I`m continue to analyze my Forex activity...
Very interesting post found at elitetrader.com forum:
-------------------------------------------------------------
Before I started trading in February 2006, I've been mostly researching S&P500 by observation, reading as well. I have tried trading via a spread betting firm applying my strategies using a small account size (maximum $2000). My interest has always been in short term index futures trading, therefore I only used to bet on the price of index (intraday). Spread betting, similar to trading in most aspects apart from wider spreads though no income tax involved on winnings, I used to place bets risking 30% of my account minimum and ALWAYS used to get wiped out, because the last trade used to involve 100% risk at risk vs reward around 1.5:1. In total I have lost around $15,000 during the last 5 years, BUT what a lesson that was!

My past losses did affect me at the time psychologically, I thought I was a complete idiot. The truth of it was very simple though. I am only mentioning this for people very new to trading, risking 100% of your account EVEN on the most SAFE trade and/or to recoup previous loss/es IS A PRACTISE THAT LEADS TO FAILURE ALMOST 100% OF THE TIME.

I will never have this approach to trading again. Unfortunately, the law of averages suggests that the majority of people will go through this process and some will never recover. I was lucky not to use all my net worth before, probably that's why I am still here and hopefully will make it as good trader. I think it is almost impossible to recover psychologically when 100% NET WORTH has been lost, for most people.

Post from: http://www.elitetrader.com/vb/search.php?s=&action=finduser&userid=46309