Lost 80% of my risk contribution...
- Thread starter VXX
- Start date
What gave you that idea, newb?
Just from most of your negative posts that I've run across.
In two month, is that possible to make them back...? I feel like losing hope day by day..and since no much left, I cannot trade larger shares..it makes harder.
Don't worry about making back the 80%...it's gone. The most important thing you can do is make sure you don't completely blow out and run out of bullets. I have been there before after blowing an account out and not having enough margin to trade, it's not fun. You need to learn how to have risk control, you need rules. You should never have a trading plan that allows for an 80% drawdown. You have the opportunity for a huge lesson that could be pivotal for your trading life. Don't try to make it back in a few short days or weeks. Learn how to trade, go as small of size as possible and just focus on risk management. Starting with the capital you have left you need to have a plan that calls for when to stop yourself out on any single trading idea and also when to stop trading for the day/week and even when to go back to sim to refine. I spent the first 2 years of my trading career following no such rules and I had similar results as you. I'm not perfect but I'm doing better now.
Most of the best in the business have done exactly what you have done OP.
Learning the hard way is the most effective way.
When you touch a hot stove as a child and get burned, it teaches you to never do it again.
You just had your lesson. Now learn from it and move forward.
Your bet size on any one trade should be 1% or less of your account if you want to really reduce the risk of ruin. Don't bet more than 2% in any one idea or correlated trade.
just my 2 ticks
Learning the hard way is the most effective way.
When you touch a hot stove as a child and get burned, it teaches you to never do it again.
You just had your lesson. Now learn from it and move forward.
Your bet size on any one trade should be 1% or less of your account if you want to really reduce the risk of ruin. Don't bet more than 2% in any one idea or correlated trade.
just my 2 ticks
I lost 75% of my account last year. What did I conclude? My overnight system sucked in risk management. I went back to the drawing board and further developed my day trading algo. Results? I came out of drawdown in April. Lesson - don't stay committed to anything that doesn't meet your needs.
%%In two month, is that possible to make them back...? I feel like losing hope day by day..and since no much left, I cannot trade larger shares..it makes harder.
Welcome to the forum;
sure 180%% gain is possible again, probably not in 2 months
Good news + bad news. The smarter you are the longer it takes, thats the good news. The bad news is an elite trader warned dont'' trade so big, that is why the market reverses on you!!!!!'' + the younger you are,, the more time you may have??.
Not a prediction; wisdom is profitable to direct+ correct.
PS I knew quick-early ,,the markets are NOT random,, because i lost so much more than average[%%], myself.
Thank you so much guys, i was thinking about making them back in two months, lol. I now know that it might be possible, but it should not be my goal, the thing I need to do now is to improve my ablity, learn from others, read more books and study on my own trades.
Thanks agian for so much valuable tips!
Thanks agian for so much valuable tips!
%%%%%%%%%%%%
Mr V;
Sounds like, to me,
you are on the right road.I re-read Jack Schwager-M Marcus,Rich ''turtle'' Dennis,M Masters, it's still real helpful.
Rich Dennis made money on his Chicago market making trading[on old floor]. I type/trade too slow for market making style trading,LOL. But as [Rich remarked ]i found [proved] there is an insurance premium, on overnight holds. Sure there is flood, + storm risk;
State Farm stopped doing some types of FLA insurance.....................................................; too risky.
Keep good records, that how M Marcus proved he made money in some things;
but lost money in CA real estate, 10 times in a row.
Wisdom is profitable to direct. Frankly CA realty is too regulated, + roller coaster for me. .....you would never carry yourself to such extremes if you used proper money management. In trading it is even has more importance than trading itself. Because you should stop and pull out when you see that it is enough and never rely on contingency, luck or magic. Seems you are completely wrong with the trading strategy. Choose something brand-new and give it a new start..