Wow, -100% drawdown? That is a wipe-out. I don't see how that could happen. Remember these figures (draw-down and run-up) are percentages of the original account balance (not of the traded amount, and I do not trade with a leverage greater than 1.0 in a scenario that has a possibility of a 100% loss). Yes, I recognise that a -40% drawdown requires a 67% upside to recover. Of course given the two scenarios (I believe you are talking percentage based on amount committed to the trade), A is definitely preferable under any leverage. At the moment I could envisage an option position losing 40% or even 100% of its value, but I would not commit 100% of account to such a position!
Weekly Update for week 21 ended 06/06/2008 Deeply negative week, down 11K (7.8%). Nothing seemed to work this week. Started badly shorting ACOR. Not a wise decision. Lost 5K. Lost further sums on Wednesday and Thursday, recovering some on Friday. All in all it was a disappointing performance. Took out 5K for the month ended May 31st: first month worth taking out something from the market. The week-end break is a refreshing welcome. I need to set my house in order and commit to trading my plan. Code: Opening Balance: 141,294 Net loss for the week -11,083 Cash Withdrawal -5,000 ------------------------------------------------ Net Balance: 125,211 Number of Trades 22 Number of Profitable Trades 11 Since Inception of Thread 01/13/2008 - 06/06/2008 Opening Balance: 102,615 Net gain (Less Margin Interest) 27,596 ------------------------------------------------ Balance Before Withdrawal: 130,211 (Up 26.9%) Cash Withdrawal -5,000 ------------------------------------------------ Net Balance 125,211 Number of Trades 489 Number of Profitable Trades 276 Expected Balance at this time to be on track for Year-End Target : 288,290 Status: Behind Target (Based on adjusted balance before withdrawals) Top/Bottom Discretionary Trades for the week TICKER ENTRY DATE/TIME EXIT DATE/TIME QTY PURCHASE AMT SOLD AMT GAIN/LOSS TYPE MA 2008-06-03-10-38-57 2008-06-03-11-37-16 500 154745 156020 1244 LONG ------------------------------------------------------------------------- ACOR 2008-06-02-08-07-43 2008-06-02-10-34-04 3000 85800 80803 -5038 SHORT
Same amount of loss for me, but much bigger percentage of capital. I watched my losses grow right in front of my eyes, as if I were suicidal.
Sorry about your loss, Neke. What do you think that happened? Was it lack of tuning in with the market, a deviation from your plan...? Hey, at least you didn't short oil. Have a nice weekend, I'm sure next week week you'll get back on track. Best trading, Jorge
A lot of people had losses the past week. However, I have no regrets because I followed my trading system. But still, I'm really hating my 5% loss.
Maybe I should just say: Que Será Será. A little bit of deviation from plan - I could also say a little bit of deviation makes me money sometimes!
I read your thread where you are thinking of quitting. I know it may sound harsh, but one-year of trading is not enough to throw in the towel. Probably you started too big (with all the money you have). I was guilty of the same. Lost more than 50% in my first two weeks in the market. Still spent more than 3 years after trying and failing before hitting cummulative equity bottom after 4 years. The next year recovered all my losses and a good deal of extra gain, and have been profitable every year since. I assume you are doing this part-time. There is no reason not to continue with a little money, and try to solve the issues that are making you lose: staring a big loss in the face - very familiar. Hopefully visiting trading sites like this and others, maybe a mentor, could accelerate the learning process: I did not have such advantage in my case. As long as your good deeds (sticking to plan) outgrow your tendency to deviate, you should end up fine.
Weekly Update for week 22 ended 06/13/2008 An OK week, up 9K (7.2%). So much volatility in the market. Could be an opportunity if you plan your trades and trade your plans. Should have been a better week without that loss on Thurs on FSLR PUT. The conditions were not fulfilled for an entry: which makes it difficult to plan an exit; so got out on emotion, when the pain appeared. The week was a bit light on individual stock moves. Everything was dancing in line with the broader market. Hoping for better times next week. Code: Opening Balance: 125,211 Net gain for the week 9,061 ------------------------------------------------ Net Balance: 134,272 Number of Trades 16 Number of Profitable Trades 9 Since Inception of Thread 01/13/2008 - 06/13/2008 Opening Balance: 102,615 Net gain (Less Margin Interest) 36,657 ------------------------------------------------ Balance Before Withdrawal: 139,272 (Up 35.7%) Cash Withdrawal -5,000 ------------------------------------------------ Net Balance 134,272 Number of Trades 505 Number of Profitable Trades 285 Expected Balance at this time to be on track for Year-End Target : 302,825 Status: Behind Target (Based on adjusted balance before withdrawals) Top/Bottom Discretionary Trades for the week TICKER ENTRY DATE/TIME EXIT DATE/TIME QTY PURCHASE AMT SOLD AMT GAIN/LOSS TYPE MALFY 2008-06-09-13-17-12 2008-06-09-14-46-28 2000 20560 26400 5790 MA CALL ------------------------------------------------------------------------------------------------ HJQRY 2008-06-12-09-33-43 2008-06-12-11-20-51 3000 24000 19560 -4505 FSLR PUT