First of all, to this trader...sorry for you loss. I hate to see anyone who loses big in this game. Secondly, it was bound to happen; sorry Don you should have prevented his loss. You have been in the business for MANY more years than I have (10 years in November for me). How many times have you seen this happen, where someone gets on a roll only to give it back? Especially trading on something HIGHLY speculative. Sorry but this isn't trading. It's purely gambling. However, I can see where someone would see commonalities between traders and poker players but this is a different game. But I am confident this person won't last another year, just because they can't change their mindset. (Don and his brother are exceptions). Some will agree some won't but money management of a poker player is much different than a trader. In a tourney, I believe you can't lose more than what you have, not the same in this game. The bottom line this trader will continue to gamble with your money until you don't let him anymore, which is probably a good idea to stop this relationship right now.
As a member of our "limited liability company" our traders are, in fact, "limited" to what they have in their sub accounts. We have had, maybe, a half dozen over the last 16 years who have left owing us any real money....most have made good on their losses and kept on trading. But, to be perfectly straight..."we are responsible for any excess losses" (unless there are rule violations or something like that). Don
Don is it not frustrating to go to work ( day trade ) every day and then 1 day to give it all back I mean since you are a part of a large firm what would be you advice on it For me i trade part time i make some $ but the market take it back from me How should a person be mentally ready cause it is very frustrating and wast of time and money What is you advice on it - ????????????????????????????????????????????????????????????????????????
FWIW, we have modified our risk controls as they pertain to BioTechs, much like we did in the 1990's with Internet stocks. A small hit like this will likely save our traders money in the long run. All the best, and thanks.... Don
I can't really comment about a "typical shop" ...mainly because there aren't really any "typical shops" around these days. Several different models, this is ours. Don
Every trader is different....and, don't for a second think that what happened with Brandon had anything to do with "day" trading. This was position trading, pure and simple. As in any business venture, trading will have ups and downs... the longer you're involved, the more likely you will have more ups than downs (or you wouldn't still be here). With hundreds of traders who do well, all I can say is that they wouldn't think of doing anything else. I'm often accused of speaking to high about trading for a living, which I do because I believe in it...but, and a big BUT, is that it takes a bit of work, not just diving in with some basic idea of how play the video game of point and clicking. It's amazing, those who seem to work harder, actually seem to do better, "whoda thought" eh? IMO, having a "job" can be just as risky as starting your own trading business...one day you're working, next day in unemployment line. All the best, Don
instead of wasting time speculating what a trader cost bright how about talking about subjects that affect your ability to make a living. http://www.elitetrader.com/vb/showthread.php?s=&threadid=134357