Video of a trader blow up Today, NSFW lol

I am confused. Why would he want to hedge his position? You know the way to perfectly "hedge" the position that you are getting shafted by? You get out pronto. No need to hedge. I could be wrong, but he could have just exited the position at anytime. It wasn't like the contract he was in was not trading.

Or are you saying it is easier mentally to hedge the position with another position just to make your life more complicated and to give away more in commissions?

 

From the reaction on this thread, it seems like this guy needs to capitalize on all the web traffic going to his blog. Hope he gets a lot of ad-click through revenue to make up some of his losses.

 

This video should be required viewing for all new traders.
Or anyone who trades without stops for that matter.

 

he was long 10 ER2.

 

That makes me sick. I feel like MY world is ending to. Great public service announcment. I've been trying to trade for a while now, but look at the market like training a wild lion. The most likely outcome is to have your arm ripped of like this guy.

 

Its not my position so I can't really say what he should have done. I find it easier when I get drawdown to stop the bleeding immediately. Also I have no idea why he entered the trade. I mean he thought the market would rebound but what was the uncle point on the trade. 10 er at $10.00 per tick is $100.00 per tick, so ten ticks is a grand. One of the reasons new traders should have simulated accounts is so they learn how to execute trades and realize that poor execution is painful even in the best environment. By execution I mean errrors, slippage, not getting your price, spread, etc. All the screw ups that occur outside of being wrong.

 

This is what he wrote on his blog:

He was clearly gambling in order to make up for a bad day. This is the worst type of behaviour a trader could display and it blew up in his face. He didn't even decide to gamble with the trend.

 

You nailed it right on the head. He was going for a Hail Mary pass to make up for not taking the losses on Friday. Desperation lead to Gambling.

Been there, done that

But can't bring myself to laugh at the guy. It's about as funny as a snuff film.

 

So.. how about helping the guy and steer some more traffic over there..

 

I think he averaged his ER2 losers on Friday and when he didnt get a chance to get out at Break Even he held over the weekend.