What risk management lessons to learn from negative oil price event?

[systematictrader]

Not x

helpme_please,

There is NO lesson to be learned to a professional trader because price went negative.

I been trading CL everyday for 2 years. If you seriously trade everyday, then you are not stupid, you know when to trade and when not to trade. If you bullshitting around getting all excited trying to hit a quick a lick to brag to your buddies and co workers and forum buddies, then the market going to push your shit back. The market has a cake baked for those who is careless with risk.

I did not have problem trading CL when it went to $-37 because I use the right stop loss placement on that day just like I do any other day.

I did not care at all CL went to -$37. I just want to get the trade right, make the money and close my DOM.

It is too much news bullshit going on lately. Who cares if CL went to $-37 or $1000 in one day.

I just want to focus on my trades and make some money man. I don't care if CL goes to $200 on Monday or -$200, ALL I care about is did I make money while it goes either way. That is it. I don't even care why CL went negative, just want to get the trade right.

I no longer care "the why" of things. All I care about is did my PnL show green or red today. I want it to show green consistently as possible and watching the price daily.

Reading all that news stuff is a waste of time.

aring/knowing it went negative is like saying contract size doesnt matter
Lol

i dont think he asked about the why which you are right on that part

 

[SimpleMeLike]

May I ask which broker were you using to trade CL when prices went negative?

I was on the June contract when the May contract went negative. CTS broker

 

[Sekiyo]

I’d learn about stop loss.

 

[systematictrader]

I’d learn about stop loss.

U must be joking

 

[helpme_please]

I’d learn about stop loss.

Stop loss didn't work in this context. IF it did, there is no need to start this thread. Stop loss is the most basic risk management technique.

 

[Sekiyo]

Stop loss didn't work in this context. IF it did, there is no need to start this thread. Stop loss is the most basic risk management technique.

From what I understood,
It was assumed that 0 was the floor,
Hence no stop loss was used to limit risk.

Not sure why it wouldn’t work.
Because the broker rejects negative orders ?

Change broker then.

 

[Sekiyo]

Also it’s said :
Don’t trade what you don’t understand.

It’s sound risk management principle.

 

[helpme_please]

From what I understood,
It was assumed that 0 was the floor,
Hence no stop loss was used to limit risk.

Not sure why it wouldn’t work.
Because the broker rejects negative orders ?

Change broker then.

Broker software got confused and refused to accept orders with -ve price. This happened even with reputable brokers like Interactive Brokers.

 

[systematictrader]

Broker software got confused and refused to accept orders with -ve price. This happened even with reputable brokers like Interactive Brokers.

And tda

 

[wrbtrader]

Broker software got confused and refused to accept orders with -ve price. This happened even with reputable brokers like Interactive Brokers.

Why don't they get confused and exit the trade in your favour ? (sarcasm)

wrbtrader