Fair disclosure

gunner_trader · Jan 4, 2022

I made a post about avoiding trading mistakes and those rules work very well. Fair disclosure, I lost about $1200 the past two days. The reason I am posting this was to let new traders know that no matter how disciplined you are, losses can still happen.
How did I lose? I put in a stop limit loss and my stock went right through it. That normally doesnt happen but it did today. The stock symbol was MNDY.
What was my mistake? Low volume stock.

Overnight · Jan 4, 2022

gunner_trader said:
I made a post about avoiding trading mistakes and those rules work very well. Fair disclosure, I lost about $1200 the past two days. The reason I am posting this was to let new traders know that no matter how disciplined you are, losses can still happen.
How did I lose? I put in a stop limit loss and my stock went right through it. That normally doesnt happen but it did today. The stock symbol was MNDY.
What was my mistake? Low volume stock.

Indeed. So you broke your own rules...

https://www.elitetrader.com/et/threads/valuable-lessons-learned-from-trading.363862/

"I dont trade low volume stocks."

You didn't lose because you put in a stop loss limit and the price moved right through it. You lost because you broke you own trading plan.

xandman · Jan 4, 2022

Oh MNDY

Well you came and you trade without taking....

OptionsOptionsOptions · Jan 4, 2022

gunner_trader said:
......I lost about $1200 the past two days......

Is that a typo .....Perhaps you meant to type $12,000?

gunner_trader · Jan 4, 2022

Lol..
No $1200. I would never let myself lose 12k.

OptionsOptionsOptions · Jan 4, 2022

gunner_trader said:
Lol..
No $1200. I would never let myself lose 12k.

IMO ....... A paltry $1200 loss does not merit a thread on ET.

gunner_trader · Jan 4, 2022

OptionsOptionsOptions said:
IMO ....... A paltry $1200 loss does not merit a thread on ET.

true. I only did posted it because I didnt want my original post to imply I never have bad days.

maxinger · Jan 4, 2022

gunner_trader said:
I made a post about avoiding trading mistakes and those rules work very well. Fair disclosure, I lost about $1200 the past two days. The reason I am posting this was to let new traders know that no matter how disciplined you are, losses can still happen.
How did I lose? I put in a stop limit loss and my stock went right through it. That normally doesnt happen but it did today. The stock symbol was MNDY.
What was my mistake? Low volume stock.

strange ....

did you short it 2 days ago?
did you set your stop loss too small?

you should have been profitable if you set your stop loss further away.

any MNDY movement is rather choppy.

maxinger · Jan 4, 2022

OptionsOptionsOptions said:
IMO ....... A paltry $1200 loss does not merit a thread on ET.

well. it depends. if OP has $2000, losing $1200 is extremely high.

if OP has $1billion, losing $1million is negligible.

ValeryN · Jan 5, 2022

Losing 20k is a statistical noise for some of us. Won't even bother to look at. Absolute $ amount doesn't mean much like others pointed out, drawdown % vs max expected does.