How to lose $31k in one trade

[wayneL]

http://highprobability.blogspot.com/2008/01/31k-goodbye.html

Poor bastard

Follow his demise from a few posts down http://highprobability.blogspot.com/

 

[Sean K]

http://highprobability.blogspot.com/2008/01/31k-goodbye.html

Poor bastard

Follow his demise from a few posts down http://highprobability.blogspot.com/

Good lesson for him.

I'm considering this point:

Now is probably a good time to go long now that I sold out.

 

[theasxgorilla]

This is why I sit on the sidelines like a pussy. I used to trade discretionary and like to think I have enough of a feel for when the market is happening is such a way that I can't manage it. Swing-traders who manage on intraday charts, wade on in and clean up my friends. Those of us who don't have such agility as you, watch in admiration.

31k eh...that sucks.

 

[SGB]

I feel for the guy but obviously there were no contingency plans in place if the trade went sour.
I still think he hasn't learn his lesson though by his last comment, QUOTE "Now is probably a good time to go long now that I sold out."
Trying to pick a bottom in this enviroment is one hardest games to play.

 

[tayser]

This is why I sit on the sidelines like a pussy. I used to trade discretionary and like to think I have enough of a feel for when the market is happening is such a way that I can't manage it. Swing-traders who manage on intraday charts, wade on in and clean up my friends. Those of us who don't have such agility as you, watch in admiration.

31k eh...that sucks.

Get into currencies my friend - 10 pips on AUDJPY every day will keep you more than occupied whilst equities get sold in the ars3!

 

[Bushman]

I think this is even more poignant- from further down in the blog. Dangers of spending all weekend trading perhaps. Poor bugger - $31k down, alone and not getting laid. At least he is has good intentions in his wish to contribe to society.

'What do I want out of Life?
I have all of the things accomplished in the list above except-
Fall in love,
Contribute to society (unless you include my third tier blog)
Make a lot of Money
Stop procrastinating (impossible), and Have more sex'

 

[tronic72]

I've lost 10K since November and I'm kicking myself! And that's over nearly 3 months!

I lost most of my money over night and that's a lesson I've learnt. I simply won't hold a position is a sliding Market EVER again. But that sort of loss in a single trade is just crazy.

I'm sorry but I can't feel sorry or pity for someone that is that greedy and dumb. It's not like there weren't about a million signs that should have given him cause for extreme caution.

 

[Nathan_b]

many will loose that today..
some great buying there, unfortunately im down too...

 

[Trembling Hand]

For some reason that's a scary read.

I'm sure everyone is shaking their head at this fool. But it takes just one brain snap and its all over. I have read his blog from time to time and I got to say when he temporarily changed the name to 'high probability BLOW UP' I thought that was more like it. But just goes to show.

One trade is all that it takes. Tough game.

 

[Temjin]

Such a classic textbook blow up. Everything was in place to suggest he will ruin his account sooner or later. $31k is peanuts compared to what others are losing out there anyway.

 

[chops_a_must]

For some reason that's a scary read.

I'm sure everyone is shaking their head at this fool. But it takes just one brain snap and its all over. I have read his blog from time to time and I got to say when he temporarily changed the name to 'high probability BLOW UP' I thought that was more like it. But just goes to show.

One trade is all that it takes. Tough game.

Yep. Reading even a bit of his blog, it's quite clear he's a gambler not a trader.

But ROFL, he now has a link for Donations. Ahahahaha!

I've gone through a few of his trading set ups. I can't make heads or tales of most of them, and I'm not exactly a dumb guy. Which goes to show the age old adage: Keep It Simple Stupid, works. The more complex the entry or other criteria, the more likely it's gonna have problems in practice. I must admit, most of my short term trading rules/ plans/ criteria, whatever you want to call them, are between about 4 and 10 sentences long.

It's pretty good for a young futures trader like me to read this sort of stuff. Especially seeing as I haven't blown up yet, which kind of surprises me given the market atm. But then again, my biggest problem seems to be having stops too tight, rather than allowing them too much room.

 

[Mofra]

Interesting enough reading the comments to his final post.
I have to admit I lost a decent chunk of my trading capital on a single position in 2002 and it was the most expensive yet the most important lesson
I've ever learnt.

As perverse at this may sound at this juncture, the guy may come back to the market in a few months and find he is profitable, being more risk adverse & MM conscious.

 

[>Apocalypto<]

Such a classic textbook blow up. Everything was in place to suggest he will ruin his account sooner or later. $31k is peanuts compared to what others are losing out there anyway.

fair comment Temjin.

how is your parents money going u pull out before the sell off?

I feel for the guy, I have been there before lost a heap in a short time. 31k in a day is a lot in most peoples language, I hope it has not ruined the fella.

Temjin,

If you are also getting hit. I don't think you're in a position to make those kinds of comments.

anyway........................

 

[>Apocalypto<]

For some reason that's a scary read.

I'm sure everyone is shaking their head at this fool. But it takes just one brain snap and its all over. I have read his blog from time to time and I got to say when he temporarily changed the name to 'high probability BLOW UP' I thought that was more like it. But just goes to show.

One trade is all that it takes. Tough game.

Great Post TH,

It can happen to anyone at any time that's the scary thing......

 

[>Apocalypto<]

Yep. Reading even a bit of his blog, it's quite clear he's a gambler not a trader.

But ROFL, he now has a link for Donations. Ahahahaha!

I've gone through a few of his trading set ups. I can't make heads or tales of most of them, and I'm not exactly a dumb guy. Which goes to show the age old adage: Keep It Simple Stupid, works. The more complex the entry or other criteria, the more likely it's gonna have problems in practice. I must admit, most of my short term trading rules/ plans/ criteria, whatever you want to call them, are between about 4 and 10 sentences long.

It's pretty good for a young futures trader like me to read this sort of stuff. Especially seeing as I haven't blown up yet, which kind of surprises me given the market atm. But then again, my biggest problem seems to be having stops too tight, rather than allowing them too much room.

Over confidence is another downfall chops!

 

[vishalt]

I'm going to publish this guy at my work's magazine.

 

[Trembling Hand]

Great Post TH,

It can happen to anyone at any time that's the scary thing......

We would all like to think it couldn't happen to us. But if you use leverage the bottom line is it can. I use leverage big time.

I always have in the back of my mind the need to have a good bit of $$ stored away in a cabinet behind a glass window. With something written on it like "In case of complete brain fade smash and start again"

Hope I never need it but its there.

 

[Temjin]

fair comment Temjin.

how is your parents money going u pull out before the sell off?

Only went down a bit during the sell off cos everything was sold off including the gold/silver ETF and the gold shares. But it's back up before the sell off again lately. So I was pretty much on the sideline, had to be rational and not risk my parent's money on speculating without a system. hehe Gold/Silver ETF alone accounts for almost 75% of the family portfolio, gold shares account for the rest. So I'm quite protected from this portfolio in times like this. (but who knows there might be a gold sell off!)

I feel for the guy, I have been there before lost a heap in a short time. 31k in a day is a lot in most peoples language, I hope it has not ruined the fella.

Temjin,

If you are also getting hit. I don't think you're in a position to make those kinds of comments.

anyway........................

Don't get me wrong. I have sympathy for the guy as well. He is brave enough to admit it out in public on his blog. I just hope he learns from it and restart again.

What I was trying to convey is everyone can learn from his mistakes as well and his blog is one classic textbook case.

Things like over-confidence, complex & unproven system, lack of discipline to enforce stops, oversized position relative to account balance, psychological biases, ego, etc, etc. The list goes on.

And it's not like I haven't got "hitten" before. The initial subprime mess did hurt me a fair bit.

 

[happytrader]

Sounds like this guy got away with not honouring his stop losses for quite sometime. However, the natural law of, 'you cannot get something for nothing' or 'there no such thing as a free lunch' finally caught up with him.

No doubt when he realises this, he will do very well indeed.

Cheers
Happytrader