blew my account can I ever recover?

B

bat1

No jokes please,

I lost 250K day trading stocks and I'm wanting to trade again and start over

however, I now have a deep fear of
losing it all again..

I wish I could forget the past and move
on..

Is it possible I could do better
the second time around?

I only got 40k to start over

Thanks for any helpful advice

Eddie
 
Quote from bat1:

No jokes please,

I lost 250K day trading stocks and I'm wanting to trade again and start over

however, I now have a deep fear of
losing it all again..

I wish I could forget the past and move
on..

Is it possible I could do better
the second time around?

I only got 40k to start over

Thanks for any helpful advice

Eddie
More...

Wow, thats really rough. My guess is that you had very poor money management and discipline. If I were in your position, I would first take some time to go over your mistakes. Avoid trading soon too, because you may revenge trade to make it all back.

One option for you is to continue trading when you feel comfortable again. You should trade extremely small though...100 share lots of stocks like XOM and 300 of stocks like BAC. When you become consistent (make money 75% of days) he can increase your share sizes to 200 XOM and 600 BAC. You should also just try to scalp and not try to hit big winners.

Another option for you would just to join a prop firm. You can easily get into one of those "broker" ones where you have to put 5,000 of your own money up. That way you don't put your entire 40K at risk. If you loss your 5K at the prop and some in commissions, at least you still have at least 30K left. Another advantage of a prop firm is that you will have a supervisor who will watch your trades and prevent you from blowing up on one trade (hopefully). There may also be some mentors there that you can learn from.

Good Luck!
 
Quote from bat1:

No jokes please,

I lost 250K day trading stocks and I'm wanting to trade again and start over

however, I now have a deep fear of
losing it all again..

I wish I could forget the past and move
on..

Is it possible I could do better
the second time around?

I only got 40k to start over

Thanks for any helpful advice

Eddie
More...

Part of personal development lies in realizing (and admitting) one's strengths and weaknesses.

It takes extreme maturity and will power to move on - but many years down the line - you might be glad that you did.
 
Quote from bat1:

No jokes please,

I lost 250K day trading stocks and I'm wanting to trade again and start over

however, I now have a deep fear of
losing it all again..

I wish I could forget the past and move
on..

Is it possible I could do better
the second time around?

I only got 40k to start over

Thanks for any helpful advice

Eddie
More...

No, you'll lose it all again. You admit your deep fear which means you'll be trading with scared money. Scared money will always end up in someones pocket. Move on!
 
Quote from bat1:
No jokes please,
I lost 250K day trading stocks and I'm wanting to trade again and start over
however, I now have a deep fear of
losing it all again..
I wish I could forget the past and move
on..
Is it possible I could do better
the second time around?
I only got 40k to start over
Thanks for any helpful advice
Eddie
More...

Your result is a product of your method.

Until you recognize your method is not producing the desired result,
you will not stop using your method...
and you will repeat the same result.
 
Quote from bat1:

No jokes please,

I lost 250K day trading stocks and I'm wanting to trade again and start over

however, I now have a deep fear of
losing it all again..

I wish I could forget the past and move
on..

Is it possible I could do better
the second time around?

I only got 40k to start over

Thanks for any helpful advice

Eddie
More...


how did you lose 250k in the first place?
 
Quote from bat1:

No jokes please,

I lost 250K day trading stocks and I'm wanting to trade again and start over

however, I now have a deep fear of
losing it all again..

I wish I could forget the past and move
on..

Is it possible I could do better
the second time around?

I only got 40k to start over

Thanks for any helpful advice

Eddie
More...

Hello Eddie,

In my opinion, there are two ways of looking at this situation....glass half empty vs. half full........but, first if I may:

1) You had a severe malfunction in money management, but I assume you figured this out by now.
2) My remarks do not take into consideration your personnel living expenses, family obligations, etc.
3) I do not trade stocks, only index futures, just so you know my bias.

Glass Half Full:
1) Life is a series of possibilities, potential and forks in the road. You have achieved something not many people can experience.....losing $250k and still retaining some potential. You have paid upfront for your education....now you must go to school. My advise would be to take as long as necessary and start a "forensic" analysis of your previous trading....trade by trade, tic by tic........analyze what worked and what didn't, what your strengths were and what your weaknesses are.
2) Based upon your "forensic" education, develop some strategies and trading behaviour that maximize what you have observed from your previous "education"....then trade small with tight stops...nail the entries or get out cheap...
3) Life is a great and precious gift, make use of it to the best of your abilities.

Glass Half Empty:
I will leave this for others to fill in.

Good luck to you, Eddie
 
I've always wondered where people come up with so much money to start trading with in the first place...

And secondly why they decide to trade such a large sum of money without having proven they can make money with a smaller account.


Anyways, best of luck. I would consider trading a smaller account next time before spending a quarter million just to find out you can't trade.
 
I agree 100% with the scared money theory... you absolutely cannot and should not try to trade under any extra pressure.

If you're completely committed to the idea of trying again, I would do the following:

- get a part-time/night/weekend job to take the pressure off

- review your past trades, study the hell out of your charts, read up, and develop at least some kind of edge. Seek 1-on-1 advice from a proven successful trader if necessary

- paper trade for at LEAST 3-6 months ... if profitable, start live as small as possible (100 or even 50 shares)

The main thing is you need to build up your confidence, so create a recipe for success by finding an edge and practice trading it with little to no pressure on yourself.

Best of luck.
 
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