Is my career over?

Quote from Willleung:

I was hoping to learn something from TS mistake.

I read every post till page 26, then skipped every 8 or 9 pages; it's just too painful.

TS, are you size are you on now?
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I hope you do learn from my posts. I'm trading between 3 and 6 lots. If I do well with 3 lots for a week then I go up to six lots. If i make good money on 6 lots ($700 plus) then the next day I immediately limit my loss to $400 and If I do lose on that next day I go back to 3-lots. Whenever I lose on 6-lots, I go back down to 3. If I make money on 6-lots then I stay with it until I lose $400. Then I go back down to 3. Sometimes, when I make good money with 6-lots, I go back down to 3-lots to try to hold on to that money that I made for longer.

So far this has been working.

I hope you do well. Be prepared for losses while you trade because you will have major ones at some point. When it happens, don't go crazy and try to make it all back in one day, week, or month. That's the advice I'd give you. Thanks
 
Quote from TruthSeeker247:

I hope you do well. Be prepared for losses while you trade because you will have major ones at some point. When it happens, don't go crazy and try to make it all back in one day, week, or month. That's the advice I'd give you. Thanks [/B]
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I had mine.

Recovered 70% of the last major loss, with the same stock.

What's your target risk/reward ratio nowadays, TS?
 
Wow - it seems you have been through a rough patch. I'm an aspiring trader (this is actually my first post to ET) and reading this thread was really helpful. It certainly made me think twice about a few things.

I have a basic understanding of risk and money management but after hearing your story, I have decided that I need to learn much more about these things before I open my first account. I know that your experience is far from unique, but hearing it from the "horse's mouth" leaves a much greater impression.

Thanks for sharing your experience here. I know you probably started this thread to get help rather than give it but you certainly helped me.

Good luck!
 
Quote from TruthSeeker247:

started with $30,000 account. I made $3000 in my first month. I made another $2000 up until the last day of my second month. So I was up $5000 after two months. On the last day of my second month I lost $13,000. That same week I lost $3000, $3000, $2000, and $4000. Account was then at like $10,000. I took it easy for another month and broought the $10,000 up to $14,000. Then I lost the entire $14,000 over the next two weeks. I refunded my account with $10,000 and right now my balance is at $7000. It's been some ride and I only have about $10,000 more to fund my account with before I'll have to call it quits.

I've been trading the 30-year US Treasury Bond this entire time. I see that what has led to my downfall is trading too big size. I was trading 40 lots.

Given my experience, is it true that no prop futures firm would ever want to hire someone like me?

Let me know what you think. Thanks
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Learn how to manage risk, otherwise you´ll just keep pissing your money off...
 
Quote from Willleung:

I had mine.

Recovered 70% of the last major loss, with the same stock.

What's your target risk/reward ratio nowadays, TS?
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I look to make at least 5 ticks per trade and lose no more than 2. Each tick is worth $31.25 in the 30 year bonds. Sometimes I trade the 5-year note and it moves in half ticks so minimum price fluctuation is $15.625.

so the MINIMUM risk/reward ratio is 5/2 or 5/3 (if I'm being stubborn). I say minimum because I usually make more than 5 ticks per trade.

I don't trade multiple securities. The only instruments I'm trading now are the 5-year note and the 30 year bond. 10-yr is too volatile for me. I'd rather become good with the debt markets than to jump around all over the place. Thanks
 
Quote from Tremaine:

Wow - it seems you have been through a rough patch. I'm an aspiring trader (this is actually my first post to ET) and reading this thread was really helpful. It certainly made me think twice about a few things.

I have a basic understanding of risk and money management but after hearing your story, I have decided that I need to learn much more about these things before I open my first account. I know that your experience is far from unique, but hearing it from the "horse's mouth" leaves a much greater impression.

Thanks for sharing your experience here. I know you probably started this thread to get help rather than give it but you certainly helped me.

Good luck!
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I'm happy to have helped you in some way. risk management principles seem to go out the window when you are experiencing a string of major losses. Emotion likes to take over. Don't allow yourself to become emotional when you lose over a period of weeks. Don't increase your size to try to make it all back quickly. Thanks
 
now up to $14,500. Psychologically, I'm preparing for a big loss. I don't want to self-fulfill my own prophecy so I have to be careful. This time, I think i'm ready for any losses that may come my way. I will immediately decrease my position size and stay there until I make money.
 
Quote from TruthSeeker247:

now up to $14,500. Psychologically, I'm preparing for a big loss. I don't want to self-fulfill my own prophecy so I have to be careful. This time, I think i'm ready for any losses that may come my way. I will immediately decrease my position size and stay there until I make money.
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First of all congrats on starting to build your equity back up. It's good to see you're making changes, it was the only way you would have survived this game. You should always be prepared for any sort of big loss from a unknown event ie. 9/11 however, your risk management should take care of any normal equity drawdowns. You shouldn't be worried you'll be wiped out or even close to a drawdown you had before.

Go into excel and play around with different numbers risking 0.5% of equity per trade, then 1%. Stick to your pre determined risk, it was made when the markets were closed with logical thought, no need to let greed and fear get you or you will be just like the other 90% out there. Discipline, discipline, discipline. I personally don't think you should risk anymore than 2.5% per trade. How is your trading plan coming along?

Nothing like real trading experience to teach yourself about the markets but I suggest you pick up Trading In The Zone by Mark Douglas for psychological crap, The Market Wizard books and Reminiscences to learn from the pro's mistakes on risk management. Lot's of good material there, anyway just my opinion. Good luck!
 
Quote from jho:

First of all congrats on starting to build your equity back up. It's good to see you're making changes, it was the only way you would have survived this game. You should always be prepared for any sort of big loss from a unknown event ie. 9/11 however, your risk management should take care of any normal equity drawdowns. You shouldn't be worried you'll be wiped out or even close to a drawdown you had before.

Go into excel and play around with different numbers risking 0.5% of equity per trade, then 1%. Stick to your pre determined risk, it was made when the markets were closed with logical thought, no need to let greed and fear get you or you will be just like the other 90% out there. Discipline, discipline, discipline. I personally don't think you should risk anymore than 2.5% per trade. How is your trading plan coming along?

Nothing like real trading experience to teach yourself about the markets but I suggest you pick up Trading In The Zone by Mark Douglas for psychological crap, The Market Wizard books and Reminiscences to learn from the pro's mistakes on risk management. Lot's of good material there, anyway just my opinion. Good luck!
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I've checked out that book by Mark Douglas. I never read the whole thing though..... I didn't even trade today at all. Just watching the market all day. It feels good to be back up near $15,000. Now i'm kinda scared shitless to trade. Maybe I'll start trading again next monday so i have some time to cool down.

Anyways, thanks a lot for your encouragement. I can't let this market catch me sleeping again. I have to be prepared for the worst and hope for the best.

Thanks
 
Scared shitless is not necessarily a bad frame of mind to have -- at least for a little while. Being in that state will force you to seek out only the highest percentage plays you can find, use tight stops, keep winners from turning into losers, etc.

Your goal should be something along the lines of waiting for exactly your pitch, trying to hit only singles and making sure you don't strike out. A lot of small winning trades bunched together will be an excellent confidence builder...but you should never forget the place you are in now, even when it is well behind you.

In trading, a little humility is a good thing.
 
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