Huge Losses

[longtermpunt]

Yes. A winner into a loser.

I was going for the home run.

I was going for the kill. But instead I got killed. So whatever you do. Don't do what I did.

Also happens after a string of wins and I feel invinsible. Yeah right. Then whamo. Back to reality.

 

[ozzy]

Ripley, Ripley, Ripley.....

"Today was a great experience. Well worth the $1,000 I spend on it." (Ripley)

You just lost 50% of your portfolio and you think it was a worth while lesson. You can learn for free on a simulator.

Where do you live, I would like give you a visit and give you a bitch slap.

ozzy

Quote from Ripley:

Even if the situation was cleared, I was kind of thinking that it was still a scary situation. Thus, I just didn't see that it could turn around with such an abrupt turn of momentum. I know I wasn't quick enough to catch it. Today was a great experience. Well worth the $1,000 I spend on it.

And it couldn'tve been -10 pts, because it you go with a stop like that with that much turbulance, you're going to get stopped out every time.

 

[FuturesTrader71]

Quote from Ripley:

Even if the situation was cleared, I was kind of thinking that it was still a scary situation. Thus, I just didn't see that it could turn around with such an abrupt turn of momentum. I know I wasn't quick enough to catch it. Today was a great experience. Well worth the $1,000 I spend on it.

And it couldn'tve been -10 pts, because it you go with a stop like that with that much turbulance, you're going to get stopped out every time.

Easy.... you are not equipped for news nor do you understand the true nature of an auction market. Hence, the only solution for you is to stay out despite the appearance of opportunity. I scalp a good load of volume, so I trade through pretty much all market moods. I know from experience when I tell you that, in either case, you don't have the right mindset for futures trading. You should only be thinking of ways to stop people who have experience in the markets from plucking your money away from you. Always define and address risk first and foremost. You can give this its due respect here from my words or you can pay to learn that what I'm saying is an absolute fact. Either way, you decide your destiny and only you are responsible for what happens. You get yourself into the market and you have to click to get out. This is one way the market is different than gambling. The losses don't stop when the dice stop rolling under these conditions.

Bear in mind that the trader's greatest enemy while trading is longevity. This is what gets almost all traders, big or small. You have to make your errors very small and inexpensive so you can be around when it all clicks together. Losses like today on a small account will leave your confidence crushed and, therefore, your perception very skewed. This is not necessary.

Just remember: Know that you don't know and take care of risk first.

 

[Ripley]

Quote from FuturesTrader71:


Just remember: Know that you don't know and take care of risk first.

Finally an advice that is different from say out of the markets. And you know what guys, that alone right there is worth the $1,000.

I will not lose more than -$50 on one trade. And I am going to run this $900 dollar Cash Advance on my credit card into $100,000.

Thanks.

 

[Spydertrader]

Quote from Ripley:

What happened?

You lacked the discipline required to avoid trading on credit.

You lacked the discipline required to stick to your trading plan.

You lacked the discipline required to keep your losses small.

You lacked the discipline required to correctly analyze your behavior continuing to deny you have a discipline problem.

Where you see a "momentary lapse in discipline," I see a trend.

- Spydertrader

 

[NihabaAshi]

Quote from Ripley:

I am just curious. Do experienced and successful traders still have huge losses?

I am supposed to limit my losses to -10 pts, or -$50 on the YM trading just 1 contract. But I ended up taking a -$960 loss today with a 3 contract position.

Can somebody help me with how I could overcome this.
I took a -$660 loss on a two contract position last week also. Thus, usually my hard work for the whole week is wasted away in one or two trades. I usually make 30 RTs per day if that helps.

Ripley,

I think its very odd that you didn't respond to posts by Ozzy and Lamont_C message posts that ask you if your using stops.

I also find it odd that your wondering what experience/successful traders are doing concerning their losses.

First of all, the best way to force yourself to use hard stops is to use a trading execution platform that allows you to auto in a stop as soon as you click the Long or Short button (1 click process).

In comparison...you obviously don't have the discipline to mental stops nor to manually put in a hard stop (2 click process).

There's also a huge contradiction in what you view as being discipline.

Quote from Ripley:

I just want to say that I don't have a lack of discipline or anything like that. I am also not afraid to take a -$50 loss. I do have a good trading plan, although it is quite hard to stick to it at all times...

* Traders with a good trading plan don't get cash advances on their credit card to finance their trading.

* Discipline traders don't let a loss be 19.6x greater than a specific threshold.

Simply, you are not a discipline trader nor do you have a good trading plan.

Undiscipline traders should take the day off from trading (don't even go near your computer) on FOMC announcement days, EIA Petroleum Report days, Treasury Budget days or any other key trading day that's a regular schedule market event...

These are the days that most undiscipline traders get their teeth kicked in.

As for critique your trade (it shows you have NO trading plan)...

Re-read your comments.

There's not one single comment on that chart that shows nor hint that you have a trading plan.

Thus, if you truly want help and truly believe you have a good trading plan...

Re-post your chart and provide technical or fundamental reasons about what you did and get rid of the emotional commentary...

Emotional trading like...I wish, I hope, I feel, I think et cetera.

Like the consensus of this thread...stop trading.

Work overtime at a job or get a second job and save up your money so that you can trade at least 1 contract while not being undercapitalized while doing it.

Quote from Ripley:

Guys, the question is where would you've gotten out of that trade...

Answer: When your hard stop gets hit or when your broker forces you out via a margin call.

You do not have deep enough pockets to let a trade go that far against you.

You are not a discipline trader.

You do not have a good trading plan.

As for what you call a special situation...

That type of stuff happens often.

For example...maybe next FOMC announcement the FED will forget to add in a sentence or two then later on in the trading day...they add it in...

Special situation.

Maybe the EIA petroleum report will be leaked and the market spikes early around 1010am est.

Maybe Zarquawi capture is only a rumor.

Maybe there's a data problem in ES and it stops trading for several hours.

Ripley...there will often be a special situation.

With all that's said above...your very lucky.

It's easy to bounce back if you blow out your initial $1,150 dollar trading account.

Once again...until you learn how to be discipline and until you get a good trading plan...

You should be using a trading execution platform that automatically puts in a hard stop (your risk limit) instantaneously after you get a fill on a Long or Short position.

Then...if you remove that stop again...reality will hit you that your not discipline.

Last of all...stops have a purpose and to rationalize via the following while you are undercapitalized and trying to trade like someone that's well capitalized/experience/successful...

Quote from Ripley:

...And it couldn'tve been -10 pts, because it you go with a stop like that with that much turbulance, you're going to get stopped out every time.

You need some serious intervention.

NihabaAshi

 

[ozzy]

Wow. Lots of free advice.

I say we start a new thread "How many days it will take for Ripley to lose his underwear"

<=========== I say 2 weeks. =================>

Time to read. I think I broke a record for most posts in one hour.

Good night all

 

[nzbryant]

Ripley

Futurestrader71 and Nihabashi are two of the smartest traders on this forum. Heed their advice.

Your worst comment was saying you have discipline. You have dog shit. Borrowing money on a credit card, hoping a loss will turn around, being WAY overleveraged for your account etc are piss-poor behaviors if you want to get rich.

You do NOT know how to trade. You may learn, but not if you LIE to yourself and say you are disciplined. Take a good look in the mirror and start to be humble AND LEARN (I would write learn in larger letters if I could).

 

[Lamont_C]

Quote from Ripley:



I will not lose more than -$50 on one trade.

That's what you said yesterday.

I'm reminded of all those wannabees who go to LA to make it big. Or NY. No interest in learning their craft. They just want to make it big. And how many do?

There's really no point in replying to posts like this. Mine is more of a shrug cast heavenward, with maybe an "enh" thrown in for good measure.

 

[Ripley]

Quote from Lamont_C:

That's what you said yesterday.

I'm reminded of all those wannabees who go to LA to make it big. Or NY. No interest in learning their craft. They just want to make it big. And how many do?

There's really no point in replying to posts like this. Mine is more of a shrug cast heavenward, with maybe an "enh" thrown in for good measure.

I probably should be trading on the simulator. But, I really have an edge, and I really want to see what happens to my $358 before I have $930 left. Thank you all for some great lessons.