I Blew Up - What Now?

Discussion in 'Professional Trading' started by heynow, Jan 19, 2007.

  1. heynow


    Well its all over for me. I put in two years starting in 2005 full time. 'Tuition' money has run out. I'm kind of glad, feel a sense of relief almost - no more living in denial. I realize that in life and in trading you have to have a plan to limit risk and never ever violate it because all it takes is one instance of violation to blow you up or if you continue 'cheat' and violate it in small ways then you end up with a "death from a thousand cuts."
    Just when I finally settle on an approach I felt comfortable with, I run out of money. No big losses, just churn - just couldn't overcome the cost of commission and fees.

    My options are:
    1.) Go into credit card debt to finance a 'one last shot' attempt. I doubt this would work as scared money never wins. However, I do make great runs when I tighten up risk and become good at discipline. Its just that when the money comes in I lose the discipline and respect for risk.
    2.) Try to find a firm that backs traders. I do have 2 years experience. I've made all the mistakes an inconsistent trader can make. All I have to do is work at not repeating mistakes - all I need to do is focus exclusively on keeping risk low and maintaining discipline. This will be tough. I'm in the NYC area and there are not many firms out there that back traders anymore that I'm aware of.
    3.) Find a job. This is the way I want to go. I think taking a long break and swing trading would be best. However, it will be extremely hard for me to find a job if I'm honest about my day trading and my failure at it.

    I create this thread mainly as a warning to inconsistent traders who think that 'eventually' they will get it. If you violated your plan even once today, your in trouble. Because your money will run out before 'eventually' arrives.
  2. I would go with 1. Because that is what I did.

    Greatness is when you made all the mistakes.

    Go with 1, and then after that 3... (and possibly 2)

    I did everything.. all of them & in that order.

    There is a saying in the hardwoods... To be a great basketball player, you must play against people that are better than you.

    Thus, it also holds true in trading. To be the best, oftentimes, you must do the IRRATIONAL... what nobody in there right minds would do. Common sense isn't all that common they say. Adversity builds character & nothing else can.
  3. Pathus


    Thank you for the honest post. I learned something today.
  4. You could put in another 3 to 4 before you get it right ... or you might make it in just another 6 months or so, don't stop now (unless you really want to).

    Um, you definitely don't want to that route.
    Don't know anything about that, so I can't speak on it.
    I do know a lot about this, and short of living off of someone, I'd say that's the way you want to go. It's working for me, and if anything, the frustrations of the job just enhance my trading now. You don't have to give someone your whole life story, just give them enough info to let them know that you are going to be an asset to whatever their business is.
    Great lesson. I couldn't agree with you more. The real trick is getting together the sufficient funds so that you can ki$$ your job goodbye! How much money do you need to go it on your own?

    Good luck,

  5. Tums


    you are still hallucinating.

    you are still in denial.

    you are still daydreaming.

    your method does not work.

    you have not found the common denominator to your failures, nor your successes.

    until one day you accept the reality that not everybody can be a successful musician, or a successful attorney, or a successful chef... you will keep on trying.
  6. Whatever you do do not use credit cards as a source of funds. Get a job. Or two.
  7. Odgnut


    If you go with option 1...you will probably need to make at least 20% just to break even with the interest you're going to be paying. Not the best risk/reward.
  8. Well, if you are looking for advice, you haven't given info about your financial/personal situation. Dependents? Monthly fixed expenses? What instruments you trade? Work experience? Age? Education? And most importantly, if you resumed trading, why would this time be different?
  9. maxpi


    I wouldn't worry about the credit cards, once you are profitable you will not need credit, burn through them if you think you are close to turning the corner but I doubt if you are. At two years level of experience you probably should go with a prop firm that teaches you something. To just go with a prop firm is not going to change anything except your BP if they don't teach you how to trade successfully.
  10. jllm03


    Option 1...NO WAY!!!!!

    Couple years ago I was trading AOL options and making an easy $1000+ everyday.
    I had a good system... but deviated off of it when I thought "this is too easy"and got hit hard on one trade. Next day I tried to make up my losses. Down again..
    Next day tried it again. I thought I could not lose 3 in a row ....another loss again.
    In 3 days I went from + $20, 000 account balance to less than $2000.

    Couple months later I borrowed for several credit card to "re-finance" my trading. "I know what I did wrong, and I wont do that again." 3 months later same boat again. Now I was in debit of $30K to credit cards.

    Learned my lesson...wrecked my marriage, and finally paid off the sharks (which too a couple years).

    Now I trade with a lot more discipline and limit my losses.
    You have to treat it as a business. There will be loss along with the gains. You must have a plan before you enter ANY trade and stick to it.
    DO NOT finance any trading on money YOU CAN NOT afford to lose!
    #10     Jan 19, 2007