Prop Blowups, how common are they?

Have you ever seen someone blowup?

  • I've seen someone blowup $5k-$100K

    Votes: 75 28.7%

  • I've seen someone blowup $100K-$300K

    Votes: 52 19.9%

  • I've seen someone blowup $300K-1 Million

    Votes: 72 27.6%

  • I've never seen someone blowup

    Votes: 62 23.8%
  • Total voters
    261
the day of the rate hike in Jan '01 a guy in our office was short three stocks, one of which was AOL - don't remember the other two... he went to the head for a dump, came back and his whole account was blown out. never saw him again.

moral of the story... ALWAYS put in stops if u leave your screen for any reason! u never know what can happen.
 
Quote from keafan:

the day of the rate hike in Jan '01 a guy in our office was short three stocks, one of which was AOL - don't remember the other two... he went to the head for a dump, came back and his whole account was blown out. never saw him again.

moral of the story... ALWAYS put in stops if u leave your screen for any reason! u never know what can happen.
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Stops would of been worthless that day, eberything just gapped up
 
yes, everything gapped up. but they also gapped up and KEPT GOING STRAIGHT UP. with stops he would not have blown out his account. he would have had a big loss, yes, but not blown out.
 
Quote from keafan:

yes, everything gapped up. but they also gapped up and KEPT GOING STRAIGHT UP. with stops he would not have blown out his account. he would have had a big loss, yes, but not blown out.
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Not so sure about that, all my positions just gapped and at the end of the day the market was a little lower than where those positions were at the time of the announcement. I remember that day well, was my worst day. I though that was it
 
yes, everything gapped up. but they also gapped up and KEPT GOING STRAIGHT UP. with stops he would not have blown out his account. he would have had a big loss, yes, but not blown out.
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EXACTLY...however, with even some good trading platforms like Lightspeed, there is no built-in STOP LOSS order capability for Naz stock trading. Reason: ETrade does not want the LIABILITY from failed stop orders due to execution or technical problems.
Many other order entry platforms DO park stop-loss orders for Naz stocks locally....so what the heck ?
 
WOW..the guy losses 1600 in a day...Problem with you swift pikers is that you think 1600 is BIG...thats why you guys take home 3-5 k a month if your good...real traders COULD loose 1600 in a tick but make what you make in a month in one hour..GROW up or start another thread
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What's the difference ? Big account = large dollar losses, small account = small dollar losses.
With a meager $5k deposit account, the guy was down 80% of his account in 2 trading days....as he started those trades down $1000 already.
What's important are the LESSONS learned:
no discipline
wishful thinking
refusing advice
overleveraged
no stop losses used
etc
All can destroy an account.
 
It's part of a learning experience. People should read this and learn as much as they can, that is the purpose of elite trader. Bottom line, if this thread cna help one guy mitigate his risk then the thread could be worht millions in losses that nay never happen. Maybe, based on this thread, a person will not walk away and go to the toilet without a stop loss order. And that is what this thread is all about!!
 
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