I still want to know what Broker he was using because if he was making money and suddenly started losing it ..there cold be more going on just Google - trader losses $120,000
EF/ Picaso Thank You Gentlemen Dr. E I also agree â GOCâs advice is solid Now can the OP follow it to the letter - ???? RN
http://www.moneyshow.com/video/video.asp?wid=6260&t=3 when he speaks of mindfulness and fear vs beliefs,the belief storage compartment can be cleaned out by forgiving all tresspassers and yourself so you are thinking clearly in the present......read your posts and you will see that this forgive ,forget and move on hasn't taken place,you are dwelling on it,you should refrain from trading until this loss is accepted as past fact,not good or bad just a fact and in the past,it's easier to forgive yourself when you haved cleaned out all the others that you hold regrets or grudges with,that baggage is akin to using all the memory on your computer and slowing it down ,.................. ,the fear is contained by habitually taking losses when wrong, losses can;t be avoided ,they can be painful, if that pain is tolerable ,meaning you safely get out for a predetermined acceptable amount, and if you've done it in a way that has become habit forming,you get a sense of palatable pain ,controlling this,or trading responsibly,reduces the fear of losing,which must be controlled to enter a trade,and controlled to stay in a trade
My current job barely pays enough to cover my expenses and there is very little job openings where I'm living. I was lucky to had even found this job. The economic climate today is very different from the 1980's and 1990's. Those two decades had a very strong economic expansion and one of the biggest bull market in history. This was the best time to try to learn how to become a trader as you had the cushion to get a job if you failed. I was fortunate that the last few years were mostly a bull market when I was learning. However, today is the worst time to try to make it as a trader. I started day-trading this year with knowing that it may be the last chance I had to make it. And the reason why I think this year is the last chance to make it as a trader is because I have a method of analysis that is forecasting that another crash like the '07-'09 is about to begin. I have strong faith in this method of analysis because it had been consistently successful in the past at forecasting major market turns and the magnitude of the resulting bull/bear market. For example, it was able to forecast well in advance the 2000 top, 2002/2003 bottom, 2007 top, and 2009 bottom as well as how far or deep the resulting rally or correction would be. Knowing that if another crash like 2008 happen, the unemployment rate would surely become much worst is why I stated that if I failed as a trader, I would not have a cushion in a favorable job market to land back on. Unfortunately knowing this putted much pressure on myself to try to become successful. That's why you see in my journal writing about why I needed to try to get the big hit when it would have been more sensible to take it slow.
"Clothes maketh the man", my mother often said. So it was inevitable, that one day I would meet, a well dressed idiot!
In my opinion it's very dangerous to focus too much on 1 idea. For your example it's a crash. I think we've all been there, and I sure as hell don't want to go back to that mindset.
what about set a stop loss level for each week,ie. 10%. that means if you lost 10% this week ,you stop trading in left days until next week
your question, "who has made it back from the bottom?" .... Indian born Professor of Naval Architecture, Mr. M, married to British wife J_Q, is now happily married and forgiven .... for what he said in a speech at a gala dinner 12 years ago "Ladies and gentlemen, I thank you from the bottom of my heart and also my wife's bottom"
There are many examples in trading literature of people blowing up small fortunes, learning from the experience and making it back. Jesse livermore did it a few times. Some of the Market Wizards said they blew up are initial success. The OP must mentally prepare for a long road ahead. His account needs to make 1000 percent to get back to its previous high. At circa 100% yearly returns it will take almost 5 years to get back to that high. He might get lucky and get back there soomer, but the odds are against it.
You need to completely re-build yourself after what has happened. The steps are fairly straightforward by require discipline to impliment. 1. Write down a comprehensive written in stone trading plan. 2. Back test the trading plan to prove its consistent profitability 3. include money management and risk control including the maximum loss per trade allowed 4. Make any required adjustments to the TP after back testing. Now come the harder part: 5. Go back to SIM trading to both forward test your TP and to rebuild your muscle memory as a trader, trading very, very small. 6. Once you have regained CP, transition into live USING THE SAME TP AND SIZE. 7. Once you have achieved CP live then look to SLOWLY increase size. Hitting milestones at each point will force you to meet your TP requirements. EL