Painful Market Lessons

Discussion in 'Trading' started by trader99, Aug 3, 2016.

  1. trader99

    trader99

    Does it seems like your biggest losses are trying to teach you and mock you?

    I sold out a large ZW (wheat futures) position yesterday at the lows. Now it came roaring back to laugh in my face.

    So much pain and misery.

    Big lesson learned. Don't buy too large of a position. Secondly cut losses short. Don't wait til ultimate pain point to sell because that's usually the bottom.
     
    the4xczar and JesseJamesFinn1 like this.
  2. lindq

    lindq

    Yes, that is true. It often is the bottom. But if you're feeling the pain, then others are as well. And that's often a great time to get back in.

    Just take a pause, clear your head, and make it a new trade.
     
    trader99, the4xczar and ironchef like this.
  3. Handle123

    Handle123

    My system have taken about dozen longs as it been going down, have no idea if it is bottom yet, just go with the flow. So long as you trade as far as your rules, you can't be thinking of failing, it part of the game, just business. I been trading Long term for so long now, I don't think much any more of losses or wins, goes up/down and so long as I continue to watch, I doubt anything will change, people don't change.

    Monthly Wheat
    upload_2016-8-3_9-56-32.png
     
    beginner66 and K-Pia like this.
  4. qxr1011

    qxr1011

    I do not think you learned the lesson....at least not the right one

    if you did it not on the whim but following the signal from your method - u did nothing wrong. If you will continue to notice that you selling at the lows then something may be wrong with the method.

    well if there is no signal from your method to buy - nothing is wrong, if there is a signal - open new position (it does not matter that you sold it yesterday)

    why?

    very rarely traders buy at the bottom and sell on the top...

    also each method has it limits, may be yours reached it in that particular case

    no reason to hit the wall with your head, stay cool honey-bunny :)


    its all relative
    size of the position should be determined by your method

    entering, exiting and managing the position - by the method only



    see how many times i used word method?

    and how many times did u use it?

    zero...

    because u have none or if u have it then u r not using it

    the method for the trader as the pole for the tightrope walker: he never releases it, never...

    you do not have a pole , therefor trying unsuccessfully to catch a wire on the way down...

    so the big lesson for you should be - to use a pole (method) and never let it go !
     
  5. Hindsight..... always 20/20 :banghead:
     
  6. Redneck

    Redneck

    Painful Market Lessons

    Lessons are Lessons - painful..., beneficial.., or otherwise - is solely in the mind of the beholder


    RN
     
    K-Pia likes this.
  7. Jones75

    Jones75

    Been there, done that so many times, if I wasn't an adult, I'd start crying big alligator tears.

    I know this sounds so cliche, but, buy low and small, and wait for "it" to come to you. Defense first. I still have to smack myself around (not literally) from time to time for a reminder …buy low, sell high and don't get greedy.

    Hang in, and good luck!
     
  8. K-Pia

    K-Pia

    Even the status "Lesson" is actually...
    In the eyes of the beholder =P
     
    Last edited: Aug 3, 2016
    Redneck likes this.
  9. K-Pia

    K-Pia

    Buy Low ... Sell High. Really depends !
    Sometimes it's low & Weak ... Or low & Strong !
    Sometimes it's high & Weak ... Or high & Strong !
    Still 50/50. Or even 25/25/25/25. Anyway ... Still aleatory.
    So better not to bet the farm ! Especially with a ratio lower than 3 to 1.
     
  10. qxr1011

    qxr1011

    well it's not for the working method (it's better than 50/50) and especially not for the one that does not work (its worse than 50/50), for people without the method (working or not) it's much much worse..


    the blond was asked what are the probabilities that the dinosaur will come out from around the corner?
    50/50 she said - it will either come out, or not...
     
    #10     Aug 3, 2016