what to do when you're screwed
- Thread starter Gordon Gekko
- Start date
The point of trading even when you're net negative is the slim hope that the market will turn around in the future. I'll admit that this is a gambler's mentality that afflicts many experienced traders and novices alike. I know many traders that are net negative for the past two years but are stubbornly hanging on praying for the next bull market. They'd be better off getting a job at McDonald's. At least this way, they can't dig a deeper hole than they're already in!
good thread, its therapeutic to read.
when i first started i was probably lucky and doubled my account in months, thought i was the big swinging D of the market. i made a lot of money starting out, unfortunaley i ended up losing more!
just like everyone else i was down and out too, and after facing my biggest losing trade in my career (knock on wood) letting a stock go 10 points against me, right about the time when i thought i should do some size and and swing for the fences like sammy. that was like a smack in the face, wake up call.
i then realized i had two choices: quit or lick my wounds and figure out what i was doing wrong and find a way to make it work.
i decided i should scrap my style altogether and start from square one. I identified my weaknesses and mistakes that allowed me to get there, promised myself never to repeat (and never did), and instead of trying to make it all back with some big trades, i set out just to make it back bit by bit.
after awhile i didnt even care about making money, just wanted to gain experience, see what worked what didnt, i would trade even as little as 50s but mostly 100s, and really focused on risk management, that was my biggest weakness. then i was happy to book ANY profit, $20-50 and i was happy, a profit is a profit; book profits! for me i guess i had to learn how to not lose money before i figured out how to make it.
anyway same thing happened to me too when the SEC in all of their brilliance placed that jackass daytrade rule. not having the dough i again had to change my style and make it work and learned to position trade.
i think you would benefit by either taking a break or do what i did. get your self a part time job and try position trading, you dont need to spend as much time trading during the day, software needs will be less costly, less stressful. figure out what your weaknesses are and focus on those, starting with your biggest.
look for small profits or at least breakeven more and get your sea legs back, build confidence back slowly with booking profits no matter how small. anyway that's what worked for me, thanks for letting me take the couch trip.
when i first started i was probably lucky and doubled my account in months, thought i was the big swinging D of the market. i made a lot of money starting out, unfortunaley i ended up losing more!
just like everyone else i was down and out too, and after facing my biggest losing trade in my career (knock on wood) letting a stock go 10 points against me, right about the time when i thought i should do some size and and swing for the fences like sammy. that was like a smack in the face, wake up call.
i then realized i had two choices: quit or lick my wounds and figure out what i was doing wrong and find a way to make it work.
i decided i should scrap my style altogether and start from square one. I identified my weaknesses and mistakes that allowed me to get there, promised myself never to repeat (and never did), and instead of trying to make it all back with some big trades, i set out just to make it back bit by bit.
after awhile i didnt even care about making money, just wanted to gain experience, see what worked what didnt, i would trade even as little as 50s but mostly 100s, and really focused on risk management, that was my biggest weakness. then i was happy to book ANY profit, $20-50 and i was happy, a profit is a profit; book profits! for me i guess i had to learn how to not lose money before i figured out how to make it.
anyway same thing happened to me too when the SEC in all of their brilliance placed that jackass daytrade rule. not having the dough i again had to change my style and make it work and learned to position trade.
i think you would benefit by either taking a break or do what i did. get your self a part time job and try position trading, you dont need to spend as much time trading during the day, software needs will be less costly, less stressful. figure out what your weaknesses are and focus on those, starting with your biggest.
look for small profits or at least breakeven more and get your sea legs back, build confidence back slowly with booking profits no matter how small. anyway that's what worked for me, thanks for letting me take the couch trip.
NYC working at MCd's?
Bwa ha hahahahhahahahahahahaha.
lol
I can just see this skit:
NYC: Hey boss, I am quitting - I can't take trading anymore - every time I take a trade I feel like I just swallowed a bottle of mylanta [pulling his pants out his butt] - I am going to McD's, at least it is sure money.
Eugene: NYC, look, I'LL GIVE YOU McD's wages to keep trading - OK?
nitro
trading is probably a little easier in a bull market, and if this decline continues on for much longer, there's not going to be much of a stock market left to trade, but to say that "the point of trading even when you're net negative is the slim hope that the market will turn around in the future" is beyond ridiculous.
and as far as comparing corporate work to trading, or comparing any form of making money to another, it's obviously useless.
in defence of corporate jobs (in whatever capacity), it too has its many highlights and benefits. i'm gonna sound like a real goody-two-shoes/bosses pet/pollyanna idealist if i list the things that i think are great about working for a corporation, so i'll just say this: like most things in life, it is largely a matter of attitude whether or not one will enjoy or succeed in one's work. the worker who "just knows" every boss is singling HIM out, who thinks every co-worker is conspiring against him, who believes the only way up the ladder is to step on everyone else, or ass-kiss your way to the top, and who is convinced that HIS is the worst job in the world, is no doubt gonna hate working for a corporation.
You forgot to read my next line: "I'll admit that this is a gambler's mentality that afflicts many experienced traders and novices alike." This is a criticism of that way of thinking.
I am in no way endorsing this behavior but unfortunately, that is the way many traders think. Fortunately for me, I threw in the towel many months ago to rejoin the corporate world. I DO dabble with some short swing trades in my E*trade account, though.
GG
You have gotten a lot of good advice from a cross of people here, but the best suggestion I have read is POST YOUR TRADES. If you are not trading now see if you can recreate some of your recent past trades.
If you are not trading now, then paper trade and post them. Paper trading for someone who has already a lot of experience is not the same as someone who has never traded. I have paper traded and pretty much have the same emotions.
If you are trading alone from home, why not consider setting up a small chat line with a few traders where you can call and advise each other. You could also do this by phone on a conference call.
I won't go over the advice you have been given by the guys here, but really read them. I notice your opening was that you really know. In theory maybe, but it's falling down in practice as your account testifies.
Risk management is probably more important than anything else do you really practice good risk management?
You mentioned that you started back in the late 90's. I'm sure you remember the some stocks moved 5 to $15.00 several times a day. Have you changed with the times? Stocks are now moving .10 to .40 cents. You can still make money but you have to change a lot entry and exits.
Looking forward to seeing you post some of your trades.
You have gotten a lot of good advice from a cross of people here, but the best suggestion I have read is POST YOUR TRADES. If you are not trading now see if you can recreate some of your recent past trades.
If you are not trading now, then paper trade and post them. Paper trading for someone who has already a lot of experience is not the same as someone who has never traded. I have paper traded and pretty much have the same emotions.
If you are trading alone from home, why not consider setting up a small chat line with a few traders where you can call and advise each other. You could also do this by phone on a conference call.
I won't go over the advice you have been given by the guys here, but really read them. I notice your opening was that you really know. In theory maybe, but it's falling down in practice as your account testifies.
Risk management is probably more important than anything else do you really practice good risk management?
You mentioned that you started back in the late 90's. I'm sure you remember the some stocks moved 5 to $15.00 several times a day. Have you changed with the times? Stocks are now moving .10 to .40 cents. You can still make money but you have to change a lot entry and exits.
Looking forward to seeing you post some of your trades.
