Lost half this year's profits bottomfishing... lessons learned

Discussion in 'Trading' started by KCalhoun, Apr 30, 2020.

  1. KCalhoun

    KCalhoun

    I make both winning trades and stops regularly, here's lessons learned from recent stops.

    Situation: back during the market selloff I was up $9000 net profit, successfully swing trading small size (20 - 100 shares at a time) inverse ETFs like SQQQ TVIX UVXY .

    I then lost several thousand trying to bottomfish them this last month. Although I'm still profitable on the year, I could've done much better if I wasn't stubborn. I own my fckups.

    Lessons learned:

    I should've done ETF arb swing trading, like VXX/SVXY TZA/TNA and not been a stubborn permabear

    Price action is all that matters, despite pandemic and unemployment and earnings misses and common sense saying market should've kept selling

    Don't fight the fed

    Buy what goes up at 2day highs, sell what goes down.

    Don't overtrade, especially due to fomo

    Sound familiar?


    ... I did correctly manage risk, trading small with conservative stops, but still added up.

    .... I'm still bearish and am scaling back into SQQQ VXX SPXS SOXS SDOW TVIX etc, just more cautiously
     
    1957may10, Onra, remogul92 and 6 others like this.
  2. expiated

    expiated

    Right on! (The numbers/statistics/technicals are what they are.)
     
    Last edited: Apr 30, 2020
    KCalhoun likes this.
  3. deaddog

    deaddog

    Are you day trading, flat at the end of day?
     
  4. Turveyd

    Turveyd

    Bottom fishing just gets you smell fingers.

    Brush it off and Learn!

    And stop having an opinion on bullish or bearish, play the setups mainly based on Risk to Reward and that's it.

    If market followed common sense, we'd all be rich, it'll always do what hurts Retail the most.
     
  5. Like an old turkey farmer used to tell me...

    "Live and learn... mostly just live".

    :)
     
  6. zdreg

    zdreg

    "Buy stocks that go up; if they don't go up, don't buy them” (Will Rogers)
     
    fan27 and KCalhoun like this.
  7. easymon1

    easymon1

    does he accept clients?
     
  8. SunTrader

    SunTrader

    If all you do is invest.
     
  9. Turveyd

    Turveyd

    And if you don't use margin so you can with stand the dips and if the market always goes higher eventually then it's the perfect system to gain wealth.

    Ofcourse it needs wealth in the first place as it's a slow method.
     
    KCalhoun likes this.
  10. Sekiyo

    Sekiyo

    Is price action or the Fed more important ?

    :p

    You're still in the game.
    You've learnt lessons.
    You're up yearly.

    Great !
     
    #10     Apr 30, 2020
    KCalhoun likes this.