Kon,wasnt referring to you at all.... Its "disturbing" to see all these keyboard warriors spew trading 101 at a guy who has the balls to lay it all out there for all to see and attempt to make 10 fold on his money..... Its like going into the ring with the heavyweight champ of the world and telling me to keep my hands up,chin down and dont get hit..
Get to know this guy, b/c he is saying max dd is 10%... on 1 trade. He knows his shit. You've got a good friend. I hope you kept in touch.
Not entirely accurate, but this is a historic case of happening to MVP-3 where an enormously large "institutional order", mostly from the same brokerage firm dumping millions of shares of a sub 500k volume stock on either MVV or MZZ, I can't remember which because the effect is the same. That's the only "bust" I've heard about in what is essentially a "swap contract" that even with that many share sizes the trader probably realized he was a dipshit and just should have hedge with a swap directly. Too bad ETF's have the decimilization limitation, but I think next level trading should offer an infinite number of digits of pricing, don't you think?
Or more shorting. When will the investing public understand when 17% of the float is short, there's almost definitely insider information involved. Don't lose sight of that. As far as research goes, being a financial analyst is about "making time to listen and read" to form an opinion with a reasonable basis under theoretical puzzles called "The Mosaic Theory." The irony is that anyone with even 1 share in the company can request the complete information pack and slideshows and even actual conversations with financial analysts. The investing public then forms their opinion by factoring an "unknown inefficiency" of mispriced nonpublic information. There is nonpublic information that may or may not be "relevant", so knowing that Hank Paulson had lunch with Citigroup the night of the bailout doesn't have anything to do with problems at that company... or does it? If there's even a doubt in an analyst's mind, they simply watch for the market's move and keep track of "institutional block volume." This lead to VWAP and the idea that a "market depth charge" of selling is not necessarily harmful to the investing public at large.
absolutely agree, BUT: When you actually hit such draw down you need to adjust your position size, tighten stops, slow it down to avoid a complete wipe out. Every experienced trader knows that, unless you treat trading as a complete gamble there is no other choice, sure it takes longer to make it back. What you suggest is to continue with the wild ride. Neke has the free choice but best advise is to adjust to the new account level.
beautiful, so true and applies to almost any wealthy investor/trader. Name someone who really made it in this business by risking 10+% of his account on a daily/weekly basis. I claim there exists none.
You seek to prevent this drawdown from becoming a blowup??? Hate to inform you but you blew up the week you drew your account down 10%. Step back, take a look at what caused all this and STOP doing it! It is that simple. Trying to get back the 44% drawdown with homeruns is not the way to go about getting back on your feet. It is singles that will get you back on your feet.
Ok, gotta clarify - you consider any draw down of 10% or greater a blowup?? Seems to me a tad on the side of ignorance.