My story for the week

Thanks for the update and bump Kev, it is so easy, especially after a good run to forget that you really don't know jack about what the market is going to do and to start thinking that you can make a better fundamental assessment than the rest of the crowd. It analogous to when events happen in life that remind us not to take simple pleasure in life for granted, well in trading we need to be reminded for time to time that we need to stick with our game plan and not start to think we are so smart that we can all of a sudden start shooting from the hip. Happens to the best of us, even the LTCM guys. Best of luck and I second the recommendation to read Douglas's book (if you haven't in the intervening years)
 
Thanks for the bump, it was a good read. I assume those were post 9/11 buys thinking the market was going to jump but the market continued down?

The markets must have been crazy at that time and options very expensive.
 
Quote from Kevmeister:

Anybody have any daytrading stories for the week. Here's mine.

I have been successfully daytrading for several years. :) Occasionally, I do stupid things and blowout a significant amount of money (at least to me). I've done this twice in the last 2 years. The first time I made $50,000 on some options, only to lose $28,000 the next week. The second time I bet big on JDSU being added to the S & P. Lost $29,000 in 3 days.

You would think I've learned my lesson.

Now for this week's blowout. First, let me state that it has been a tough year to make money (for me). But I steadily made gains. I did no overnight trades (except in my 401k). I was up about $39,000 as of September 9, 2001.

I don't know what happened next but it was very painful. I formed an opinion that I would take some positions when the market reopened. I was not going to short but would buy some of my stocks that I trade and appeared to be undervalued. I always trade from the technical side but all of a sudden, I'm a fundamentalist.

And I'm thinking about holding overnight.

So here I go, buy some AMAT, pick up some QQQ, oh, EMC looks good, bought some, what a minute, don't have any GE, I mean, come on, GE the juggernaut of all time, a must-have for any fundamental portfolio, bought it and last but not least why not pick up some MSFT. So that's it.

Did I have a plan as to what my out was. NO
Did I have any type of plan, anything at all. NO
Did I do any risk/reward analysis to determine trade size. NO
Did I have any idea what the hell I was doing. NO

Did I form an opinion about exactly what the market was gonna do. YES
Did I break just about every rule in my trading book. YES
Am I trading emotionally. YES

Don't ask what the hell was I thinking. I don't know.

So, fast forward a week later. I'm still holding some positions but did liquidate some. Why am i still holding. HOPE. The trader's worst enemy. Down $31,000 for the week.

At least you can say I'm consistent. I now CLEARLY see why people can blow themselves out and lose in this game. But not clearly enough as I'm still holding some of this crap. Don't get me wrong, I'm far off from blowing out my account. But this hurts, sucks whatever.

I seriously am doubting my abilities right now. I mean, I decided to hold positions on the DOW's worst week since the depression. Thinking about giving up the game while I still have some money.

I know I won't give up. I've always come back.

Last year after the JDSU fiasco, came roaring back and made 3 times that loss by the end of the year.

But this loss is more painful than any other loss. I should have known better.

I wanted to share this story to let others know that if you let your guard down, just a little, it can (will) cost you bigtime. Keep those rules posted on your monitors, bathroom mirrors, refrigerators and read them everyday. EVERYDAY.

I really need to just dump my positions and sit on cash, like I always have, until I can clear my head. Because I am in a daze right now.

Thanks for listening, fellow traders. I feel a little better writing this out.

PS I'm still up this year. Until Monday.

Kevin
More...

you're a noob

Even halfwits that watch cramer don't lose that much
 
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