Trader Loses $377,000 Day Trading TSLA

trader99 said:
You gotta remember this is trading and not charity work. I know some people have free discord channels etc. He's running a biz so he should charge people for the service he provides. That's how it works in capitalism.

Now, I think his sub provides stability of income. But since May of this year, he has been on fire. He turned $50K account into over $2M in a matter of months.

But remember it took him YEARS and YEARS to get here. He blew up his first few accounts ike everyone. Then got better.
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So $50k just appeared out of nowhere so he could start again?
 
farmerjohn1324 said:
The reason I would lose statistically over time is basically the bid/ask spread or commission. If I don't hedge, my "big wins" will cancel out my "big losses" and it amounts to the same thing.

It all boils down to being able to predict something. And to only make trades when I have good reason to think I will win. That's why I'm not worried about my RBM21 (Gasoline futures June 2021) even though I'm down $8,000 right now ($0.0538/contract) because I still think it will go up. This is based on a long-term economic view. Although I am starting to slightly worry about contango effects.
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That is where your problem is. The saying is "cut your losses and let your winners run." Your winners have to be several multiples of your losers. So, if you win say $500 on average and you lose say $150 on average, you will come out ahead and by a huge amount. Win average is irrelevant. You could win at 30-40% of the time and still make monies. Small losses is nothing, it is the big losses that eat up your profits or even your capital. Losing is part of trading and numerous small losses is preferred over a couple of very large losses. This is where risk management and position sizing comes into play.
 
qlai said:
Just to put this in perspective - He was about 800k up for the month (month!) with most of it via TSLA. He says he is still 400k up for the month. He was going for 1M month and got carried away.
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So the title should be: Tesla trader made 400K a month!!!
 
smallfil said:
That is where your problem is. The saying is "cut your losses and let your winners run." Your winners have to be several multiples of your losers. So, if you win say $500 on average and you lose say $150 on average, you will come out ahead and by a huge amount. Win average is irrelevant. You could win at 30-40% of the time and still make monies. Small losses is nothing, it is the big losses that eat up your profits or even your capital. Losing is part of trading and numerous small losses is preferred over a couple of very large losses. This is where risk management and position sizing comes into play.
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If your TP point is 2x as large as your SL, then you are 50% as likely to hit it. So it all equals out again.

It all goes back to having some way of accurately predicting.
 
trader99 said:
he blew his account when it was small. He had a full-time job as an mechanical engineer and saved up money. Eventually he got good enough to quit his full time job to do trading.
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Did I miss where he says how he bases his predictions?
 
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