Losing money in forex

[premiumrush]

Did an experiment on $250 SGD trading in EUR/USD pair. My naive trading strategies are as follows:

1. 7 days / 14 days average crosslines
2. 70 / 30 RSI
3. Stop Loss / Profit taking set for each trade

In total, I did 20 trades
Winning trades: 0
Losing trades: 20

Outcome: lost 100% of capital

How can I increase the number of my winning trades? I can't believe I lost 100% and lost all the time? What am I not seeing or doing wrong?

 

[blurinvestor]

Did an experiment on $250 SGD trading in EUR/USD pair. My naive trading strategies are as follows:

1. 7 days / 14 days average crosslines
2. 70 / 30 RSI
3. Stop Loss / Profit taking set for each trade

In total, I did 20 trades
Winning trades: 0
Losing trades: 20

Outcome: lost 100% of capital

How can I increase the number of my winning trades? I can't believe I lost 100% and lost all the time? What am I not seeing or doing wrong?

$250 and can last 20 trades before being wiped off is very impressive. Cos there are people who lost by the thousand within minutes just based on 1 trade.

I suggest you look at this thread and gain some insight from there - http://forums.hardwarezone.com.sg/money-mind-210/forex-tradingwithrayner-4178577.html.

 

[antonpoh]

Next time you want to buy up you go sell down.

Base on what you use point 1-3 to trade forex, think you better give up what you don't understand.

 

[HWZ1973]

You have proofed that you are the best reverse indicator!
100% zhun!

 

[peterchan75]

Once awhile there is this blackswan event. Most recent one is the swiss franc.
http://fortune.com/2015/01/16/swiss-franc-400-million-losses/
Some local forex traders grumbled about "requote" by some forex shop.
It was later reported that Goldman was on the other side of the trade.

 

[Lewis.T]

I'm sorry TS I found this thread amusing. Good news is it's not a significant loss!

 

[FP_IFA]

I can't believe of any strategy that can lose 20 times out of 20 times unless your take profit is like 100 pips and your stop loss is 10 pips.

 

[supratentorium]

I humbly suggest to give up the endeavour of trading forex.
Generating trade signals based on those non-dynamic calculations (indicators) in a dynamic market is a losing proposition.
You need to understand how a good trade which is repeatable looks like and why it works.

 

[premiumrush]

Next time you want to buy up you go sell down.

Base on what you use point 1-3 to trade forex, think you better give up what you don't understand.

It's true. I don't understand fully what I am doing. I read up on the RSI indicator and did a bit of back testing. It seems quite reliable.

 

[premiumrush]

I can't believe of any strategy that can lose 20 times out of 20 times unless your take profit is like 100 pips and your stop loss is 10 pips.

Maybe. What's a good rule of thumb to set stop loss strategically?

 

[bball21]

Maybe. What's a good rule of thumb to set stop loss strategically?

haha i make 2000 trades before i can fully wipe out my first account, you are the best man!

 

[premiumrush]

I humbly suggest to give up the endeavour of trading forex.
Generating trade signals based on those non-dynamic calculations (indicators) in a dynamic market is a losing proposition.
You need to understand how a good trade which is repeatable looks like and why it works.

Yes, I don't know what's a good trade as this is my first time trying out forex. How can one get a sense of a good trade?

 

[Perisher]

People who knows how to set up a good trade wont give it up for free.

Some might be willing to lead you on the right track.
You might have better luck learning from experience and try that thread, Forex Tradingwithrayner, blurinvestor shared with you first.

 

[wahkao3]

do the exact opposite

 

[joshua182]

wa u sibei zhun u just tell us ur trades we take the opposite side and huat

 

[Futureskid]

Did an experiment on $250 SGD trading in EUR/USD pair. My naive trading strategies are as follows:

1. 7 days / 14 days average crosslines
2. 70 / 30 RSI
3. Stop Loss / Profit taking set for each trade

In total, I did 20 trades
Winning trades: 0
Losing trades: 20

Outcome: lost 100% of capital

How can I increase the number of my winning trades? I can't believe I lost 100% and lost all the time? What am I not seeing or doing wrong?

Good experiment! U managed to limit your losses to your capital only. Great job! At least u gained the feeling of losing. Ironically, doing the opposite wont helps too.

(Trying to sound like a guru)
No trading strategies are naive; Turtles used to be very good in the past using simple trend following. Since u are doing an experiment, it's important like a science experiment to have a proper record and knowing what u want to achieve. Most important thing is whether u stick with your experiment parameters, not breaking your rules without strong justification, otherwise is just another game u played and forget. Losses and gains are not so important in the initial stage as long as u don't game over yourself, more importantly is knowing yourself and your reactions, after all this may not be a game for everyone.

 

[QNH1013]

wa u sibei zhun u just tell us ur trades we take the opposite side and huat

hahaha. you might as well just tell him to give you money

 

[wahkao3]

Dont bother with forex...lots of slippage, spikes, prices jump up and down with no liquidity, not possible to fill orders...you cannot simulate accurately.

i thought forex is super liquid????

 

[Shiny Things]

When news is coming out, all the bids and asks disappear... For retailers, they normally trade with retail shops and not on real exchange...

For banks and large orgs trading with one another, I have no idea but I think liquidity should be there.

Nope, it's just as bad on the interbank platforms. Liquidity always evaporates just before a big number: the spread widens dramatically and you can't get as much done at the inside price. That's a totally natural reaction, though; they don't want to post bids and offers and thereby take coin-flip risk during the data release.

 

[antonpoh]

It's true. I don't understand fully what I am doing. I read up on the RSI indicator and did a bit of back testing. It seems quite reliable.

Maybe you can try it with MACD. Usually when the news is out at night and there are lots of movement, most people make the wrong guess on which direction to go in.

Last time if it move up or down alot at night, the next day it will usually correct back the other direction. I will usually grab $200-400 and run. Don't know if it still works the same way.

Anyway best if you don't touch forex.