Is my career over?

started with $30,000 account. I made $3000 in my first month. I made another $2000 up until the last day of my second month. So I was up $5000 after two months. On the last day of my second month I lost $13,000. That same week I lost $3000, $3000, $2000, and $4000. Account was then at like $10,000. I took it easy for another month and broought the $10,000 up to $14,000. Then I lost the entire $14,000 over the next two weeks. I refunded my account with $10,000 and right now my balance is at $7000. It's been some ride and I only have about $10,000 more to fund my account with before I'll have to call it quits.

I've been trading the 30-year US Treasury Bond this entire time. I see that what has led to my downfall is trading too big size. I was trading 40 lots.

Given my experience, is it true that no prop futures firm would ever want to hire someone like me?

Let me know what you think. Thanks

 

Yes, your career is over!

I mean really, trading 40 at a time with 30K, no wonder you lost it all. I suggest you read a few books on trading and money/risk management.

The intial goal for any trader is to stay in the game long enough to learn it.

 

How old are you and what's education? Do you have anymore money left?

 

Just a quick note:

I am retired but I did hire traders. I wouldn't consider you as you have displayed particularly bad judgement as regards risk management. To me, this means that you MIGHT be the kind of trader who would hold a loser without keeping me informed. On a daily basis that wouldn't concern me too much as I used to review each trader's book nightly. On an intraday basis however you represent a danger to me, so I would be shaking your hand and telling you "We'll call you".

You can remedy this deficit by going back and showing you have learned your lesson. That is what I would do before approaching an office for a job.

Good luck,
Steve

 

What MTE wrote above is such a great truth that, with MTE's permission, i will re-type it here 10 times to express how much i believe in its importance:

The intial goal for any trader is to stay in the game long enough to learn it.
The intial goal for any trader is to stay in the game long enough to learn it.
The intial goal for any trader is to stay in the game long enough to learn it.
The intial goal for any trader is to stay in the game long enough to learn it.
The intial goal for any trader is to stay in the game long enough to learn it.
The intial goal for any trader is to stay in the game long enough to learn it.
The intial goal for any trader is to stay in the game long enough to learn it.
The intial goal for any trader is to stay in the game long enough to learn it.
The intial goal for any trader is to stay in the game long enough to learn it.
The intial goal for any trader is to stay in the game long enough to learn it.

and the only way to stay in the game long enough to learn it is to keep reducing your size the more you lose, until you are consistenly profitable for a significant period.

 

I know this has been rough on you, but let me say this.....it is only over if you give up and quit. Every successful trader has taken a few losses in their day.

If you can only make a couple grand a month, you can't lose 2 or 3 times that in any week, and certainly not in any one day. That was your first mistake. When you lose you have to reduce position size and/or standdown for a day or two to reevaluate what you are doing.

Second, trading size is ok....if you manage risk. You did a terrible job of managing risk and that is what put you out of the game.

You need to have a business plan....a strategy for trading the markets, and a plan for managing your money. Start first with your losing days, reveiw each day, what happened, how you managed what happened, and action you could have taken to protect your account. Was there anything to clue you in to trouble before things got really bad? Then revisit your trading strategy, is it a viable strategy? Can it be improved? etc.

Start trading small when you do start trading again. Make sure you have an edge before you start to increase your size. If you are day trading, you should be making money nearly every day, if you are, it is safe to assume you have an edge.

This is just a short "cliff notes" summary here, but this should give you an idea of what needs to be done.

 

- Go read some books about money management (Van Tharp`s books come to mind).

- Unless you are broke, and unless you want to keep on trading the way you have, your career ain`t over.

- Cool down, perhaps take a month off while reading some books and coming up with strategies to manage your money. The market will always be there and you can always make money later with better plans (as suppose to blowing it out a few more times now the way you`ve been trading).

Good luck.

 

You were gambling.
You need to start trading.

 

u shud have been tradin' stocks as u are a newcomer'n' u have access to much lower leverage barriers...30/50shares shud have been u initial stake with steady increments 'till 100-200; given u acct size 500 da max size when profitable...but ya, a touch late now, innit[?]

 

It is quite amazing how incredibly naive so many of us are when we start trading. It makes me feel a little better knowing I have plenty of company.