wow, thank you for sharing this. I think it takes a lot of courage to post a trade like this. Personally, I would share it with a friend but I would not post it on this board! LOL. So, thank you for your courage. I think most of us have experienced our own version of a trade like this. It’s a horrifying experience! The learning that you came to is hugely important and valuable and a lot of people could learn from this if they paid attention to it. It kind of mirrors what I say A lot which is you can’t trade without a plan and you have to stick with the plan. Period. All else is gambling. Having an edge, thinking the markets going to go in a certain way, hoping,… None of it works in the long run. But you guys know that. I think this is what I was sayIng in my last article about trading as a mirror. Our interaction with the market is a place to look at ourselves and what’s going on with us. The market is 100% neutral. The way that we read it and what we see In it Is all about us. So the hardest work as a trader is not learning charts and techniques, it’s learning about ourselves and what has us act in these crazy ways. And then, what is going on inside of ourselves, that needs to be looked at or changed or given some awareness To, so that we clean it up And stop acting that way. My 2 cents.
Maan these entries... Buy after buy on sell signal candles in a downtrend... How is he even profitable. It's so bad, I had to cringe
It reads more like a Bill Clinton-Monica Lewinskyesque apology in order to garner empathy and receive forgiveness from voters/subscribing members who also lost big sheeping his trade, and thus not diminish his subscription base. Classic Psychopathic manipulative behavior.
He is a total newb. The solution is very simple know exactly how much you willing to lose on any trade. Then any loss is just cost of doing business and no emotions should be involved. Our algos risk certain percent of overall AUM on any given trade. It is really this simple. The hardest thing in this business is having an edge, aka statistically significant positive expectancy. The rest is easy.
Two takeaways here. He was trading against the trend. Candlesticks all red, you have a tsunami of traders selling out and you get in long? Also, he doubled down on a losing position? Again, trend was still down and still added more? Whether you are day trading, swing trading or position trading, you have to respect the trend for your timeframe. You will "never" win trading against the trend.
Hello smallfill, That is a bold statement "never" you made. Perhaps, the trader is a counter trend trader and only take counter trend trades. Not everyone wants to trade with trend. I take counter trend trades all the time, some with trend. No big deal. I think the trade was an awesome trade he took. It is his money and his style of trading. He exit the position and took a loss. What is the problem with this? We must all be responsible and accountable for our own trading, even if we made a mistake. I made mistake yesterday that cost me $100 on the ES. I realized it and exited. The other day , I made another mistake cost me about $80 in crude oil. I realized the mistake, and exit and enter in my journal what I did wrong. i probably make about 2 mistake a week. It is what it is. He took at $35K loss on a trade. He will learn from it. I remember one time I lost about $980 on one ES trade being stubborn and mad. I learned from it and moved on. Not a big deal to me, I guess cause I stop caring about a mistakes and losses.
This is the thing. If you want to be a better trader, you must have a trading journal to review past trades. A spreadsheet is fine for this purpose. You can note the setups you used. Mistakes you made. Good things you did. What for? After a while you see a pattern of your most common mistakes as a trader. If you minimize your mistakes, wouldn't you become a better trader as a result of it? And if you become a better trader and make more monies, is that such a bad thing? You are right. It is his monies to lose as he wishes. I am not here to dissuade you from doing what you are doing but, are you trading just for fun or to make a living out of it? Stock trading is a serious business which must be taken seriously, if one is to be successful at it. Just my 2 cents.
smallfil, I trade to make money and have fun. Mistakes happen man. I have limited my mistakes over time by tracking and reviewing the trades. Now I see certain things on the chart I do not like, I want trade it. Like those strong damn trend pull backs, I stay clear of it until I see more evidence. I use to always lose on those damn strong pull backs hoping for one more push down. Not any more. I get in on the first time or I don't get in at all. For this trader, I would be twice as mad about not entering short on the breakout bear bar.