If your firm lets her trade that, then they are a horrible firm to be with and you should consider leaving soon as they will go belly up. Everyone acts amazed that Nick Leeson took down Barings or one ass hit SocGen for $7 billion. Why is that so difficult to believe when this one woman hit $625,000 in a day. What if, hard to believe, risk management was even more lax than this and she hid it while she tried to make it back and next thing you know she is down $5 million. This is so negligent you should be able to sue the firm for negligent risk management and get your money back and shut them down. After all she goes from small to suddenly 100 cars and 600 TY????
Sorry but she not that awesome. Can hit the streak but no risk management. If she was an awesome trader then she would have taken a small hit on her increase in size and scaled back like a responsible intelligent trader would, Not something so large compared to her usual size. We all make mistakes but the good traders reign themselves in after a little mistake. If she is the best in the firm, the firm will not be around in a year or two with this volatility. Please think about it... Hopefully that awesome trader does not cost you your job. Hope it all turns out ok.
She went haywire because she had a big loss. If there was no reason for her reaction to this loss to happen, why does this response happen so often, to so many people? We're running up against human nature, which is very powerful, here. Actually, she should. If she doesn't, this lesson ain't gonna take hold. You don't learn from the good times - you learn from the bad.
Experienced my ass. Any trader who trades 100 SnP E-mini cars knows how to hedge the position if it goes south. I'd say with this type of risk management, this "firm", or paper trading outfit, or whatever it is, will be done by the end of this year.
Actually with 600 lots of the 10 years.. that equates to roughly 10,000 a tick. In an average ho-hum day, it prob ranges around 30-40 ticks. Double that if it isn't ho-hum..... Lets just say throw out the S&P trade for a sec.. Swinging 500K either way is fairly common with that type of size on an intraday position. It should be easy to trade out of this loss if 600 lots was a normal position.. She shouldn't feel bad. You shouldn't feel bad. But there is nothing great about her.. just a gambling problem. And it won't go away. Vegas was built on it..... Not to mention daytrading prop firms
Even if she has a huge set of Milk Cans, is that an excuse for being a reckless trader? Now if the title of this thread was, "My boss blew me", it would be interesting!
But the media says women are superior to men in every way...gosh, how could this possibly have happened? Maybe she needs some of the female hormones that guy at SAC Capital was taking.
I meant that she didn't have to put this risk on and lose this much money and ultimately feel like shit. I didn't mean she doesn't have to feel like shit for what she did because you're right. It's a huge process in learning.