A lot of traders fail because they ignore the most important thing in trading. That is risk management. It does not matter if you have $1,000 or $120 million like Option Sellers. Remember that? Lots of examples of rogue traders who were left to their devices and again, no risk management causing their companies to go under or suffer huge losses. If you lose all your monies and blow up your account, it is game over. What are you going to trade with?
That is why Wall street bets have the right idea. Those guys save up and YOLO it all for 1 big trade. If they succeed they will never have to work again.
Risk management can only handle some risks. If you get hit by a real black swan it's GG. Even LTCM blew up.
It was 4 years ago (oh, I forgot to mention life-threatening illness which started right at the same time as my stocks were losing 20% a day... continues to this day - nice, isn't it?) but I am still ranting about it cause it changed my life and plans and put me in the hole I am in now, having to deal with bloody Topstep Sraders and similar shops - I am good at trading but lost my money in stupid stock "value investment" because I thought I need more to start trading full time. It is like a painter who just knows he is good at painting but the society and everyone around denies him the brush and canvas (prop firms and banks not even bothering to reply to your job applications) thus destroying his talent and making him a frustrated, anti-social individual like I feel I am becoming now...
Would you feel the same if you presently had $100k in your trade account and another $1 million sitting in your bank account? It sounds like classic under-capitalization to me. Sure, people with connections can make money out of nothing in comparison, but it's solely indirectly related to the above.
Of course I would feel better. Anyway, enough of venting my frustrations to strangers online - end of story.
Wrong guess. Hint - even the pope and bloody Leonardo DiCaprio themselves were against my investment. Now, that was pretty funny Even me subconsciously knew it was wrong but I was a "contrarian investor" back then... However, like I said - some well-connected hedge funds screwed the bond holders and stock holders, cancelled everything, the judge approved the scam, and now the companies WITH THE SAME HIGHLY-PAID MANAGEMENT are doing well, providing an essential service to the U.S. economy. Heck, even G. Soros was invested in this stock - it was not like I was investing in some start-up with no assets - but anyway, time cures the wounds pretty well so maybe in another 10 years I will forget about it. I am still alive, although with illness that can come back anytime. You see, if I had the same power as these funds who now own these companies, I would be in a different position - so, in fact, it was a GREAT INVESTMENT, just not for me but for those chosen ones - no justice in the world, I tell you...
OK, I will reveal it cause why not? Nobody cares about me anyway. ACI and BTU - most if it was ACI though. Oh, and Barrack Obama was also against me...