How to blow out your account, true story T.t
Well, First trade I set a stop at -45$, which is my R, and got out at -63$, market orders suck right? well the next trade I put a stop at -45$ again, and got out at -87$ !!!! Now that's pissing off!!
After I've had those two very traumatic trades, I wrote myself a memo - "Never trade in OPEX, Never trade in OPEX".. and kept trading.. well you don't really call it trading, it's more like "Revenge trading".. so at one point I was -400$, fucking frustrated, and feeling pretty useless at the time, in Israel it's about two weeks of minimum wage, I just wasted it in about half an hour, so.. I told to myself - "Well.. what have I got to lose? I've lost so much already.. let's trade saint..", so I initiated some "smart" trades, and got it to -234$ gross, and -270$ after commissions, which still sucks, but under the circumstances, I haven't got much to lose..
I'm sure I learned from the mistake, and added additional rule to my trading rules, which is to stop trading if you've lost the first trade with slippage, and I think I'll also add to stop trading if my mind isn't really focused on trading, and more focused on how much frustrating something (like losing 87$ instead of only 45$) is.
Now I've got to negative, my account value have dropped below where I started it back in May, 184$ losses.. well well.. I'm still learning.. I've also added money from my MBT account, to support higher R's, since I only plan to risk 1% max on each trade, and my account value is so small..
The good thing is that I still think positive, after looking at DT's blog, and seeing how some ACE is making 42K$ a day, I still believe that I could make a modest 1000$ a day trading, and be free from a day job, even after what happened today, ah and moreover, I wasn't panicked at any moment, the revenge trade have clouded my judgment, but after I saw how bad I really am doing, I started recovering a little bit.
BlowUp day today, I hope everyone else was doing great!
Good day,
Tomer
Ahh and for sure I'm taking a break tomorrow, to clear things out..
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3 comments:
well, well, well....
Blowups suck! BIG time...How do you make sure it won't happen again any time soon? Well, imo, you don't! unless you trade with a platform that knows how to limit you and just shuts down.
It is good that you are taking 2morrow off. Chill out and come back fresh next week.
You call that a blowup?! Amateur... j/k
Asaf-
Thx, I will try to stop putting my pride first, and just follow the plan, -3R and finish the day..
HPT-
Hehe yeah it's funny what I call Blowup, back in the days when I was trading futures blowup would me to lose 2K$, I managed to do that one day, like so:
1. I ordered pizza in the middle of the trading day.
2. Opened a position, long on YM.
3. Went to get the pizza, and eat it (while the position still open)
4. come back and realize that single trade lost 1200$, freeze, disbelieve, going down to -1400$, after a few min I sold it.
5. Revenge!!! buying bigger amount of contracts, making me lose 2K$ in total, I have print screen of it, I call it "the horror day" hehehehe
So yeah, I've got high standarts for "Blowup", I'm not willing to blow my account in one day..
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