About to blow up my account...help?

Julz said:
Oh well, it was fun while it lasted. I’ve banned myself from live trading for at least a year, maybe indefinitely.
More...

I did the same as you when I first started trading "it was luck".

I have advice for you it's simple using a daily chart use a 250 day and a 21 day average these will tell you the yearly and the monthly average direction. pay attention to 2.5% above and below the the 250 day average as momentum you can not fight.
 
Julz said:
Thank you everyone for your replies. I had been trading credit spreads for two years. I made thousands upon thousands of transactions and never once took a loss (rolled a couple things that always bounced back). So....I went pretty much all-in as the correction began. Fail.
I closed out today and am now lifting weights in the gym and thinking about what kind of job to get.
Oh well, it was fun while it lasted. I’ve banned myself from live trading for at least a year, maybe indefinitely.
More...


Rolling is loss avoidance. Sorry to hear. It's analogous to martingaling on the Don't Pass line. The probability is reflected in the credit. It's not an edge.
 
Julz said:
Thank you everyone for your replies. I had been trading credit spreads for two years. I made thousands upon thousands of transactions and never once took a loss (rolled a couple things that always bounced back). So....I went pretty much all-in as the correction began. Fail.
I closed out today and am now lifting weights in the gym and thinking about what kind of job to get.
Oh well, it was fun while it lasted. I’ve banned myself from live trading for at least a year, maybe indefinitely.
More...

If you think you've learned some lessons, though -- write 'em down, and right away. They cost you six figures. That's Ivy League, right there.
https://bennington.edu/admissions/apply/financing-your-education/tuition-and-fees
 
Julz said:
Thank you everyone for your replies. I had been trading credit spreads for two years. I made thousands upon thousands of transactions and never once took a loss (rolled a couple things that always bounced back). So....I went pretty much all-in as the correction began. Fail.
I closed out today and am now lifting weights in the gym and thinking about what kind of job to get.
Oh well, it was fun while it lasted. I’ve banned myself from live trading for at least a year, maybe indefinitely.
More...

That sucks, I hate to see fellow traders lose money, its not a laughing matter. 2 years is not enough experience to consider your self a seasoned trader. You sold too many spreads to try and make premiums in what you thought was low risk. The problem is black swans always come. You are better served doing small trades 1 or 2 contracts tops and then plan for the worst.

Hopefully you salvaged at least the 30k, work and save as much as you can and now you know to take prudent risk management in thr future to protect your capital.

To be a seasoned trader it takes a minimum of 10 years and experincing a few big corrections and trading through them or knowing when to step aside when risk becomes to great. There is no rule that requires you to have open positions all the time. Most trading should be planning ahead for all contingencies and trading accordingly only if it offers good risk adjusted returns.

Anyhow dont let this ruin your life eventually you will be back on your feet.

Why dont you post your trade, you could at least get some feedback, you can PM me if you want and I can see whats the deal. I can understand why you might not want to post publicly because some folks are real psycopaths and just like to kick people when they are down. But you can use this as a learning experience and get some feed back
 
Last edited:
destriero said:
Rolling is loss avoidance. Sorry to hear. It's analogous to martingaling on the Don't Pass line. The probability is reflected in the credit. It's not an edge.
More...

Yup thats why I cut on oct 10 and took my lumps instead of trying to roll forward. Too many new traders make the mistake of thinking they can roll forward a losing position and hope to make the loss back instead of facing the music and re evaluating the situation.
 
I feel for you man!. been there done that..I had to work a job for 1 year to re-member the real world implications of dollar value - income/living expense, etc, and slowing everything down. It helped with perspective on just how valuable the trading job is relative to any other job/career..
 
I'd be curious to hear where your strikes were? A bull put is supposed to be a limited risk credit spread...how'd you lose 80% of your account on them? Shorts way ITM and longs way OTM?

Am I missing something about what happens during assignment? I'd assume your broker sold the stuck you accumulated immediately following assignment?
 
IAS_LLC said:
I'd be curious to hear where your strikes were? A bull put is supposed to be a limited risk credit spread...how'd you lose 80% of your account on them? Shorts way ITM and longs way OTM?

Am I missing something about what happens during assignment? I'd assume your broker sold the stuck you accumulated immediately following assignment?
More...


Say you're short the put vertical. The thing goes deep ITM and you're assigned on your short put. You're still long the deeper put. The assignment results in a synthetic long call that's ostensibly worthless (long shares + long put). There is no risk to the assignment other than microstructure.
 
You must log in or register to reply here.
Back
Top