my boss blew up

Discussion in 'Trading' started by morreo, Jan 27, 2008.

  1. vandger

    vandger

    $625,000 could even 4 months profit of your team,which shows how efficient your team is.

    but when u said this women is an awesome trader in company,that is the very thing i dunt understand,how can a trader never use SL and keep on averaging down be a awesome one?

    i shall say although there is little difference between trading and gambling,say like Texas hold'em,not seeing your Hole cards then just all-in for the money is sth no PPP will do.

    we r trader,not clown.
     
    #51     Jan 27, 2008
  2. JSSPMK

    JSSPMK

    What if this is not as it seems? What if nobody lost anything but a plot to screw you guys out of your earned money, you never know.
     
    #52     Jan 27, 2008
  3. August

    August

    Highest profiting begets the highest drawdown. Maybe she's just a risk tolerant trader and this was the drawdown.

    Question for you - when you came into the company - did they watch you trade or teach you trading before they started having you trade your money? What exactly was the qualification for that? I'm just curious how that would work.
     
    #53     Jan 27, 2008
  4. EXACTLY what I was thinking???
     
    #54     Jan 27, 2008
  5. morreo

    morreo

    When I say she's an awesome trader, I mean she's an awesome trader when we trade eurodollars. She's an awesome strategist for our eurodollar portfolio and has made us 2/3rds of a million dollars in 1/3rd of a year. This loss of hers was because she started trading a new product without any knowledge of it and she got smoked. Honestly, she's pretty damn conservative with our eurodollars. This was totally out of character. Different products have different characteristics. A good trader can lose a lot of money on an uncompatible product. Though I see how you see contradiction in my words because honestly, there is. I don't know what she was thinking, why she broke character by trading the S&P, or why she made such newbie mistakes in trading it.

    The training at our company is spending about a month to 4 months trading the Asian shift... The slowest damn shift ever... ever. Then we usually start trading European shift for a little while until we are consistently profitable for a few months. Then the person can start their own account in the company and hire whomever they please (either from the training pool) or from outside the company to trade the other shifts. Some people decide to hire no one and go solo.
     
    #55     Jan 27, 2008
  6. What the fuck?

    You'r still with this firm? Team? Pod?

    Did she blow out an LP pooled account or just her own?

    If she blow up her own account, who cares.

    LOL, the suckers will blow out the next few months. Only time before we see a mass exit of 'traders'.
     
    #56     Jan 27, 2008
  7. How is her long term record?
     
    #57     Jan 27, 2008
  8. BCE

    BCE

    Sorry, but this doesn't have to do with what product she was trading. This has to do with gambling and not using money management and it has to do with averaging down and not using any type of stop loss. "Awesome" traders just don't make this type of mistake. The problem with averaging down is you can get away with it so many times and it saves your ass or makes you money. But when you're really wrong this is what happens. It's nothing new really. This trading "strategy" and blow up happens all the time. And the results are inevitable. We get in trouble when we insist we're right and ignore the market movements. This strategy is full of holes and you will get burned using it. There's no exception to that reality. You trade by averaging down often enough and eventually a trade will really go against you and you'll blow up. Period. You'll lose all the money you've worked so hard to earn with other trades. But if those trades were gained by averaging down they're not an example of "awesome" trading.
    BTW, whoever said this is actually a great lesson for you was absolutely right and you should actually be thankful it happened. You'll get that eventually too. Good luck to you.
     
    #58     Jan 27, 2008
  9. question now is how are you going to trust her anymore? It's one thing to be wrong or even say "tilt" on one trade but she told you she had reduced the size which she didn't do..
     
    #59     Jan 27, 2008
  10. morreo

    morreo

    Good question. We're going to get another guy trading the day shift with her, so they can watch out for each other. Until that happens though, i'm keeping a pretty close eye on her (checking positions hourly online) and if I see anything out of the ordinary, i'm going to come in and pretty much quit trading for her. I don't exactly what I would do if it happened again though... I just am going to trust that she learned from her costly mistake. I was also told by the CFO that instead of sharing my uncomfortableness with her, I should go straight to him.

    Also it does depend what product it is, BCE. I don't know if you've ever traded eurodollar spreads or any kind of spread at all, but there is a limit to how far they can go. We could probably get to the minimum that the front eurodollar spread could go and still have enough capital to keep trading. It's called a hedge fund. With outrights, you run out of capital before it gets to the minimum.

    When one outright moves, the next month follows... ahh forget it.
     
    #60     Jan 27, 2008