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  1. #1
    Rookie Member

    how to recoup my losses HELP! !!!

    I started to trade binary options a few days ago without any experience, I learned to read charts and strategies, etc.

    The problem is, over the course of the first day, I made one beginner blunder after another, committing big percentages of my trading capital that I shouldn't have... It was really stupid and I know that now, but I didn't know that on the first day. I've lost 1.5k so far on currency, which was volatile during the big trading hours, I blew all my positions on short term, like 5-15 mins, as the broker suggested...

    Which assets should I choose to trade, and what should be my expiry period? I started testing the MACD strategy here: http://www.binaryoptionsthatsuck.com...gy-yes-we-can/ with $20 call/put with 1 hr expiry (still on currency, mostly eur/usd)

    Does this expiry period sound good? my broker is stockpair, they only offer 5 min, 10 min, 15 min, 30 min and 60 min, anything above that is interday.

    I hope a pro can clarify some things for me about the MACD strategy, after the MACD crossover, you look at the SMA to see if bearish or bullish, but... how long will the trend last? in the example picture, the candlestick also crosses the SMA line, is this part of the strategy?

    and moreover, how should I damage control right now so I don't lose any more money?

    I know this is a lot of questions, but I'd be really grateful if an experienced trader can help me out!

  2. #2
    Specialist Member TAllen1429's Avatar
    Hi

    I am sorry to hear your story but it happens to many novices.

    First you must calm down and take a step back.

    I can supply you tomorrow with help so that you can start recovering from a series of consecutive losses.

    You are basically overtrading so you must stop trading for the moment otherwise you will lose much more.

  3. #3
    Rookie Member
    Hi, thanks for replying. I have stopped trading definitely. I noticed real traders do not make so many trades in one day. I've tons of trades, which was probably my first mistake. I hope you do come back tomorrow, I want to hear your advice.

  4. #4
    Specialist Member TAllen1429's Avatar
    Hi,

    I am afraid that there is simply no quick solution to regaining the losses that you have just sustained. You will need to take your time and learn all about binary options trading as it is an involved subject. You can do this by visiting this Forum on a regular basis. There are many experienced traders here that can provide you with excellent advice.
    In the meantime, you should focus on the following aspects of your trading in order to minimize your losses as a top priority.

    ‘In the early part of your trading career, you may unfortunately suffer a series of successive losses that could well drain your confidence. Despair not; as such events have happened to all traders, even experts. Instead, you should utilize such experiences to hone and strengthen your trading skills and psychology.

    You can start countering such problems by evaluating the effectiveness of your money management strategy. This is a procedure that you can use to determine the amount you should wisely invest per trade. For example, expert consensus recommends that beginners should utilize a simple money management strategy that advises not risking more than 2% of their account balance per position. By doing so, you would comply with the famous trading maxim endorsing ‘do not risk too much of your balance at any time’.

    If you then endured a string of consecutive losses, your account would be well-protected if you implemented such a strategy. For instance, envisage that you lost 8 positions in a row and you wagered 2% of your equity on each one. Even after such a demoralizing event, you would still have about 85% of your money intact. However, if you were to risk 15% per trade under the same circumstances, then you would only be left with about 27% of your balance.

    You will also provide a stern defense against the negative features of equity drawdowns which are generated everytime a sequence of losses is encountered. Imagine that you have just lost 50% of your account balance as a result of one bad trade. This means that if you had an initial account balance of one thousand dollars it would now be worth five hundred dollars. Consequently, just in order to replenish your equity back to its initial value of $1,000, you will now need to secure a win of 100% of your present account balance, i.e. $500.

    By restricting your risk exposure to 2% of your account balance, you can readily counter insidious problems, such as drawdowns. In addition, expert consensus advises that you should initially focus your full attention on improving your skills with the primary intent of suppressing losses. Essentially, your main objective must be to produce evidence that you really can generate profits from trading binary options on a consistent basis before risking real money live.’


    Hope the above sets you on the right path.

  5. #5
    Specialist Member LesterK's Avatar
    Hi simplywaves,

    I am really sorry for your initial lost. It is almost inevitable to lose some money at the beginning. If you follow strict money management this money will be much less than if you do not follow such a plan! Your biggest mistake was that you overtrade with too many trades per day. Probably the broker advised you to trade shorter time frames, but it is not recommended for newbie traders. The shorter the time frame you trade - it is more difficult to predict the next market move. To be a step ahead of the markets it is better to start with daily or weekly expirations of the contracts. I am trading now some one hour trades, but with small risk per trade and my main gains are from weekly and monthly binary options. You could also follow some of the tips provided by our experienced traders Michael and Richard. They are both weekly and monthly tips. Also don’t forget to follow strict money management. Risk only one percent of your capital. If you have 1k in your trading account your trades must be only 10$! This is the only way you could survive in the long run and steadily learn how to trade successfully.

  6. #6
    Specialist Member TAllen1429's Avatar
    Great Advice, LesterK

  7. #7
    M.J
    M.J is offline
    Veteran Member M.J's Avatar
    Quote Originally Posted by simplywaves View Post
    I started to trade binary options a few days ago without any experience, I learned to read charts and strategies, etc.
    .............................................I've lost 1.5k so far on currency, which was volatile during the big trading hours, I blew all my positions on short term, like 5-15 mins, as the broker suggested............
    ...........
    ......
    About MACD strategy, there is no fixed exit time. You can start short expiry times as this strategy is advised to use on 5-mint chart.

    Other than that I have a few comments and questions.

    You made "too many mistakes". Sorry but you are better than 90% beginners in loosing money. You lost 1.5k just within a few days which happens but rarely. What was your total investment?
    It looks like, as u wrote in ur thread, u lost it as per broker's advice? Do u mean broker provided signals and you followed them by investing high money in every option?

  8. #8
    Veteran Member Ammeo's Avatar
    MACD + Stochastics have always worked gr8 for me but i only used to apply them on the daily charts. Although i dont always use them but still do so sometimes. There comes a time in ur chart analysis when u can read the chart's performance without any indicators but it takes time..

  9. #9
    Veteran Member Ammeo's Avatar
    Btw if u do wish to continue with MACD then use the 3,10,16 settings. I found this settings to be the best when applied after trying atleast half a dozen settings.

  10. #10
    Master Member vinayakm's Avatar
    Quote Originally Posted by simplywaves View Post
    I started to trade binary options a few days ago without any experience, I learned to read charts and strategies, etc.

    The problem is, over the course of the first day, I made one beginner blunder after another, committing big percentages of my trading capital that I shouldn't have... It was really stupid and I know that now, but I didn't know that on the first day. I've lost 1.5k so far on currency, which was volatile during the big trading hours, I blew all my positions on short term, like 5-15 mins, as the broker suggested...

    Which assets should I choose to trade, and what should be my expiry period? I started testing the MACD strategy here: http://www.binaryoptionsthatsuck.com...gy-yes-we-can/ with $20 call/put with 1 hr expiry (still on currency, mostly eur/usd)

    Does this expiry period sound good? my broker is stockpair, they only offer 5 min, 10 min, 15 min, 30 min and 60 min, anything above that is interday.

    I hope a pro can clarify some things for me about the MACD strategy, after the MACD crossover, you look at the SMA to see if bearish or bullish, but... how long will the trend last? in the example picture, the candlestick also crosses the SMA line, is this part of the strategy?

    and moreover, how should I damage control right now so I don't lose any more money?

    I know this is a lot of questions, but I'd be really grateful if an experienced trader can help me out!
    Making money off binary options can be a tough nut to crack even if placing trades are fairly simple.

    The good thing is that trading binary options if done correctly can make a lot of money for you and this is also true over the long run. It has been so for me as well. Binary options trading is so much more than what meets the eye and it requires patience, trading acumen and keeping your emotions in check.

    As much as it is disappointing to hear about your loss, I am pleased that you have come to this forum which is the premier source for binary options information.

    You should also take the time to visit our website: http://www.binaryoptionsthatsuck.com/ if you haven't done so already. TAllen1429 and LesterK had great tips that I want you to read and reread carefully. This is material that you need to sleep on to understand and implement.

    Remember, that all good things take time.

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