Just saw the thread 'Prop Blowups, how common are they?' http://www.elitetrader.com/vb/showthread.php?s=&postid=731021&highlight=infamy#post731021 and some of the stories in it are truly amazing. For most that lost, i'm sure it was easy to make the money back during that bull run but what about today? How does someone recover mentally from a hit like that in today's markets?
I'm trying to recover from a blowup. It's not easy and it can be tough mentally. You have to put everything into perspective and try your best to recover. I'm not sure If I will be able to, but I'm going to give it my best. I'm 29 lost 1M+ over the last 1.5 years. ozzy P.S If I can't do it. I'll go back to my old career or teach english in europe. It's sad that its come to this but its not the end of the world. Life goes on.
Ozzy, I can relate but not to that extent. I took a hit 16 months ago, lost %40 of my acc't in three days, and haven't been the same trader since. Back in the good 'ol days a loss of thousands in a day meant nothing because i knew i would make it back. Markets have changed and i just can't seem to get my confidence back. I am much more risk averse now and seem to take profits rather quickly, knowing full well the stock will continue in my desired direction. I'm just trying to get an idea of how traders have handled it. Good luck!
If you new ''full well'' the move would continue, you wouldn't be taking profits! But you're right, everybody's complaining about the zig-zag moves and zero follow-thru and very few manage to make any profit at all. Maybe this is the market's way of weeding out many daytraders and hedge funds.
The markets have definitely changed, but I still see tremendous opportunity. In my case I know the problem is not with the markets but with me. If I have to take a break from trading that's fine it will most likely do me some good. But I'm sure I'll be back shortly thereafter. I don't quit easily. Also I know someone personally who blew 3M+ (95% of their capital) and then came back in about 1-2 years to make 1.5M. ozzy P.S I should make note that this period has been extremely difficult and I truly wish I had never gone through it.
When one recovering from a prop blowup, You should make your second time up risk adverse as much as possible I've been trading all year and I've lost around $-800.00 from all this trading
Ozzy's right, there are people making money consistently for the last several years so it isn't the markets. Good luck to all on their comebacks, I've been there and know it can be done.