Very right. I would like to add one item for discussion and that is that adding to a loser is ok as long as you don't cross that 2 percent total loss of liquid net worth line in the sand.
I would still like to hear from Mschey. Is the offer still available and did anyone take him up on it. Since he is "elite" trader. Mschey is the exception and not the rule. You need capital to trade and thats the bottom line. Without it you cant position at all. Over leveraging is the downfall of 99% of traders. With proper capital losers turn into winners and vice versa.
The offer was meant in jest...a shot at another ET'r who was auctioning off lunch with him. FYI, I did meet with a couple of guys over lunch, no charge, no fees, and we talked about trading for a few hours, where they are at, where they want to be and a few approaches to getting there. My way of giving back to some guys who are struggling!
I have been reading the last few pages of posts, and it begs the question...do you guys really trade? 25 years and never a large loss? You never bought a stock that gapped down $10 overnight? What were your positions in 87'? I am starting to smell something here....starting to smell like bullshit! Every system/strategy has an evil nemesis...and that is your largest loser. It is coming, everyone will get hit buy it, and one only needs to manage there money so that event won't put them out of the game. The goal of money management is to maximize the growth of your account given your level of risk. The goal of risk managment is to define and plan for the worst case scenario ahead of time, and create a plan of action for dealing with it when it happens. The concept of preemptive actions works fantastic, everyone should have a plan for this. I have much to do today, time to do some work that will lead to profits. Enjoy your day! Good luck trading today, ES!
I was down 40 percent during the first year that I traded at the beginning of the 80's. That was when I learned that a large loss is never ever acceptable. I don't ever trade stocks except for when I carry mutual funds where profits are banked from time to time. I only trade futures and as far as 87 goes-I shorted the big S and P in late August off of the weekly chart bearish divergence. It was an unmistakeable signal.
Yes my friend"...and without "SOUNDING ARROGANT" it seems they will never "get it". Think outside of the box and Good trading to all...
One post you sound like Ghandi and then in another different. What gives here. Personally my largest loss was 11,500(stock trade) back in 2004. It took me 5 months to recover that loss, but was a great learning lesson. If you smell sh*t why dont you brush your teeth and take a shower. Good luck with your opening orders, futures,stock trading, currency and all the instruments you claim to trade.