I am done with trading.

Been there done that. Back in the mid 2000's, I lost $26,500 in a few hours. At that time, that was half of my trading account. I quit for a couple years and then came back. However, when I came back, I had done tons of backtesting and had actually found a profitable methodology with a positive expectancy. I also made sure I had two people (including my wife) that were on top of what I was doing and if I found that my methodology didn't work (with real money), I would be forced to quit.

In other words, I had an accountability structure in place and a methodology that I actually believed in.......

Jason
 
Quote from HuggieBear:

Anyway, I think the key is not simply being willing to "cut losses", you must have a confidence in your trading method that there is a statistical edge. If you have complete confidence that you have an edge, then I believe it's easier to cut losses.
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This realization was the full circle closure of my journey as a beginning trader, and it was a game-changing moment. You have to find a statistical edge to succeed. Once you find that edge, losses mean nothing because they're small and the frequent winners erase them quickly. There is no better state of mind than taking a small loss and realizing it will be easy to erase, instead of feeling like you have a hole to dig out of.

Averaging down is only an edge in conjunction with a pre-planned acceptable stop loss.
 
My read:

BPTrader has many bipolar mood swings, not unlike the S&P movement on Friday (2/12/2010). Often times you will find him a cocky newcomer telling other newcomers what to do. But just as often you find him totally deflated like now.

His journal (which he abandoned because he didn't like the moderators):

http://www.elitetrader.com/vb/showthread.php?s=&threadid=177089

Often from his journal you will find these "huh, what's that?" stuff. Nothing concrete.

My guess is he will probably be back onc his mood swing is back to "upbeat, cheerful". Though where he will find trading capital is a different question. Unless, of course, this is all fake money.



BPtrader


Registered: Jan 2009
Posts: 509


09-30-09 01:44 PM

This thought has been on my mind for a long time: the reason for a trader's failure is the same reason for his success.

That is very very deep.


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BPtrader


Registered: Jan 2009
Posts: 509


10-01-09 02:33 PM

Fear and greed are perhaps the most talked about reasons for a trader's failure, yet they are perhaps the most misunderstood words in trading.

I went to a bookstore, walked over to the investment shelf, picked up a day trading book, opened the book, and this sentence jumped into my eyes: "Don't trade with fear."

Most readers will probably instantly agree.

Well, I don't, because there is no such a thing called fear. If there isn't fear, you need to find something/someone else to blame for your failure.



BPtrader


Registered: Jan 2009
Posts: 509


10-05-09 01:48 PM

Today I met an enemy at the front door, knocked him down, but the back door enemies were too strong for me, there were three of them, I was held back for some time, then fought my way through with a medium size wound.

I came back a few times, kicked down the front door enemy, but was always scared by the back door enemies. I did snatch some medicine to cover my wound, though.

At least I got to know my enemies better. I will find a better weapon tomorrow.


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BPtrader


Registered: Jan 2009
Posts: 509


10-07-09 03:34 PM

I just found out today that I only have one enemy.

I didn't know him very well, the image was vague in my mind, the image of a fleeting monster. I didn't want to see the monster, I was trying to avoid him subconsciously. I know this enemy has scared me for years, but I hated to confront him. I know he is very very scary.

I have delayed confronting this monster for too long. By accident I caught a glimpse of this enemy today. He is indeed scary, he was laughing at me while I was paralyzed out of fear. I couldn't move, I couldn't lift my hand, I couldn't lift my finger, then I saw this monster looking at me, laughing at me.

Finally, I saw the monster.

Strangely enough, I feel relief. But will I be able to fight the monster? I don't know. Maybe I know, but I don't want to claim victory before the battle begins.
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Quote from BPtrader:

I was supposed to be on holiday last Friday, but somehow I logged on the Internet and began to trade. Maybe my brain was not functioning well, I just went crazy after the first trade. Not only did I refuse to take the loss, but also I averaged in with a monstrous 10 lots. When it went against me, I totally lost it and averaged in another 7 lots (that was all my account balance allowed me to trade).

With averaging in, we know what will happen eventually. I guess my fate finally caught up with me. I could have taken a loss of $300 after the first trade, but the 10-lot average-in cost me $4000 within 20 minutes. After the second average-in, my unrealized p/l showed a loss of $9000. When it went over $10000, I couldn't take it anymore and threw in the towel. Total loss: $10,950.

I used to lose a couple of thousand when a disaster hit, but this time it was totally out of control. I didn't seem to be the same person that I was, I became a maniac, or compulsive gambler to be more exact. The kind of gambler that you find in a casino, the kind of gambler who bet everything on one color, the kind of gambler who went all in.

I have finally decided that I am not fit to trade. I shall end my misery once and for all. No more trading.

I finally accept the statistics that 99.9% will fail in trading. I guess those who discourage others from trading are right after all. I am at peace with myself: Trading is not for me and 99.9% of those who tried.
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wow that's a lot. but you know, sometimes people do make mistakes, you just have to accept it and move on. but it doesn't mean that you have to stop what you enjoy doing.

take a break probably, and come back.
 
something missing in this discussion..in all sincere sorryness for the op for his terrible loss...this missing part is...think about all the success stories...Thomas Edison failed 1,000 times before invented light bulb, Michael Jordan cut from high school basketball team etc etc...how many times do successful business people fail and fail before they succeed...like JCPenney...bottomline, "you got to get back up!!!!"...don't quit!
 
Words of wisdom here

Quote from increasenow:

something missing in this discussion..in all sincere sorryness for the op for his terrible loss...this missing part is...think about all the success stories...Thomas Edison failed 1,000 times before invented light bulb, Michael Jordan cut from high school basketball team etc etc...how many times do successful business people fail and fail before they succeed...like JCPenney...bottomline, "you got to get back up!!!!"...don't quit!
More...
 
well i think there are a lot of elements to enforce discipline. for one, you have too much in your account to lose. depending what you trade, if u don't NEED that much cash to trade u should keep your account size as small as possible so you would not go double down on your losses.
true, most traders fail. but look at how most successful traders and hedge funds have gone broke, washed dishes on minimum wage only to use the money to trade again.

quit or not its only a matter of passion. for many friends and i, its either make it or die trying. if you don't have that kinda resolve, i would say this is what shakes most "traders" out of the business.

i agree with ur post, cold it may be, but as u said its zero sum.
it is war. in war losses are part of the "process".

i never believe it should be losses that drive people to quit. i believe is the self realization that one is incapable of making it, self efficacy that SHOULD be the driving force for someone to throw the towel
 
Quote from Debaser82:

Just buy some gold each month and bury it in your yard.

This method has outperformed 90% of all investors for a decade now.
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That is ok if you only have a 10 year memory...now how about 30 years...how is your performance?

Cherry picking a specific , but convenient , period is completely useless:cool:


NiN
 
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