Blown up and Devastated
- Thread starter giannos
- Start date
Well my account was 5k prop and its not the money that pisses me off, ( and yes thats a blow up )..just the mental breakdown....But I suppose you know what your doing so feel free to PM me with your brilliantness.......I guess having over a 5-2 win ratio mean I know jack.....?....As Chewbacca stated I entered the I dont give a F*ck state and I did DESERVE what happened to me....I added to lossers.....and paid the price......
Quote from adamcholeva:
You are very right. I do take a smaller R:R then suggested and do it over a large sample of trades daily with very very low cost. This is not recommended for the OP though given his situation. The advice is to direct him towards trading smaller and choosing better trades with a lower daily limit. Once he has built up equity and understood himself, then it is possible to take more risk. What I do is not recommended for everyone. I would never put one of my traders in front of the market trading my money to have them duplicate what I do. Also, my position sizing increases tremendously when trades go my way while the risk decreases. This is why I prefer to scale in and use "feeler" trades to open a position. My default size is small, but I click a lot when I'm right.
I can tell you though... in this low volatility/low range environment, my style is becoming more and more extinct. This is my reason for finding ET. I came here seeking ideas to evolve and to try to hold good trades longer. My return is very good doing what I do, but I want to stay on my feet and evolve into not relying so much on tape reading, etc and more on technicals.
omniscient
Guest
i don't know if anyone already posted a link for POP, but here's one:
http://www.futuresmag.com/futuresclassroom/phantom/phantom.html
and there is a PDF version over at Nqoos' site (http://www.trading-naked.com/Articles_and_Reprints.htm)
http://www.trading-naked.com/library/Phantom_of_the _Pits.pdf
hth
take care -
omni
http://www.futuresmag.com/futuresclassroom/phantom/phantom.html
and there is a PDF version over at Nqoos' site (http://www.trading-naked.com/Articles_and_Reprints.htm)
http://www.trading-naked.com/library/Phantom_of_the _Pits.pdf
hth
take care -
omni
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Yes;
Yes, thats a load of info, inflolode.
What strikes a chord with me about your story is that I really like your strategy (I did the same thing on MSFT, but for a week to a month hold,) but let me explain why I think you were turned around:
1) MSFT was going to be under pressure this whole week due to the SP rebalancing. An obvious daytrade each day was to sell into any .05 to .10 spikes and ride it down for a .10. I did this early in the week as intraday trades. As the week wore on, late in the week I shifted from intraday trades on MSFT to acquiring it slowly for a multi-week swing. You see, if you were never going to hold MSFT for say two or more weeks (and probably at least a month) why would you ever come into the day averaging down into a long position that is going against you relentlessly with the hope of making a profit that day given the fact that MSFT would be under pressure the whole week? You see what I am getting at? Your strategy did not fit the time frame and the "macro view"! You came in with an idea (which I like in the right time frame) but did not take note of the environment in which you were implementing that idea. You were turned around both in your time frame and in your direction of likely movement intraday. Rarely are things this crystal clear in the markets and it was a great opportunity to make money hand over fist. When people talk about "pockets of inneficiency," these rebalances are the mother of all pockets.
2) To beat a dead horse over the head, my guess is that you were trading about 10 to 20 times the size you should have been trading, especially on Quad Expiration week where stocks make all kinds of strange and counter intuitive moves, unless you have something like SP rebalancing that makes things clearer.
nitro
1) MSFT was going to be under pressure this whole week due to the SP rebalancing. An obvious daytrade each day was to sell into any .05 to .10 spikes and ride it down for a .10. I did this early in the week as intraday trades. As the week wore on, late in the week I shifted from intraday trades on MSFT to acquiring it slowly for a multi-week swing. You see, if you were never going to hold MSFT for say two or more weeks (and probably at least a month) why would you ever come into the day averaging down into a long position that is going against you relentlessly with the hope of making a profit that day given the fact that MSFT would be under pressure the whole week? You see what I am getting at? Your strategy did not fit the time frame and the "macro view"! You came in with an idea (which I like in the right time frame) but did not take note of the environment in which you were implementing that idea. You were turned around both in your time frame and in your direction of likely movement intraday. Rarely are things this crystal clear in the markets and it was a great opportunity to make money hand over fist. When people talk about "pockets of inneficiency," these rebalances are the mother of all pockets.
2) To beat a dead horse over the head, my guess is that you were trading about 10 to 20 times the size you should have been trading, especially on Quad Expiration week where stocks make all kinds of strange and counter intuitive moves, unless you have something like SP rebalancing that makes things clearer.
nitro
Quote from giannos:
Well today I offically became a statistic....I have joined the 95% of traders who fail ....My story begins like this.
I was a product of Swift trade a while back and moved on to bigger and better things....Rebating just wasnt for me...I joined a prop firm and have been trading with them for the past 4 months....Yesterday AMAT ripped me apart and today it was MSFT.....I was long MSFT and geting wacked, slowly my losses added up...I was scaling my position as I did want to eventually have some size....But it was on the downtrend....At this point I was long 7000 shares at 26.13....It approched 11 a few times and would not break through...I was just hoping to flaten out and re-think my entry..I was gonna scrap it at 11 but to late, now its at 07-08 and im down alot...so I held.....Then I kept holding when it was between 02-05...At this point I was more than ready to bail...But looking at my blotter and praying to the God's, I couldnt pull the trigger....So locked and loaded I bail at 25.97...If it drops below $26.00 I remeber thinking that it could find its way down another 20 cents....Now it rallys some and it is finding resistance all the way up...I look over the chart for the 100th time and tell myself your fighting the trend...Now I decide to go short, 7000 short at 06...Now it starts ripping up and I have no choice but to get out of the way at 16....It goes to 25 and then tanks to 01...WTF?.....Long or short the market took my dumb money and I am left wondering what went wrong....Had I held longer I would have been up over 2k, had I not paniced looking at my blotter I would have bailed along time ago and maby would feel better about myself right now......So many questions as to WHY did this happen or why did I do this ????
I love this business and am wondering how I can recover from 2 days of hell
I suppose I expected to blow up sooner or later, but a part of me wanted to think that I could be exempt from the 95%.
How do you pick up the pieces and regroup?
How do you carry on?
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Gianos;
You may have noticed I mentioned that my timeframe may be longer than yours on shorts/longs;
for sure it is,
because on even on shortest swing trade,16 cents or even 26 cents stop loss on MSFT would be noise/not productive.
Not likely if i told you my stop % it would help your shorter time frame;
but pay attention to 20 ,50 day moving averages can help you lots.
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And the main points , were while your long entry was excellant ,
friday 1;50 or 2;00 approximately chicago time afternoon
,excluding MSFT weakness for most of week.
Actually for the past week MSFT, some major airlines were weak,
much lower probability of long profit, compared to QQQ,SPY,DIA,LUV, friday.
Thanks for you feedback because you may want to study this whole post, not just read it;
I am afraid you havent understood what I am saying about probabliitiy of profit, with 20.50 day moving averages.
And may want to study big, big ,big difference between MSFT above most of simple ma=long;
contrasted to MSFT below most simple ma=short.