The most expensive lesson you have learned in this business...

Discussion in 'Trading' started by earlybirdstango, May 21, 2006.

  1. Doing the obvious consigns you to the results of the mediocre...
     
    #21     May 21, 2006
  2. My account was $200k at the time, margined 10:1 so I lost "only" $100K from that nightmare. Worse, I had only been trading three months and thus didn't have a clue what I was doing. I spent the next 18 months in revenge mode, trying to get that money back, and lost another 50K in the process. But that 50K process provided numerous lessons that became strategies, which have kept me profitable ever since.
     
    #22     May 21, 2006
  3. Most of my mistakes were of omission instead of commission...
     
    #23     May 21, 2006
  4. KMAX

    KMAX

    Hi everyone, this is my first post.
    The most expensive lesson was not having a plan and throwing
    75% of my account into mostly tech stocks in 1999.
    The techs started to fall and i held on hoping things would turn around and of course they didn't.
    That was about a 15k loss.
    It took me years to recover to the point of having any interest
    in trading again.
     
    #24     May 21, 2006
  5. Loading up on Q's on the Island ECN after the first plane hit...
     
    #25     May 21, 2006
  6. Letting a loss ride and out of control until you are forced to bail.
     
    #26     May 21, 2006
  7. You lost 100k, he lost 1.5MM

    http://www.elitetrader.com/vb/showthread.php?s=&postid=731021&highlight=infamy#post731021
     
    #27     May 21, 2006
    • Undercapitalization
    • Gambling
    • No Plan
    • Too high Expectations

    I have done them all !!!!!

    I learned:
    • Use a microscopic amount of your capital to trade, but evaluate the yield too..is it worth it? if not, its not a good system to spend your time on.
    • Lower my expectations. I learned that I am just as satisfied making 30-100% a year trade by trade, rather than all at once. Having expectations and a vision is good & healthy so do not limit yourself either. It just that many singles are better than a few homeruns.
    • Follow my plan and recognize early when my system ceases to work.
    • Trading can be "not Gambling"


    Michael B.





     
    #28     May 21, 2006
  8. Having ANY expectations when you first get into this business can be a real morale killer *but also an ego killer as well, which is good*, you have to be strong to pick yourself back up after being proven that it was as difficult as you thouht it might be..... but is much MUCH harder than that even and requires a long term commitement.


    Getting into this game for the wrong reason I think could be the most expensive lesson you can have, happen to you and that goes mainly to the gamblers.
     
    #29     May 21, 2006