How much did you lose in your first year?

[Jesse Livermore]

Hi People,

I have been reading through Dr. Alexander Elder's "Come into my Trading Room", which he states the first year trader should expect to lose at least 10% of their capital. The purpose of this thread is to ask members how much they lost (or made (which would destroy Elder's theory)) in their first year trading?

Jesse Livermore

 

[canny]

I think the first 3 to 4 months was the worst for me.
Found a big difference between paper trading and real trading. You realise that you're being dishonest with yourself on paper!!!
Need to establish patterns and discipline.
I probably lost a bit more than 10% in that time - but slowly brought it back round.

 

[bvbfan]

I was down 40% at one stage after about 4 months but ended up 35% after 12months

 

[It's Snake Pliskin]

I lost about 6% in the first financial year. Learned a lot form it. I have never paper traded and don't believe in it. It's like fighting a punching bag. Mentally it is different. Works for some though, can't discount it for others.

 

[tech/a]

First year $20k.
Investments in books,software and Securities Institute courses,seminars etc another $10K or so.

But with any business even if its part time you'll need to make an initial investment.

 

[Knobby22]

Good to see such honesty from everyone.
I traded through a stockbroker and didn't lose at all for the first five years however when I went online I found I was too confident, too active and acted too quickly. I went backward $20,000.

 

[mit]

10k on warrants going long the index prior to March 2003 and going short the index after March 2003. Duh!

MIT

 

[Battman64]

Spent very little in my first year.
Made money buying Public floats and Stagging them.
Spent thousands studying Futures in my first year.
First short trade made $1000 overnight...was hooked.
Lost $5000 after that.
Spent thousands more on education.

 

[Fleeta]

Started in June 99 buying tech stocks.....you know how this one ends!!

I lost over 50% before I pulled out!!! Lucky I didn't have as much money then as I do now!!

 

[Battman64]

"First short trade made $1000 overnight...was hooked."

Monday 4th March 1996
First trading day after the election.

We were expecting a High on a "Gann Time Frame"
SPI High was 2374 and we closed lower 2355
(I knew about the Double Top 2368 3rd Feb '94)
Sold the confirmation of this High & held overnight.

 

[Battman64]

I had caught the Gann bug and thought I knew what I was doing.
Went on to lose my first account and then spent thousands on study.
The journey has been fantastic, though often painful.

 

[TjamesX]

Wouldn't class myself as a trader.....

Am currently almost at the end of my first 12 months in the stockmarket, and am happy to report around 18 - 19% return on capital. I think the last 12 months has been a good time to be a beginner (kinda like those entering real estate around 2000-02), we'll see what the future holds. Definitly learnt a lot in that time.

 

[VTyro]

100%

And it took me another 4 years to get it back!

Tyro

 

[skin]

first buy was Roma Petroleum (RPM), in mid 1990's. I even encouraged my 3 sons to particpate - floated at 20cents went down to 1 cents and broker said to sell them off for a loss. I haven't heard the last of this one - 3 sons - have paid them back their $100 each. Broker has lost tens of thousands - AMN, Gympie Gold - so am having a go myself. My trading account is nearly always at 20% loss - and I sell off my gains. Am waiting for one of my current ones to "gallop away" to get rid of my loss forever. Patience is a virtue.

 

[Mofra]

I did everything backwards - started with covered calls (Feb01 CWO, the Mar01 MIM - I'm a stock jinx!). So made profits for a while, got cocky and pushed margins with written puts before one disasterous trade took most of my profits from over a year. THEN spend many hours studying, went back to equities only before returning to options last year.

 

[JetDollars]

01/11/04 - 30/06/05 - Lose 25% ($20k) of total capital $$80K.

Stop trading for 13 days now.

Now rewrite new trading plan and system and try to work out why I lose.

 

[RodC]

I don't think I've had a year where I've lost overall. But I've certainly had some periods within some of those years where I've lost.

This has has usually happened wnen my ego has got ahead of my abilities (eg: trading warrants with no idea of volatility or time decay and thinking I knew better than the market).

Hopefully I've put most of that behind me, I now have no hesitation in setting a stop (and acting on it) and I no longer have favourites.

Rod.

 

[enigmatic]

Thread been quiet for some time but what the hell

25k arround 65% been another year and a bit more of that financial crisis and back to 43% loss on my intial outlay.

must admit mid Nov was down more then 65% HAHA.. was a tough leason but I hope I learnt it.. Trailing and stop losses Must have Current Open trades.. not including long and Oh you definitely stuffed that investment not included...

capital risked was 2475.40 current unrealised profit 879.275 Currently up 1049.25

So my new Plan seems to be paying off.. So far..

 

[metric]

doubled my money, lost the profits and came out even......cheap education.

i wont get back into the market for a few months yet....

 

[enigmatic]

Perfect time to be getting in and out of the market. aslong as you have a good strat which keeps your losses to a min and lets you ride the ups you should do good.. IMO