Have you ever blown up your trading account?

[The Big D]

Quote from M3peat:

Well, for me it was several problems moving from sim to live. First off, there are definite emotional issues with being able to pull the trigger when real money is on the line where with sim I had no problems pulling the trigger. I also had the idea that I would be able to start trading with 3-5 contracts, which I definitely did not and do not do yet. I also, as I'm sure others new to this did as well, took chances I shouldn't have while in sim.
My mistakes probably apply to people having no prior trading experience. My related prior experience was investing which is totally different than trading, as I've learned.
I know of two other friends of friends who are also struggling since going live, so it's not just me, not to mention many posts I've read here saying similar thoughts.

I'm not saying it's a fact that my problems will occur with everyone but they are somethings to consider when starting out.

If you are saying you went straight into live making money, more power to you but you are the exception, not the rule. Hence the majority of traders fail theory.

I think part of the distinction is the difference between discretionary and system trading. If you're trading a well defined system, the move between sim and real money ought to be at least somewhat painless because the system itself should remain unchanged (again, assuming you're not moving volume). If the system is implemented via computer, it should literally be the same code.

If the system is implemented by hand, and you find that you were able to follow the system in sim, but not in real money, you may not be cut out for trading. I don't mean to be offensive, that's just how I feel - if you don't have the gumption to do what you say you'll do, this is a bad business. One option might be to code the system up so the computer will do what you psychologically can't.

Discretionary traders have a MUCH harder problem when they move to real money. Since there is no system, they have no idea if they're doing the same thing in real money that they did in sim. I think all discretionary traders have to have a very big ego, and very good skills to succeed. Especially if they trade on a short horizon and make lots of trades. Frankly, discretionary trading scares me, and I probably only make an average of one non-system trade a year because of that.

 

[saliva]

Big D, those are all valid points with one exception: you neglect to mention that you must have a good working system in the first place. After all, the computer only does what it's told. As such, to assume that a mechanical trader is a better trader than a discretionary trader is an overkill. I'm of the opinion that you cannot become a successful mechanical trader without first being a great discretionary trader.

 

[Thermactor]

Anyone who voted yes to the last option is lying

 

[rallydog]

When I first started trading in the early nineties (1990's ; I turned 10k into 50k in six weeks then lost it all in the next two weeks. Holysh*t! :eek:

When the bubble popped in 2000, I lost a million bucks. 2x Holysh*t!.

So what did I learn from all of this? I fired my brokers and learned how to do this for myself. This time I saw it coming by the end of 2007 and had my and my wife's retirement accounts in cash during 2008.

Anybody that says's TA doesn't work is a horse's ass.

Last thought; you're only as big as your biggest loss. Blowing up your account is a right of passage.

 

[saliva]

Quote from Thermactor:

Anyone who voted yes to the last option is lying

I know it's fashionable these days to diss anyone who remotely resembles a poster child for success, but to sweep everyone under the same category is a sign of self-immolation (read: mental disturbance) that seriously needs professional help.

On a serious note, shall we maintain a balanced approach?

 

[dirkd]

if you have never blown up your account you will never become a profitable trader. As in life, in trading first you get the test then you get the lessons. the questions should be how many people have blown up their accounts and then had the balls to try again? I may be down but i am not out and that is the attitude you need to have to become a successful trader. do i make mistakes? yes. do i learn from each mistake? yes. do i get emotional every now and then? yes. Do i ever give up? No.

 

[ammo]

used to b e the sayin on the fooor,u never lean til the 3rd blowout,so no shame ,just dues,there was no sim option then

 

[Thermactor]

Quote from saliva:

I know it's fashionable these days to diss anyone who remotely resembles a poster child for success, but to sweep everyone under the same category is a sign of self-immolation (read: mental disturbance) that seriously needs professional help.

On a serious note, shall we maintain a balanced approach?

you're taking it a bit personally aren't you? You must have voted yes on four

 

[Thermactor]

Quote from Spooz Top:

he`s a very interesting man to speak with as he is well educated & expresses himself intelligently on any & all topics......he`s actually a very fascinating & kind individual as i find myself seeking him out for an "education" on perhaps what not to do but can`t help but feel he intentionally holds back when our discussions reach a certain level or the common denominator.

however,i feel fortunate to know him & i have a tendency to get upset when a passerby scoffs at him or make snide comments & it is he that reminds me that "people" can`t resist human nature to judge him prematurely on appearance rather than substance.
he refuses when i offer him a hotel room for a few nights during that wicked cold snap here in the north east or for me to care for his dog & adopt him.

the one thing that always confuses the hell out of me is when we are parting company i feel he has a sense of pity for me rather than vise versa....as if the wise owl knows of something i do not or perhaps he knows of the pain involved in the craft....a pain that is to come for me.....i also can`t help but feel he got exactly what he wanted & is where he wants to be....as unusual as it sounds.

one thing i do know is that i am proud to have a friend ....& his name is Thomas.......judge not,least ye be judged.

Thanks for this post, its very good

 

[saliva]

Quote from Thermactor:

you're taking it a bit personally aren't you? You must have voted yes on four

Actually, I haven't cast my vote yet. But I will tell you this. I too once blew up my account at the beginning of my career, so you know which button I'll be pressing. Certainly not the last one.

No, I'm not taking anything personally. I just don't buy into the notion that 99.9% of the traders fail. Even if a large chunk of them blow up, I would like to think a lot of them will eventually claw themselves out of their grave. Since I belong to this particular group, I also share the same opinion as many of you that going belly up does more good than harm in the long run. It definitely gave me a new perspective not just on trading but on the meaning of life in general.