I think @Bermudan Option is right on the money to have asked what capital hence risk sizes you are used to and if you built it up.
This happened to a friend of mine(actually my first Forex teacher), he had been trading for a while and had been consistent but with growing small accounts $2k to $5k, then he withdraws and starts again.
At a point he decided to become a fund manager(the beginning of the end), before long people all over funded his account and he was trading an account of about 80k. Now that means from a 2% risk per trade of about 40 to 100 dollars to a 2% risk per trade of 1600. 1600 - 100 = 1500. That is how much more he was risking, about 1500% sudden increase in risk.
He soon had a bad period and a drawdown of about $15k, this was not uncommon in his trading experience as this was just about 19% of the capital. But 19% of even his former max capital 5000 is just $950, compare that to $15000 and convert it to naira(for he was in nigeria) and you would have found out why he nearly had a heart attack. He had to go back to demo trading for a long while before he got his confidence back enough to trade his old routine.
The point here is, growing your account and increasing it a little at a time, especially with money sizes you are used to is far better and I believe would help in facing the usual trading risks without reservations.
So your past salary(s)/business gains, have been a maximum of $2000 per month, then when increasing your capital with external funds, you might want to increase it with increments of $2000 or even $4000, as you know that you can easily make that with two months of work, and risking any amount of it may have little or no psychological effect on you.
So from a 5k account you grow to 8k, then get 3k fund to 11k trade that for 4 months, grow to 13k, get another 5k fund or even 7k fund to 20k etc, if you calculate this you will see that it is easier to adjust to increasing risk sizes since you are getting used to the sums at your disposal.
It might seem extreme but you may need to save the bulk sum into an account, and try starting from an overall margin you are comfortable with. Perhaps adding more as you grow in confidence with handling larger sums.
Last edited by metobi1; December 30th, 2013 at 09:47 AM.
Sitting here watching a Mark Douglas video and he touches on something that I haven't mentioned in this thread ......
Even if I know my system generates a high win rate and the odds are in my favor, I do not know the way in which the wins/losses will be distributed.
That is a very important variable as I've transitioned from day trading to swing trading. I'm taking significantly less trades which equates to less possible opportunity and on top of that I have the "time opportunity cost" of 20 trading days a month to make what I need to make doing this for a living. This then has created the mental situation where I'm not accepting the nature of probability. I begin "expecting to win" and to have immediacy in that win .... if that doesn't happen I begin violating my rules, especially if I've taken on more risk than I'm mentally capable of assuming.