Quote from interdigital:
I have lost half of my life savings thru day trading.
I guess now you know the importance of learning to trade on a demo paper trading account and only risking money you can afford to lose.
Nothing you can do, the money is gone. Some people quit and move on, others learn to trade and make the losses back.
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Copied from Innerworth:
Traumatized By Trading Losses
Tom, a long-time market observer once told me "I have yet to meet a successful trader who hasn't paid his dues." Tom observed that every successful trader has blown out his account and learned how to recover from it. "Take the best traders in the world...they've blown out. If trading was easy everyone would be trading and everyone would be making money. You have to pay your dues. Some people are lucky and only pay those dues for a very short period of time, while others are going to pay their dues for a very long time." The great trader Jesse Livermore blew out his account more than once in his illustrious career. Many seasoned traders have had to start over more than once.
Is it necessary to pay your dues in this way? I donât know. It may be a matter of sheer mathematics that when you trade the markets there will be times when market conditions or chance will not work in your favor and it may be inevitable that you blow out at times. Thatâs why it is vital to avoid trading with âscared moneyâ that you cannot afford to lose.
It is often said that there is no substitute for experience. Indeed, the wider the variety of market conditions you experience, and trade, the more likely you can make money in market to market. But do you need to experience every setback to learn? Many traders have experienced severe drawdowns and even Market Wizards have occasionally blown out their accounts. You donât have to experience a car accident to learn about the merits of driving safely, and perhaps you donât need to blow out your account to learn that poor money management and impulse trades can spell disaster. But not all experts agree. Some seasoned traders believe that it is necessary to see how it feels to lose capital and recover. By doing so you will experience enough pain that you will stick to your trading plan and manage your risk, on the one hand, and know what it is like to fall down hard and pick yourself up on the other.
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