i think failure is something every one faces even in business or trading or love affair Every failure is a next step to success as long as u dont make the same mistakes and errors I have blow my accout 2 times 1 ) trading Stocks 2) trading Futures But i have gained a lot of knowledge and experience and i am working right now 7 days cont 2 jobs so that i can save enough funds so that by next year when i start trading i should atleast start with $50K and have enought money to pay my bills for 6 months Hopefully 2009 i should be ready Trading is such a beautiful thing no boss no politics no timing no complain so nagging no bitching no abusing no yelling no bullshit Jan 2009
Sad to hear your story. I think it is something everyone of us can relate to. Separating the emotion from the logic is tough when you are losing. Buying at 77.68 and selling at 75.40 does not look so bad. It must have been the additional blunders :averaging in on losers, chasing trades and getting whipsawed with heavy leverage, may have added. I suffered something similar in May when a stock called ICFI released earnings and guidance. I bought after hours at above 25, saw it the following day pre-market slightly lower, and loaded up even more (not knowing it had just been downgraded). Closed the trade eventually at about $20 for whopping loss. It is pretty hard to think rationally when you hit something like that (my thread Taking 76K to 500K by Year End describes the others). It is important to take a deep breath like some have suggested, and see whether there are things you could automate. In my case, I know I might not win the fight against revenge trading and averaging in any time soon, so what I have set out to do is have a program that runs, takes orders from me and routes to my broker. The system will do everything to ensure the trade is proper (sizing, stops, no chasing etc.). I am also considering only short-term swing trades (1-5 days), so there is not the pressure to make decisions every minute: the longer the horizon, the less clouded the judgement.
Piss off. NY, we've all been there. Take heed to what Viper has to say along with all of the other constructive replies.
NY_HOOD "know i should'nt feel this way but i look at my wife and my children and think of how much of a failure i have become." No sir, I don't belive it. This is not magic or wizardry, it's technique. Take your time, work it out, and do it. If it takes ten years, that's fine. You can do it! Just don't think you have to do it now. Old musician joke: The tourist- "I beg your pardon, how do you get to Carnegie Hall" The musician-"Practice man, practice." Do you think it's any different for us?
Eh, like everyone else says, we've all had something like this happen. In my case, I get nailed every time I forget my allocations and buy or short some stock for larger than my standard percentage allocation. It's like the market knows when I make a stupid mistake like that, and proceeds to hit me square on the head with a big hammer. After the pain, I remember for a while, then I do it again, get nailed, etc. Of course I've gotten better and do it much less frequently now than before, and for far less than used to happen. Which might be the answer: whatever the weakness, just make sure that when it hits, the amount risked relative to the account size is not so large as to cause more than minor pain. It should sting, but not break a bone, or be a first degree instead of second degree burn. Something like that.
I like that quote. One of my favorites is; If you have a problem and money can solve it, then it is not a problem. Ny hood, I agree with Timmay, gotta do what you have to do to stay in the game.
NY_HOOD, I haven't had a chance to read through this thread, but I am certain the posts are very supportive. Don't think of it as the end and don't give up. Blowing up an account is just a step in life. With time and patience, you will get back up and keep climbing!
After reading this post, the most important lesson I think you need to learn is the old "Bulls, bears, pigs" adage. To me, it is the most important lesson that anyone needs to learn to trade profitably, more so than "the trend is my friend". Pls take this constructively. When following this, I have yet to blowup. If I deviate from it, I regret it. I would much rather make 20 dollars than lose 200.
Do you believe in Karma? Understand the term compassion? Blowing up only happens to two kinds of people, those that have and those that will. Peace to you as well...
I think we can all relate to this. Anyone that have truly ever done real trading has blown up at some point. I blew out 1/3 of my account in 4 hours a couple weeks ago. I actually think i learned my lesson this time but i still feel like I am bleeding to death right now. We all know how you feel, a break is probably good for now.