I Got this one wrong guys.....

I want to show people the anatomy of a trade gone wrong so hopefully no one ever does this..... I had it short at what i thought was the dead top.... then i piled into it.... then the market gapped through me and i still didn't accept it.... its just an asinine trade.... no other way to look at it. I added more instead of realising how wrong i was.......

Im very thankful for all the kind comments.... I wanted to show you guys how it happens....

250k swing.png
 
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On a mean reverting instrument it is almost very high risk to fade the move before a 50% retrace which is ~2793 SPX

If you want to survive long term in the market you must sell greed and buy fear


This is why 95% fail BC they are not wired to do this and do this even when others are doing the opposite.
 
Max E. said:
I want to show people the anatomy of a trade gone wrong so hopefully no one ever does this..... I had it short at what i thought was the dead top.... then i piled into it.... then the market gapped through me and i still didn't accept it.... its just an asinine trade.... no other way to look at it. I added more instead of realising how wrong i was.......

Im very thankful for all the kind comments.... I wanted to show you guys how it happens....

View attachment 224601
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You removed the axis info...not sure why.

What's the name of the trading instrument that involved your trade and the timeframe at the bottom axis ? (must be SPX - daily...a little different on my charts...just wanted to make sure).

Thus, because you're showing a daily chart, does that imply you enter your trades via daily chart analysis and not via any intraday chart analysis or you didn't use any charts but just showing a chart now as a reference for us to visualize what you did ?

Its not uncommon to see someone show a chart of SPX when the trade was actually in options, SPY or Emini futures.

You piled in with all the info about the 2 trillion dollar stimulus package and negotiations about the Oil crisis. Hopefully, that piling in didn't imply every available funds you had and did not involve a margin call at the end ?
  • Thus, trade entry date, add dates and exit date ?
  • What was your profit level you were at in the trade (dollar amount) when you decided to pile in on the low as you highlighted on the chart ?
Understandable if you don't want to go into the specific details of the big trade loss.

Now I'm curious why you refused to accept the breakout. As in, was there something going on outside of your trade that had influence on your trading for you to continue to believe you were right (market was wrong).

Thanks for sharing what you have about the big trade loss.

wrbtrader
 
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Max E. said:
I want to show people the anatomy of a trade gone wrong so hopefully no one ever does this..... I had it short at what i thought was the dead top.... then i piled into it.... then the market gapped through me and i still didn't accept it.... its just an asinine trade.... no other way to look at it. I added more instead of realising how wrong i was.......

Im very thankful for all the kind comments.... I wanted to show you guys how it happens....

View attachment 224601
More...
Hello Max E.,

You are the first stage to getting better and that is accepting Responsbility and displaying what went wrong.

Regardless of how you traded and your planning, next time make sure you don't risk more on one trade that can cause emotionally stress and fustration and account ruin. We HAVE to be able to survive to reap the rewards of yearly profits once all the tuff learning is done.

Well done. And next time always use a stop loss.

https://www.stocktickr.com/positionsize/ I use this when I want to swing trade SPX or UCO.
 
From one not very well known actor to another, if you have 250k to lose, hire staff, with good minds, and useful skills.

I would have screwed up several times but I have a little team of three including myself.
 
Bugenhagen said:
From one not very well known actor to another, if you have 250k to lose, hire staff, with good minds, and useful skills.

I would have screwed up several times but I have a little team of three including myself.
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If you built a fortune on your own...most likely if you hire help...it will be like a secretary, accounting / book keeping and possibly a personal assistant.

Yet, all the trade decisions will continue to be yours considering its what got you there in the first place.

Regardless, I've never met anyone with staff if they had 250k to lose. In contrast, I have met a few with staff that were trading with > 5mil or had consistent income > 1mil every year...the latter weren't traders. One is owner of an architecture firm and the other a hockey player.

wrbtrader
 
wrbtrader said:
If you built a fortune on your own...most likely if you hire help...it will be like a secretary, accounting / book keeping and possibly a personal assistant.

Yet, all the trade decisions will continue to be yours considering its what got you there in the first place.

Regardless, I've never met anyone with staff if they had 250k to lose. In contrast, I have met a few with staff that were trading with > 5mil or had consistent income > 1mil every year...the latter weren't traders. One is owner of an architecture firm and the other a hockey player.

wrbtrader
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Somewhat yes, I have a PhD level person who has 25 years doing very practical statistics and a medical device level (there is not a real grade but he used to do this) developer.

I can do some code, I can do some stats.

But more they both can manage a trade so I can walk away. But excluding the bots, I press the button virtually always even if their solo or a team design.

Now we are all very rich (me most) and it just took six years. People are a real skill, just like trading.
 
Max E. said:
Thanks "smallfill"....... at some point I have to



Thats the thing.....I learned nothing.... if anything I want to short the market even harder.... Im So angry at what I did..... but I see an opportunity I wont see for a long long time....
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Hey Max, I am so sorry to hear about your loss. I get how frustrating it is. We’ve all done some form of it. That’s why I keep talking about how important psychology is. It’s all emotion that takes over and has us do this stuff. Personally I did a lot of work on myself before I could trust myself to be in the market and to stop when I said I was going to stop. I know that doesn’t help you now but if a huge loss can help you or help anyone realize that this is a psychological game and that it needs to be dealt with at that level then it can start to turn your trading around.
 
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