One of these days the high will actually be the high. I have no idea when that'll be, though. If seasonality matters at all in this climate - September is statistically the weakest month in the market.
I knew a brave man years ago. He went short the ES in total for 210 contracts (at that time at $250 a point, so $52,500 for each point he lost). He lost over $10 million when the broker closed all positions after several margin calls. The year before that happened he made over $1 million net profits. Losing positions were kept till they became profitable. Then he caught the mother of all losses... He admitted later that it is better to be smart than brave.
Famous last words of many a speculator whom boasted " Brass Balls! " I enjoy Septembers thru Novembers..............
Strategy has worked well July and august. If I see some sort of “I’m fked” pattern I’ll take my losses. I try to adapt to the conditions. No strategy works all the time
As long as you have a realistic plan there is no problem. On condition that the size of the position is not too big in relation to your trading account. Losing 5 figures on a 1 million $ account is no problem.
That's what invariably happens on a long enough time scale... Long only or averaging down on falling prices can work very well as long as you don't compound or take on too much risk. But if you take on too much size - it's enough with one bad loss to wipe out all prior profits and even your whole account.
There's old traders. And there's bold traders. There are few old, bold traders. A quote I remember. Wonder if it was Ed Seykota. Funny guy.