Losing CFD long position

[Triathlete]

Re: XAO Banter Thread

That reminds me of me!

Lost 125% of my initial 5 figure account on a single trade - all in few days. I had added more money in the 'hope' that the losing trade would swing the other way. Couldn't sleep while I was leveraged to the hilt and the price would swing by few thousands. Finally, I couldn't stand the pain and closed the trade and went to bed. It was the first time I could sleep peacefully.

The weeks after I couldn't push any buttons and make trades. I took couple of weeks off and did not trade. Later, when I did, my confidence was completely crushed and I would trade micro contracts. Took me couple of years of slow trading to make up the numbers. Luckily, I had good friends and who helped me focus on trading rather than money.

Anybody who tells me that they can handle 50K loss without emotional setback is a lying through the teeth. One must be filthy rich or an insane ignoramus to suffer such senseless loss and treat it as 'cost' of trading.

It all depends on that persons trading account....I would expect that a smart trader who has encountered 50k loss would have a minimum account of 2.5 million and closer to 5 million....my opinion only though.....

 

[tech/a]

Re: XAO Banter Thread

It all depends on that persons trading account....I would expect that a smart trader who has encountered 50k loss would have a minimum account of 2.5 million and closer to 5 million....my opinion only though.....

Ha ha
Gets even more fanciful
Anyone with over a Mill didn't
Get there without an understanding
Of money management.

They wouldn't be 23 posting finger
Painting on a forum.

 

[Kelly]

So then you cut your losses on the asx200 trade by the look of it?
Can you share with us, the rest of your story? When you started trading etc.? How you built that account up?

I still have the ASX200 position open (now at 29k loss)

I stated trading at the end of July.
I had absolutely no experience, I just thought it might be fun & I was interested to see if I would be any good at it. Started off small, testing the waters... got a bit more confident and started playing with larger amounts.

Anybody who tells me that they can handle 50K loss without emotional setback is a lying through the teeth.

I'm wasn't really upset about the 42k loss as it meant I was breaking even, which I was absolutely fine with, seeing it could have been so much worse for a newbie like me.
But I was very upset about being called a fake, troll etc, stating that my trading is so shocking that I can't be real... That's why I posted the photo with the 'finger' ... to say "hey I am real thankyou"

having a "gambling is fun" attitude is not normal for real traders which is why I called it like I saw it.

"gambling can be fun" - that was just me 'trying' to be smart/funny to Klogg who said "If you don't really know, then why are you risking your money?"
I found out CFD trading was referred to a 'gambling' after I already started :-/
My life experience with gambling has been about $100 in pokies, 3 lotto tickets and maybe 5 horse bets.

 

[Lone Wolf]

I found out CFD trading was referred to a 'gambling' after I already started :-/

Trading CFD's doesn't make you a gambler, no more than other trading methods at least. It's just a tool. But people often use it to gamble due to the high leverage available and low minimum deposits required to start an account.

Trading is a bit like gambling in a casino. Each time a bet is made both the casino and the punter are risking money, nobody knows who will win. So why is a casino a business and the punter a gambler? Because the casino knows it has an edge and it knows what that edge is. It doesn't know if the next bet will win or lose, but it knows that the more bets that get placed, the more money it will ultimately make. The casino approaches the game as a business, the punter approaches the game with nothing but wishful thinking.

I know you got off to a rough start here, but I hope you find some valuable information around this forum (it's certainly there if you look) and learn to approach trading as a profitable business. And although you shouldn't need to rely on it... Good luck.

 

[Wysiwyg]

Trading CFD's doesn't make you a gambler, no more than other trading methods at least.

Yes it all about having a thorough understanding of risk and having a choker chain on it at all times. Arguably the holy grail of trading.

 

[barney]

"gambling can be fun" - that was just me 'trying' to be smart/funny to Klogg who said "If you don't really know, then why are you risking your money?"

Its all good .... all your responses make total sense now that I have the full picture I'm glad you've displayed the ticker to hang around after a bit of a barrage ..... that IS the trait of a trader!

I'm actually more interested in how you accumulated, was it 3 ?? investment properties at such a young age?

I still have the ASX200 position open (now at 29k loss)

You still have some serious decisions to make in the near term methinks ...... people cant give you direct advice but your current position might make an interesting technical analysis training exercise if any of our more advanced techno's would like to jump in and give an opinion Even better, if you post up how you are likely to handle your current position given the possible scenarios .... that might create some beneficial discussion. In the short term lets hope this trade works out so you can put it behind you and learn more on the next one ..... with maybe a bit less risk!!!

 

[Kelly]

I'm actually more interested in how you accumulated, was it 3 ?? investment properties at such a young age?

Oops, that was an unintentional optimistic typo! 3 properties, 2 are investment. 1 we live in.
Purchased a 3 bedroom townhouse in Noble Park when they were cheap (260k in 2007, now worth 420k) and then another one a couple of years later. My partner of 8 years pays half the repayments.
I have a boarder who has lived with me for 9 years, before my partner even moved in. He is great, and I'm sure the extra $120 /week plus bills has helped speed the repayments up too.

Maybe it's my smart living that is the key? Shun excessive consumerism, don't waste food, don't buy stuff you don't need, don't throw things away before trying to fix them, and only buy a new car (new '2nd hand') when your old one is pretty much dead!
But we cannot have too many people following this lifestyle, otherwise it will affect the stock market!

 

[tech/a]

they were cheap (260k in2007, now worth 420k)

Thought you were 23??

How'd you get a bank loan at 14?
Married at 15?

(Patiently waiting for a full fingered reply)

 

[Habakkuk]

Thought you were 23??

How'd you get a bank loan at 14?
Married at 15?

(Patiently waiting for a full fingered reply)

You thought wrong. She never said she was 23.

 

[Kelly]

They were just having a joke...
(add 14 years to that!)

BTW Gringott's Bank has a habit to psycho-analyse anyone who posts... You could post a comma and he will try to predict that you are 23 year, Central European with an unhappy marriage, most likely blonde and have a strong desire to be successful due to some childhood issue.
And he's most usually wrong, just like his trading

 

[CanOz]

Oops, that was an unintentional optimistic typo! 3 properties, 2 are investment. 1 we live in.
Purchased a 3 bedroom townhouse in Noble Park when they were cheap (260k in 2007, now worth 420k) and then another one a couple of years later. My partner of 8 years pays half the repayments.
I have a boarder who has lived with me for 9 years, before my partner even moved in. He is great, and I'm sure the extra $120 /week plus bills has helped speed the repayments up too.

Maybe it's my smart living that is the key? Shun excessive consumerism, don't waste food, don't buy stuff you don't need, don't throw things away before trying to fix them, and only buy a new car (new '2nd hand') when your old one is pretty much dead!
But we cannot have too many people following this lifestyle, otherwise it will affect the stock market!

Interesting Kelly, so tell us about how you started in the market and what guided your trade decisions....Have you read any books? How do you size your positions?

 

[cynic]

I am really glad that kelly hasn't allowed the rough introduction to ASF to deter her from continued participation.

The demands placed by a community on proving credibility, whilst an unfortunate necessity at times, can be a distraction to the newcomer from the somewhat onerous task of deriving profits from the market.

As far as I am concerned, kelly has proven herself to be genuine in a delightfully spirited fashion.

Much as I share others curiosity, and both welcome and relish her continued input, I do hope that kelly doesn't feel obliged to answer all questions posed.

In my opinion, members need to have the freedom to limit the extent of their personal sharing to the confines of their comfort zone.

 

[captain black]

Good post cynic.

As far as I am concerned, kelly has proven herself to be genuine in a delightfully spirited fashion.

+1

A belated welcome to ASF Kelly

 

[tech/a]

They were just having a joke...
(add 14 years to that!)

Ok see that now.

 

[notting]

Stop saying it was a rough introduction
It was nothing.

 

[barney]

They were just having a joke...
(add 14 years to that!)

So 2 Investment properties plus your own live in property at 37 y.o. ........ I think you're doing ok


I assume your CFD position is now back in the black ..... If so that is great, but please be careful you don't confuse good fortune with good trading. Treat this trade as a get out of jail free card and perhaps consider tightening up on the risk from now on Good luck with it.

 

[Kelly]

I assume your CFD position is now back in the black ..... If so that is great, but please be careful you don't confuse good fortune with good trading. Treat this trade as a get out of jail free card and perhaps consider tightening up on the risk from now on Good luck with it.

Yes, ASX closed off at $15k loss. Then I withdrew all the money I originally deposited into the account plus $23k profit. I was a bit worried as I heard some bad things about Plus500 not paying out, but all is good.
Still have 16k profit sitting in Plus500 to 'play' with, but that could disappear pretty quickly! If it does then I am pretty darn happy I made 23k from my experience, and hope to come back when I learn more about this crazy game! What a roller coaster