From your description… I feel you are overhorsed.
Rescuing a horse feels good… but it doesn’t create a good match.
You are 5’4" and he is 17.3 … that is a serious mismatch right there. When you are that small, it is very difficult to influence your horse appropriately. On a horse that is 16 hands or even 15 hands, your aids will be twice as effective.
You are having to lunge him - this is hard on his very big body - and it feels to me from what you write that he is spooky and you have basic control issues.
The thing is - another rider might be a happier match for him and another horse might be a happier match for you. Realize that his needs may be better met with another rider.
Denny Emerson has been writing lately about the importance of having a horse that is a good match for you, and I believe in it wholeheartedly. Riding is supposed to be fun.
Here are my suggestions:
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Ride some other horses. Ask your trainer if you can have some lessons on some other horses in the barn. This is good for your riding, and may give you some insight as to whether you might enjoy a different horse more.
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Consider putting him on the market. You want him to have a good home, obviously. If the right buyer doesn’t come along, you don’t have to sell. It might take a while.
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As I get older, I sure appreciate smaller, steadier horses who are well suited for their job. In this economy, there are plenty out there.
People mentioned that this is the second horse the trainer didn’t like, but it sounds like both times OP was focused on rescuing a horse without thinking much about her needs as a rider. When you’re the pro (or the friends on the sidelines), this can be very hard to watch.