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I went totally broke because...
- Thread starter Sanaz3
- Start date
I just had to read the first 4 words:Quote from Sanaz3:
Hello,
I started day-trading stocks 8 months ago with $7,000 and absolutely zero experience. I made some money by chance I call it and lost them a few days later..made, lost, made, lost...you know the end. I went down to $500 recently and eventually declared myself totally "bankrupt", suspended my trading platform, and I am currently taking some time off. Meanwhile, I have no other source of income and was forced to ask my father to bail me out.
Long story short, I learned alot from my mistakes and the most valuable lesson I learned the hard way of course was: Get out of a losing trade before it's too late.
I have come up with a set of trading rules for myself, which I didn't have before and am trying to apply them when I get back to trading again in the near future. Here are my "5 simple rules":
1- Do NOT rush, wait for a 100% certain opportunity to get in!
2- Do get out of a losing trade before itâs too late (max 2% loss)!
3- Do not switch between going short ↓↑ long frequently and confusedly!
4- Do not hold positions overnight in the hope of tomorrow!
5- Do not trade during pre-market & after hours!
From your personal experience, tell me please what you think of these and what I am missing or need to add as far as the rules are concerned. Thanks.
I WAS DAYTRADING STOCKS.
This clearly explaing why you are broke.
Not only you blewup your account, you missed opportunities by being glued to a computer.
Quote from chrisjs87:
What stocks? Some examples? Were you using Stops?
AIB, KRG, SNV, AHD,HLCS, SNSS, HITK, FOE +1000 more as I watched over 1200 stock at any time. I didn't use stops because I was in front of my laptop all the time. But my big losing trades were those that I shorted, held them overnight, and the next morning they started to skyrocket...NLST as an example. Shorted $5.75 covered at $7.50.
One example: last July I bought 2000 shares of FOE for $2.00 and sold it for $1.98 2 hours later..Had I held on to them, I would have had over $16000 today...but I wasn't thinking investing.