Negative Trading Experience

cornix

cornix

Due to my recent research and online project I collect personal stories about FAILURES in trading/investing field. Doesn't matter if from the past or you are still a struggling trader, anything that you have done, but would rather NOT do again.

Anyone interested in sharing such stories, please contact me via PM or other method.
 
I develop a technique which more effectively combines "away from" and "towards" drivers of motivation to help traders perform better.

While online resources are full of positive experience being shared (fake or real it doesn't matter in this sense), people are very reluctant to share negative side of their trading.
 
This is a really good idea, Cornix. But expect hostility from the delusional obsessed and ne'er do wells as well as the ghosts and hoodoos of the ones who tasted success but gave it all back.

Very few will tell the truth-- look at the surf report--- vilefied when successful and attacked when losing. No one wants the truth. There's too much money riding on the business of hope for your project to make it out of the shadows.
 
cornix said:
Due to my recent research and online project I collect personal stories about FAILURES in trading/investing field. Doesn't matter if from the past or you are still a struggling trader, anything that you have done, but would rather NOT do again.

Anyone interested in sharing such stories, please contact me via PM or other method.
More...

I'll share the one thing I wish I'd learned from the first time and never repeated, because it was so costly. My largest losses came from having a strong opinion about fair value versus where price was currently trading and believing that price would have to move into profitability from my entry even if it went against me because it could never go that far against me. It not only could, it more often than not would, and that "never" price level (the disaster stop) was usually not all that far from a strong turning point. That's why if you're in a position against the prevailing price action and you have a far off price at which you've placed a disaster stop, your best trade is to immediately stop and reverse and then place an order to take profit and initiate an opposing position at the price where your disaster stop is.

:cool:
 
marketsurfer said:
This is a really good idea, Cornix. But expect hostility from the delusional obsessed and ne'er do wells as well as the ghosts and hoodoos of the ones who tasted success but gave it all back.

Very few will tell the truth-- look at the surf report--- vilefied when successful and attacked when losing. No one wants the truth. There's too much money riding on the business of hope for your project to make it out of the shadows.
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That's exactly why I started this sort of discussion: because there's an obvious lack of truth online about the business. Time to change things. :)
 
NoDoji said:
I'll share the one thing I wish I'd learned from the first time and never repeated, because it was so costly. My largest losses came from having a strong opinion about fair value versus where price was currently trading and believing that price would have to move into profitability from my entry even if it went against me because it could never go that far against me. It not only could, it more often than not would, and that "never" price level (the disaster stop) was usually not all that far from a strong turning point. That's why if you're in a position against the prevailing price action and you have a far off price at which you've placed a disaster stop, your best trade is to immediately stop and reverse and then place an order to take profit and initiate an opposing position at the price where your disaster stop is.

:cool:
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Thanks, NoD.

Yeah, I remember those times you faded stocks heavily. ;)
 
marketsurfer said:
What was the factor that made you reach this conclusion?
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Many people I meet who trade are not profitable and tell about the problems they face. Very often the case is they actually lack knowledge on what it's all about. Content of online resources is heavily shifted towards vendors who make things look as easy as buy their stuff (or follow their stuff for free if those quasi-vendors do it for their ego and not money).

All that made me think that knowing what NOT to do is as important for people as knowing what to do. It's part of my occupation as psychologist to help others solve the puzzle life presents them.

In case of trading it may even be helping people to STOP trading in some cases (because far not everyone has necessary traits). Which is very hard to do for cultural reasons.

So trying to collect valuable information and simultaneously break the ice of hesitation of speaking about our mistakes and defeats. :)
 
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