Why Is The Obvious Not So Obvious?

Discussion in 'Risk Management' started by nysestocks, Jan 25, 2009.

  1. J_Smith

    J_Smith

    SC, if you want to make any real progress, you have to be honest with yourself.

    When you have your first losing trade, that is bigger than you had initially intended, post what way you really feel, and how you are acting.

    No one will laugh at you for getting it wrong, in fact, if you do what I say you will be commended, as most are afraid to tell others they have just made a stupid mistake, and will therefore keep making them.

    Back in 2007, when it happened me, I barely slept the night before I closed all open short put positions, and I will never forgot the feelings, with thoughts of losing 100k sterling the following morning.

    When I made the phonecall, and gave back just over 17k sterling within 1 minute, it was like a weight was lifted off my shoulders.

    Facts are, I overtraded, panicked, and did not fully understand how to adjust losing option positions, which I now know how to do, but wish I had made it my business to find out back then:rolleyes:

    Anyone can make money trading, providing the understand and accept the facts. How much you make, will depend on how much you have, how good you are at reading charts, your risk approach, and your commitment to hard work for to gain the required experiences.

    You (general) do not need anyone else, but you do need to act like an adult, and not like a child!

    J_S
     
    #5071     Feb 23, 2016
  2. J_Smith

    J_Smith

    Today is going to be very interesting, as I have seen these patterns before.

    Futures drifts and returns to previous days close just prior to US open, and with big reports due out at 10.00, we might see smaller than usual movements at the open.

    It can, and will, of course do what it does, but I would not be any bit surprised to see an initial rally if news is good, followed by a big pullback.

    I am still trying to decipher SPX & SPY OI, and still asking an expert to post some details, as from my looking last night, based on current OI ( which of course will change with volume traded), the SPX looks like heading south before friday, but this could all change after 10.00 today?

    Let's see what actually happens, and try understand why, and see if it is all down to "news"!

    I have bought some ES puts, just in case:)

    J_S
     
    #5072     Feb 23, 2016
  3. Vindago

    Vindago

    SC, JS, I had some big losers last year, more than one even if not as big as 17KGBP singularly, thing is it took me more time than it should to learn the lesson (still learning it by the way) as getting winner trades is super easy, in fact most of my trades are winners, but then if you get one big loser even if only every few months it will still wipe out all the previous winners...

    I would be surprised if any trader that has been around any amount of time did not go through the big loser experience... What matter is how well and how fast you start protecting yourself and stop having these monster losers, at least this is the challenge for me.
     
    #5073     Feb 23, 2016
  4. Mysteron

    Mysteron

    I'd be very suprised if anyone on ET has not experienced a period of stupidity and ignorance leading to an eye watering loss. My first venture into share trading was around the year 2000, which was in owned shares. Initially there were modest gains and losses and then I had the bright idea of buying shares in the company that I worked for, namely Marconi. I think I lost over £10k by simply clinging on in hope and not getting out and accepting a small loss. At the time it was inconceivable that the company could fail as it was previously so strong and the defense division that I worked for was thriving. The share price fell dramatically and when it went below £1 I recall overhearing one of the senior managers saying that he was going to buy some more shares at that point. Fortunately the defense side of the business was sold off and my job was secure, and despite the loss I didn't have any debts or financial problems.

    http://www.telegraph.co.uk/news/uknews/1339789/Marconi-from-boom-to-bust-in-a-year.html

    Marconi: from boom to bust in a year
    THIS time last year shares in Marconi were worth £12.50 but yesterday they fell to just 29p. Dan Sabbagh and Sean O'Neill report on the boardroom blunders that turned a world-beating industrial giant into a basket case.
     
    #5074     Feb 23, 2016
  5. J_Smith

    J_Smith

    All part of life experiences, and unless you take the financial trading carrer path, then one needs to do the required homework first.

    Advertising is used to get people to part with their money, very effectively, so learning to avoid impulse decisions is a key factor in learning how to hold on to money.

    ES behaving as expected.

    Let's see what the news brings!

    J_S
     
    #5075     Feb 23, 2016
  6. J_Smith

    J_Smith

    Screenshot_2016-02-23-15-06-38_1.jpg J_S
     
    #5076     Feb 23, 2016
  7. SkyChef

    SkyChef

    I'm the person today not because I've won but because I've lost. Since this is the internet, I won't disclose the details, but I do understand (internalize is a better word) the suffering by loss.
    I used to be very abusive, talkative, manipulative but the 2 losses I've suffered have changed me forever. Some might called it being tested and it's not very pretty.

    However, I do appreciate of your (plural) supports for my journey into my last challenge.
     
    #5077     Feb 23, 2016
  8. SkyChef

    SkyChef

    Entry 1925. All parameters have been defined right after the move up from 1919 to 1926 barely started.
    I still need to work on reaction. Target is place holder. Still need to work on target.

    PS: Currently, I'm just experiencing all in/out. I will work on free trade later once all the kinks/rusts are out of my brain.
     
    Last edited: Feb 23, 2016
    #5078     Feb 23, 2016
  9. SkyChef

    SkyChef

    Nubie mistakes. And the important of correct entry. It's different game now.
    PS: Even if the trade is profitable, it's still incorrect in term of target & TF execution.
     
    Last edited: Feb 23, 2016
    #5079     Feb 23, 2016
  10. You set up "private" groups from contacts on elite? You should pay Baron as a vendor. Otherwise you should be banned stealth vendor!
     
    #5080     Feb 23, 2016