I Got this one wrong guys.....

[systematictrader]

When we bet big it is normally down to greed and impatience.

We want to make a big killing fast. Double that account quickly.

The last time i traded like that was in 2013.

But it can happen to any trader at any time.

Try and stick to 2% of the account per trade.

5% if you get greedy.

I went to 10% and took 2 two of those in a row, lost about 120K USD in two days. 20% of my account back then.

Agreed, a fixed percentage of account equity protects a complete blow up from ever happening,, not sure how the one person above says one bad trade and your ruined, i disagree

Max, it happens buddy. Happened to me over 10 years ago and thats why i no longer trade for a living. One bad trade and you can be ruined.
I would invest for long term on weakness and not trade.

 

[systematictrader]

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

You need to add MACD on your daily chart can save u from a lot of trouble
Specially with breakouts and flags/pennants which are too common these days with no clear indication on continuation

 

[wrbtrader]

You need to add MACD on your daily chart can save u from a lot of trouble
Specially with breakouts and flags/pennants which are too common these days with no clear indication on continuation

Well...since you're recommending the MACD to him while he uses price moving average crossovers such as dead top (death cross) signals...

• Can you post a chart of his SPX that show the MACD along with the same price moving average crossover that Max had used ???

• Also, do you have any statistical data about the MACD on the SPX in comparison to the Price Moving Average to show that it would have saved him a lot of trouble ???

Thanks.

wrbtrader

 

[Hotcakes]

I'd be thankful for 250k to blow off like smoke. Take the lesson and dont fck up again.

 

[ironchef]

I don't require proof, but the level of sympathy for this loss is OTT imo.
Max E. had a thread going where he was calling short as the price began to run, the thread is in Politics section, is two pages long and has 6 other regular ET posters chiming in.
No big deal, Max E. got the call wrong, happens to everyone hundreds of times, my batting average is not that flash either.

But my beef is, why start a new thread in Trading section, shout from the roof tops a loss and spell out the amount of loss.
To me this is reverse narcissism, "Look at me, I'm a loser, can you give me some attention here".

[Edited by Magna:] It wasn't started in the main Trading forum, but instead in a non-trading location where he wasn't shouting from the "roof tops". I moved it here as this is useful for traders to see, and this is where it belongs.

We are sympathetic because we are in the same boat.

I took on big losses doing the opposite, adding on more long at around the ATH. It got to show there are more than one way to lose money in trading.

 

[Hotcakes]

Fear and Greed eh.

Have to master fear first. Then with wins, have to master greeeeeeeeeeeeddddddddddddd..................

 

[systematictrader]

Well...since you're recommending the MACD to him while he uses price moving average crossovers such as dead top (death cross) signals...

• Can you post a chart of his SPX that show the MACD along with the same price moving average crossover that Max had used ???

• Also, do you have any statistical data about the MACD on the SPX in comparison to the Price Moving Average to show that it would have saved him a lot of trouble ???

Thanks.

wrbtrader

Macd is derived from moving averages hence its name Moving Average Cross ........ assuming same lengths are used,, main difference is macd tends to be ahead and more active but that same advantage can be a disadvantage when the market is trending heavily such as upwards gave bunch of signals that were failed signals,, but macd being a momentum/trend following indictor is one of the few that wont keep you wrong for too long,,, its useless if max or whoever uses it doesn't use it systematically in the sense of either in all the time long/short or not in at all or at least uses one sides of its signal and never overrides it,, for your second point yes thats available but once again if the person didnt use it from before those statistics are useless, in matter fact you can get those results mostly visually,, the thing gives no more than 20 signz in the whole year so visually u get a clear idea of its performance,,, daily chart S&P 500

 

[Handle123]

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....

Well, went down this road long ago, massive losses down to the bone, changed how I traded to hedging, and now hedging comes first before anything else, if can't be hedged correctly, trade not taken. The violent ups and downs went away as I am early too often, automation has help much, feel more distant now. Still have huge movements in open trades, but not in beginnings of trades and often hedge open profits expecting retracements that turn into ….collapse. Am willing to give up a little to eventually be rewarded...

Before you know it, you will recover, but in the months perhaps thinking of risk more and insurance?

 

[systematictrader]

Well, went down this road long ago, massive losses down to the bone, changed how I traded to hedging, and now hedging comes first before anything else, if can't be hedged correctly, trade not taken. The violent ups and downs went away as I am early too often, automation has help much, feel more distant now. Still have huge movements in open trades, but not in beginnings of trades and often hedge open profits expecting retracements that turn into ….collapse. Am willing to give up a little to eventually be rewarded...

Before you know it, you will recover, but in the months perhaps thinking of risk more and insurance?

Automation and systemization is the key to percent human impulses,, you said something very golden,, u feel distant,, thats how a trader should always feel distant and bored,, those reinforce no emotional attachment

 

[zghorner]

man this thread is like bear poison.