Yes, that's why it is funny, because you identify with his mistake, his pain, and his reaction. I sure did.
I feel for those traders who got their lips ripped off with all the recent volatility - but they all seem to have that deer-in-the-headlights syndrome. My advice - don't just stare at your losses cursing the markets - Think. Try to trade out of a bad situation. If you're caught long and the market is tanking, go short on a highly correlated instrument and vice versa. E.g. long ES vs Short YM. You won't make money this way, but at least you can stop the bleeding ...
so rogue trader in frog country caused daytrader in the US to blow up, and uncle benny to hit the 'uncle button' by cutting 0.75 wow, this is NY times bestseller material
Are you a broker? Aside from generating additional and unnecessary commission expense, how is this approach any better than just exiting the losing position?
I think what Bob is trying to say that one can stop bleeding by taking a stop loss (closing position).
I'm a futures trader - commissions are peanuts (~$10/ emini contract roundtrip) compared to the type of losses these folks are enduring. Obviously the better thing to do is cut your losses before things get out of control. However, if you somehow find yourself looking at a runaway market and you're on the wrong side in a bad way - you need to do what you can to avoid the dreaded margin call. At the very least, going market neutral gives you some time to gather your thoughts. Panicking and closing your position at the bottom or top (or being forced to do so by margin call) is a quick way to the poorhouse.
It does seem to me that in a choppy market (like we have today) going long one futures option and short another does allow you to perhaps play the ups and downs ...haven't tried it myself wonder if those who do actively trade futures do it. like right now the EB is weak and ES strong...buy one ES and sell 2 EB...which gets you close to flat but with potential.
To each his own, but I disagree. If you have a plan before you enter the trade then your stop should be set. Why take another position to gather your thoughts?