daytrader loses it all.

Quote from cashmoney69:

What I never really understood is that, why is it harder to make money in a bear market than a bull market?..Is it because:

1. People have a natural tendency to go long?

2. The belief by the public that one cannot make $ in a bear mkt if their stocks are falling because they dont understand the concept of shorting.

3. Lack of volume or market participants

4. other (if so, what?)

thanks :cool:

cm
More...

That is a great question. I believe it is for many reasons. There is just something about the feeling of being short vs the feeling of being long. You can see the fear when people are short... just look at the bounce off the szone in the es today. You dont see a rally like that near highs, only a short covering rally moves like that. When a market moves down it also tends to have more volatile spikes to shake out the shorts, you have to pick your entries precisely or you will be victim to these wash outs.
 
This reminds me of my 'wipe' out 2 months ago. I lost nearly 50% of my trading account and it opened my eyes.

Learn a better analysis, money management, and the most important thing, control your emotions.

Now I'm gaining 30% in the past two months, not bad of a come back eh? Now let's see how I can keep my head cool and my emotions in check.
 
Nothing is new..

From an article in a pamphlet during the South Sea stock debacle in 1720.
Eyewitness to Wall street, p14
I heard the news of the South Sea stock rising to such a considerable height...and men of low degree being advanced to their coaches..But all of a sudden the scale is turned.. its fallen from 1100 to 300 and none cares to buy. Families have been ruined, brought to poverty, and turned beggars..
But why do I talk of South Sea only? Is not Missisippi stock as bad or worse? Are not Holland and Spain and others contriving to be at the same sport?
More...
 
The title of this post is wrong.(not just misleading).

If he had done day trading, he probably wouldn't lose that much. Day trading avoid gap downs.
 
I've heard of stories like this before. I know two people who lost almost their whole life savings, and a couple of others who lost a ton of money.

The problem is when someone confuses luck with skill. Anyone can make money in a bull market. After several months of profits, they believe they are special, then get overly aggressive, and when the market does a 180 (which it will, eventually), they get cleaned out.

I have been trading since 1998 and never had a month with a loss, but I still respect the markets. I think i've been successful because I'm a very cautious and conservative person by nature. Greedy people don't survive long-term in this
 
Quote from Hacksaw:

Bullshit.
More...
If hes a conservative day trader or even very short swing trader then this could easily be true. I aim to never have a day without a profit and seem to be able to do 7-10 in a row - then I make enough mistakes in sequence to reduce the euphoria. :)
 
You must log in or register to reply here.
Back
Top