Spreading a Loss

The thing that got me here was spreading

But for some stange reason I decided that was just luck

So the first thing I did was get long the Euro

That worked out horribly so like any good trader I took my loss

Now I am 100% short USD

And that is also working out to be quite bad

The first thing I learned when I was trading wheat corn and beans was

"Never Spread a Loss"

And believe you me

That's one lesson I will never forget

 

I had a lot of fun with the EURUSD pair today. Recovered 85% of what I lost after that sudded up and down on election night and next morning.

Forgive my inexperience, but what exactly does "spread your loss" mean?

 

it means when you are sitting long some DEC corn, and it keeps going down, you try to protect yourself by selling some July.

 

http://www.elitetrader.com/vb/showthread.php?s=&threadid=253019


I starting to believe you enjoy losing.

 

trading has been very good for me, and I never want to discourage anybody that wants to give it a try. I very rarely talk or brag about my winners. What's the point? Who does that help?

I talk about losers because it lets people know that I have them and how I handle them.

For me, losses usuallly occur when I put something on at the exact wrong time. And in most cases, the other foot also has to drop, in that I close it out and lick my wounds at the exact wrong time, just when I should be getting in.

The thing that keeps me alive is nothing more than experience, in that, I experienced what is was like to be absolutely sure I was right, and wouldn't give up come hell or high water, and even closed out all my winners to fund the one loser I was so sure was going to change everyday. And that is how I went comepletely broke and ended up with a real job (if you want to call being in business for yourself a real job, at anyrate, it wasn't trading, 9 years of that crap before I could build up enough (30k) and two years living expenses before I could start trading again.)

No, I don't like losing, I don't know anybody that does, it's part of the game. Different people handle it different ways. I like to see the humor in it all and bitch about it.

The important thing is to let it hurt you, but don't let it wreck you.

 

Then why start that thread in Trading that you're always losing money?

 

becuause that's all I do anymore. If I buy it goes down, if I sell it goes up. Like the man said, when you are wrong, not only are you wrong, but you are exactly wrong. I guess I could just sit here and take it quietly, but that's not my style.To bo honest with you, I know of no solution, but I know from past mistakes the worst thing to do is try to stop it by spreading.

 

So you used to be a great trader, and now you're a consistent loser?

 

I was never a great trader. I made a decent living, raised three kids, and supported a stay at home mom for 13 years on wheat, corn and beans.

 

Sounds pretty "great" to me. No sarcasm intended.

Maybe you should stay away from FX and stick to what you know.