How do you stomach huge loss day

ammo
is very funny .. just a night before Thursday session I stumbled across this thread -
http://www.elitetrader.com/vb/showt...&highlight=puts boatload oex&pagenumber=12654

"had 1 of those days in '89,short a boatload of oex puts,dow dipped 50 points, clearing firm made me cover, down 190 k in one day, 2 weeks later all those puts went out worthless,lessen learned , dont oversize your position and constantly adjust,i constantly reduce and adjust my avg price, and have a max $ position loss limit"

..and something similar happened to me next day..well.. slightly similar

Not sure if your wrote it ..or text was part of flipfopper's quote ?

Quote from ammo:

http://www.elitetrader.com/vb/showt...64965&perpage=6&highlight=sh&pagenumber=11996 lost 30 points on a 30 lot es,max pain on position build is about 40k,it only hits once a year ,if that,don't expect it to happen but it does ,rarely, anyway ..., if you except a max loss, when it gets there , take it, ...u can always get back in ,more often than not, at a better price..... About half of trading is losing, you never get short at the exact top or long ,exact bottom, ...so almost every trade you put on , ... starts as a loser ,...so even if you dont close it out right there,,...you took a loss,... as the market moved ,you may have gotten it back with profit.... I don't think of losses as losses...,the year is just one big collage of trades.... and the end result is a net profit. ...If the you lost that at the track, ..you will never see it again. ...I f you lose it here,you can always get it back,...that can only happen if you respect a predetermined loss first,... and that predetermined loss is exceptable in relationship to your acct ...before you enter the trade.
More...
 
Quote from ksonsinc:

Shiko
I have started trading prop and i was up like
1 day $142
2 day $122
3 day $ 47
4 day $-110
5 day $-60
Even 100 lot shares can increase your losses
I was trading 100 lot and the past 2 days the market has been weird and we have ended losing on all are shorts.
So let see how next week goes
Good luck
More...


ksonsinc:, you mean you was making this numbers with 100 shares?
When I am trading I am not counting $ dollars but net ticks made.
out of last 7 days 6 days I managed to average 5 net ticks daily but lost 15 ticks yesterday. this si what upset me since I probably would be able to move to 300 shares had not I lost this much on Thursday.
We generally scalp since our stops are so small.
I started trading on January 18. so, 4 weeks already.
Because I trade also Forex and previously and had minor exposure to stocks price action, it looks fine to me. at least I know where is my stop is to the tick.
 
Quote from nitro:

FWIW, we were up about $29,000 in the overnight session which we could have hedged and locked in 95% of it (it is more complicated than this but it is essentially correct). We went for the fences instead. By EOD, we were down $17,000, a $41,000 swing.

What do we do? Shake it off, stay centered, and decrease shares.
More...

You just can't get off the habit of being short. One day you may be hugely right, but you may go broke trying to pick the top. Never got that PM I suggested..... Re-suggesting....
 
I think the idea of the post was lost on you

Quote from unretired:

Sorry ... but that is a recipe for disaster and is a Gambler Mindset.
Not for experienced traders.

Creating a negative debt reference gets you more of the same.
More...
 
You must log in or register to reply here.
Back
Top