There are no haters on this thread. We've all given the guy good advice. Disagreeing with one's position does not make one a hater.
Only this post shows you speak like someone who has learned from experience (failure mostly I guess, the learning I mean). I can only applaud that. Very rarely do I see a post that shows someone speaks from real experience. So much clutter, so little insight. Thanks for sharing!!!
what the heck are you talking about? You are deep under and you still cannot realize and accept you fuxxed up all those trades? Dude, do you realize that your negative learning affects you much more than the little cudo that you may with probability of 5% (95% you will sooner or later bail out at even worse prices) get by covering your losses later in case the market turns around a bit? You are doing yourself a great disservice and above all you harm yourself the most not others, even if those are just paper trades, reinforcing your garbage trading approach makes you a worse trader with every single post. Enough said.
I was not referring to anyone on this thread, especially not you. I've always seen your posts to be helpful. Just trying to help the guy get on with the next trade..
the next best trade is to realize one's losses especially when one is several handles under. My goodness.
It is not really important how many handles trade goes against a trader. FWIW, a trader can have a stop loss at 6 big figures (as I had in this case). What is really important is how much % of the capital one has lost and how correlated a specific position is against other trades in one's portfolio. This is the way I manage my book risk.
do what I do, get 100% flat, and then put the exact same position on, only this time, a little smaller, and manage it a little better, and don't make the same mistakes that got you in this mess. Hopefully, you had something going on somewhere else that was moving in your favor, to even everything out. For instance, if you were short usd against jpy, you should have been long usd against something else or if you want to do it the other way, if you are short jpy against usd (which almost everybody is) keep a little short eur/jpy on the side. they will never write an article about you. cnbc will never knock on your door for an interview. Nobody is impressed by hedging. Like they told me when I started out, "If you can beat that long bond, you'll do just fine."
Couple years back, I once allowed a position to run 12 big figures against me - since the trade was designed like that from the beginning. Core position was an calendar spread and delta was opportunistically hedged using spot. Guess how much I lost with the trade 12 big figures against me. Answer is - 70% of allowed initial stop. I agree with most of the sentiments expressed but ..... All I am trying to say is that the way risk is managed is way more important than just looking at how many handles a trade has moved against.
thats a pretty stupid way to manage risk. Yes, one aspect of trading is to manage how much percent of your capital is risked. But an entirely different yet equally important part of trading that you actually are net profitable by expectancy. Risking 6 handles on a trade is plain stupid unless you aim for a 20 or so handle profit target, which would make this a long-term position during most all market environments, meaning a position with a multi months if not year holding period. Current volatility in yen crosses simply does not justify potential losses in the region of 6 handles.