Huge Losses

Discussion in 'Trading' started by Ripley, May 11, 2005.

  1. You have a non-existant or very poor risk plan. STOP TRADING. You have a high probability of losing all of your initial and borrowed money. Once you stop trading, come back for more help.
    #11     May 11, 2005
  2. ozzy



    You need to stop trading with real money its pointsless. No need to give the sharks your money just yet.

    Learn your stuff, grow into a medium sized fish then start nibbling on the little fish. You will slowly grow big and fat and you will be able to swallow the smaller fish.

    This is my advice. Playing futures is no walk in the park. You need to be at the top of your game.

    Good Luck
    #12     May 11, 2005
  3. I just want to say that I don't have a lack of discipline or anything like that. I am also not afraid to take a -$50 loss. I do have a good trading plan, although it is quite hard to stick to it at all times.

    I have traded on a simulator. But today was a special situation, which ended up being a big loss.

    Can someone critique this trade based on how they would've handled it. Thanks.

    Use your rotate feature on the PDF viewer to view the attachement.
    #13     May 11, 2005
  4. I bet if the market goes down 50 points tomorrow in the AM.. u will feel like an idiot.

    It happens to all traders.. trading is not easy.
    #14     May 11, 2005
  5. ozzy


    Wow. I think you did the exact opposite of me today. I got nailed 2K because of the Cesna/fly zone ordeal. But I made it back and then some. Nailed the Euro this mornig as well.


    P.S you reallly really really should not be trading. My sperm could trade better than you.
    #15     May 11, 2005
  6. Guys, the question is where would you've gotten out of that trade. Because it is a perfectly normal thing to short when it is just plummenting down.
    #16     May 11, 2005
  7. if I was trading today I would have taken the opposite of your trades ... LOSER !!!!

    ok .. sorry to sound like a prick but

    you need to look at what your methodology is

    and stop loss vs profit ( risk / reward )

    I give you credit for nice annotation on the chart !

    other than selling weakness ( yes this sometimes works ) you need to consider the area you got short in ... the SPOOS dropped 10 handles from the highs ... and the daily range was hit by the time you got short ... so unless there was follow through ( by the way ... wed. sometimes has nice fakeout moves ) there had to be some retracement ... I could go on and on ...

    good luck

    #17     May 11, 2005
  8. ozzy


    The moment you find out that the situation (flyzone breach) has been cleared you should have covered you short.

    Ripley, I didn't mean to be rude in my previous post. But by just looking at your trades. I can say with 100% positivity that you should not be trading real money. This is a tough game. It is a fierce battle. Trading is no game.

    #18     May 11, 2005
  9. One


    The annotations on your chart, both the text and the break even lines, suggest you should not be trading yet. Pain is however a good teacher.
    #19     May 11, 2005
  10. By the way this is an excellent chart. You should understand most everyone has gone through this kind of trading experience. At least you summed it up perfectly.

    The only thing that prevents me from doing this kind of bad trading is to have a simple clear edge that I try to execute the same way day in and day out. It becomes simpler to take that first loss because you know over a few weeks or months it will mean nothing.

    The problem with trading even 1 futures contract without at least 10,000 is that every trade is using too much leverage.

    Also forcing yourself to have a specific point stop rather then based on current market conditions or setup parameters will suck.

    Plus you must see how today was not a special situation. If you are trading a plan you do the same thing no matter whether a plane flies into the white house or not. You said you had 3 big losing days.

    By the way I also tried to go short there, the only thing was I had a wide stop and got stopped out later, but the dollar amount I lost was the same as I would any day, and being that I can't trade es yet I trade spy, so I lost only $25!! That's right, close enough to a realtime simulator for me.
    #20     May 11, 2005