A scary equity curve - what should I do now?

Discussion in 'Risk Management' started by Amnesiac, Sep 11, 2006.

  1. you're right - i wasn't paying attention - for some strange reason I was reading it like the -50%, have to make +100% to recoup losses, etc.....

    My bad :wtf:
     
    #11     Sep 12, 2006

  2. Seems like bs. Assuming you started off with 100k, you ran it down to 20k. Took two months off. Then ran it up to 140k in just weeks during the slowest period of the year.
    Even if true, you seem way too overleveraged.
     
    #12     Sep 12, 2006
  3. Player

    Player

    lol no worries, I was just a little confused :p
     
    #13     Sep 12, 2006
  4. Probably more like 10K down to 2K then up to 14K.
     
    #14     Sep 12, 2006
  5. Cutten

    Cutten

    Yes I think you are lucky. From your equity curve I would say you are trading positions about 10-20 times as large as you should be.

    Also, given that you are inexperienced, then you should be trading *even smaller* than that (since you'll make loads of errors until you gain more experience).

    So for example, if you are trading $50,000 positions, you should change to $3000 positions.

    I predict you won't listen to this advice, and will learn the hard way.
     
    #15     Sep 12, 2006
  6. apparently, this guys portfolio went up like 600% in less then 50 days. How many stocks/instruments is he trading? 1 or 2? HOW many stocks went up 600% in the same period?

    Sounds like BS or massive leveraging.
     
    #16     Sep 12, 2006
  7. fletch2

    fletch2

    He said futures, which implies the latter.

    Fletch
     
    #17     Sep 13, 2006
  8. siki13

    siki13

    Yes amazing ,even when i chart my chess rating in last 6 months you can see TA there
     
    #18     Sep 13, 2006
  9. So would you buy now, or wait for the retracement?
     
    #19     Sep 13, 2006
  10. In the market, fast up implies fast down. It is going to collapse soon.
     
    #20     Sep 13, 2006