Who can lose $1,000,000 in 3 months?

Discussion in 'Trading' started by granville, Aug 28, 2006.

  1. katesdp

    katesdp

    A reader worries his father won't give him any more money upon hearing the last gift went toward commodity futures instead of stable mutual funds.

    NEW YORK (Money) -- QUESTION: I am twenty-three. Two years ago, to encourage me to start saving and to learn about investing, my father gave me $10,000. He thinks I put the money in the mutual funds he recommended. But actually, I lost all but $2,500 speculating in commodity futures.

    http://money.cnn.com/2006/08/28/pf/rightthing.moneymag/index.htm?section=money_latest
     
    #11     Aug 29, 2006
  2. Do you mean losing it on purpose or losing it by trading the market normally?

    Anyway, if u mean to lose it on purpose, it's quite simple. You can buy any stock, let's say IBM. You buy 12500 shares of IBM at 80$, and offer it back to the market at 0.01$, You will lose almost all your million instanteously, lol.

    Losing it by trading the market normally. Well, it depends your skills. Somehow, I think we are disavantage in the market. Whatever you lose will to transfered to the broker, ecn, exchange, regulatory institution....and other traders who gain. We are just amoung traders, no matter we make it or not, other participants get paid over us.
     
    #12     Aug 29, 2006
  3. Current regulation implies that you cannot get filled outside the NBBO, so your 0.01 offer will get filled at the market not at .01... you have a better chance of losing a million bucks by trading some dry stock where you actually move the price to 0.01...
     
    #13     Aug 29, 2006
  4. #14     Aug 29, 2006
  5. ok ok ok ok ..... Sure, you could eat it all away on commissions and hitting the bid/offers and such. But aside from that obvious approach, an ability to consistently pick losing trades can be reversed to produce winning trades.

    The assumption here is that any method that consistently loses cash can be reversed to make money.
     
    #15     Aug 29, 2006
  6. Commissions and spread aside, this is correct. If you can consistently lose a greater sum per trade than you pay in commissions and slippage, then you can reverse the buys and sells to generate a winning strategy for that time period. Note: time machine not included.

    -Raystonn
     
    #16     Aug 29, 2006

  7. How much money do you make with your philosophy that any solid money making method can be broken down into 1 simple method?

    Would you share that one simple method with us, so that we can all make money?

    How much have you made with this?

    Thks for sharing.
     
    #17     Aug 29, 2006
  8. #18     Aug 29, 2006
  9. Ripley,
    If you had reversed your trades this year, would you be at > 50% return?
     
    #19     Aug 29, 2006
  10. na... reversing never work. I might've lost all my money had I done that.
     
    #20     Aug 29, 2006