Thursday, January 24, 2008

Just quit, walk away,


Lets get the record straight.

I day trade Part Time.
I work 40hrs/week like every other avg. American at a good paying job with people I like.
My trading account IS NOT MY LIFE SAVINGS, even though I said it in my video. I've had many bad days and never would want to be totally wiped out of all my assets. I realize that my trading account can be lost, and that trading is very dangerous, and that you should only invest/trade what you can afford to lose.(RULE #1)
I started with less then 10k in the account last year.

I've made good returns trading futures

I have a tendency to lose a lot of my gains in one day from poor discipline. And I should use daily loss limits to avoid this from happening in the future.

My Trading blowups


I'm a Trader, and each day I learn more about the markets and I get better.
Truth be told, I lost most of my account in the first 6 months when I first started trading 2 years ago, but I didn't completely wash out, I traded small, stayed focused and made back my stake.

There have been some good comments that I would like to quote/address.

1. Easy to say "take a break, walk away, etc" but daytraders know how it is. Like everyone else who's on auto-pilot to wake up and go to your job, this is what a daytrader does. Has nothing to do with addiction or anything. People with godawful 2 hour commutes to go to their sickening desk job every damn day of their lives aren't addicted to it.

Unless a trader is totally liquidated by his/her broker, unless he's got nothing left in the account to trade with, I'm know 90% of traders would be doing the same damn thing: getting right back on the horse. Another 5% might not be laying on trades immediately the next day, but they'd turn on their computers and see what's happening with the markets. The remaining 5% would walk away or take a sustained break, and good for them. Some people have a bad day at the office and take a "leave of absence" too. Ironically, that's actually frowned upon as irresponsible and weak in society. A daytrader shows up to work after taking a horrendous hit, and everyone's ready to strap the guy in a gurney for a prolonged vacation for deep introspection and meditation. Sure, everyone's mental makeup is different, but in this case, I think HPT is doing what the vast majority of us active traders would do.

2.Daytrading is easy.

I could get anyone with a working eye and a stick taped to their stump up and trading online in a day.

The only hard thing is keeping your sanity for the long haul since it's possible you may put in 100 hours/week and lose money for the week, month, year. Plus, it's very lonely so you'll be flocking to the idiots on CNBC, chatrooms and blogs for cameraderie. Plus, all your family & friends will deem you a loser & societal misfit until proven otherwise (i.e. you're making insane amounts of money).

3.TMK500 said...It's clear you've touched a resonant emotion in a lot folks and have generated more comments and responses on your abberant large loss than the sum total of interest in your ability to properly read order flow, exhaustion spikes and intermarket analysis.

For whatever reason, you've chosen this public cathartic path to "deal" with the situation ... "OK"... it's unique and it's your way of coping: kudos.

Now, Go To Ground ... get back to your roots and your "edge". Is your edge on market timing the larger swings or grinding it out on the short term interval? Do that which feels comfortable because you've practiced the competent trade to the point of being bored and pay your way through life -- enjoy the bounty that your screen time, methodology and unique "day to day" methods have afforded you. The legacy HPT trader stayed on the positive side of the equity curve week in and week out without the account crippling blowups.

You've already demonstrated time and time again that you've discovered how to exploit and execute on your "edge" in grinder mode .... and, you have done so without investing a bazillion $$$ in a bunch of silly retail trading seminars. You self education, unique intermarket approach for trade management and ability to read order flow has seperated you from a "herd" of retail mutts who refuse to do the hard work and continue to shell out $$$ for the latest "squiggly line" indicator panacea.

Finally, my parting thought --- "It's OK to be successful." I know that sounds like psychobabble tripe BS, but you've set yourself up for the "Big One" time and time again after being on a pretty decent equity run. I've seen the type, I know the type, I am "the type" --- until you believe that you really deserve to consitently be on the winning side, you'll find a way to sabotage yourself and engage, once again, in a cathartic drama for all to hear and see around the world.

I'm looking forward to your future posts that continue to show the detailed analysis of why you executed a particular trade in a particular way and justify the reasoning for taking that trade a 1000 times again.

4.Tim Knight said...

We've all been there. And the anonymous jerks telling you that you got what you deserved can fuck themselves. I'm just sayin'.

5.bigbear said...

i feel your pain.

IB auto-closed my position of 8 NQs 1/2 point above limit down.

my realized losses came up to nearly 30k.

after the fed cut and bounce, i could not get back in to reduce losses as my excess liquidity was only enough to open 1 position.

so we learn ...

6. My buddy DehTrader has also taken a beating from the recent drop, as I'm sure many investors/traders have. Simply put, Trading is a tough business.

14 comments:

Brian on 12:41 AM said...

Daily loss limits should make your trading more robust. But it'll always be tough to prepare for black swans. SocGen's unwinding positions may have had a role in the market turmoil over the past few days: http://ftalphaville.ft.com/blog/2008/01/24/10424/the-socgen-mega-fraud-lets-start-with-some-text-and-pictures/

jsp9999 on 1:11 AM said...

Darn! Let's learn how to blow up other people's money instead of our own petty cash. Good luck to your future.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aXOGRVr3yDDA&refer=home

Anonymous said...

$31,000 on his education and he just didn't learn a thing. Where did we go wrong honey?

Anonymous said...

"My trading account IS NOT MY LIFE SAVINGS, even though I said it in my video."

Dude, you are arguing with yourself. Using CAPS no less.

Seriously, this was fun but back off, you're eroding your reputation. Spare yourself and stick to basics.

WestCoastTrader said...

Anon,

Stop being a coward and let us know who you are. You are a sad, pathetic individual that gets pleasure out of attacking others on their own blog - the lowest form of life. Have you had one good thing to say about investing, about the lesson learned here? You obviously have not gone through something like this because you exhibit no heart or brains whatsoever. Tell us why you get pleasure saying the things you do and hiding behind "anon". Coward.

Anonymous said...

I suspect your problem isnt over leverage or no loss limit for the day.

I suspect you have a habit of averaging down, adding to losing positions. Nothing else can explain your mad decision to go long full margin on your account over a long weekend.

Get back to basics define a stop level per trade and stick to it. do not gamble by doubling up.

I expect that you wont be able to trade this way consistently.. you dont have the discipline .. yet.

Anonymous said...

Future zombie or Zombie future, whoever you are:

Your call (short JPM and long BSC) was spot on!

Great job! I am now a believer.

Where can I read your next prediction?

east coast winner said...

West Coast Loser:

Go back to your pathetic blog and stop bothering people on someone else's blog.

HPT didn't mind the posts, why do you make it your mission in life to be the blog police? Get over it!

Idiotic Loser!

future zombie said...

Talk about stupid comments:

JPM & BSC are trading in lockstep. If JPM is red and BSC green tomorrow, then you may very well be a zombie from the future.

Bwahaha!!

Anonymous said...

I think hpt will make over six figures this year alone. All you people hate it while you can.

Anonymous said...

HPT: it's clear that you're a serial self-sabotager. You've clearly put in the research and screen time to hone your skills as far as far as entry patterns. As an analogy to driving a car, you've mastered how to put the key in and turn the ignition. These are your setups and strategies.

As to trading size, how much research and screen time have you devoted to assessing when to trade 1 contract, when to add contract, when to go hogwild and make it a 10 contract entry from the start? Do you have any rules in set in stone as to your sizing methodology? This would be knowing how much pressure to apply to the gas pedal. I fear you have no such rules and gas the pedal sporadically.

As to stop losses and targets, do you have a set methodology? Do you peel off contracts at pre-set targets or go by feel? Do you set a stop loss or wing it? This is braking. Well, you get where I'm going. Successful active traders are 5 tool stars. You can't make it to The Show blessed only with a great arm or as a slugging, no glove DH or as a platoon late inning defensive specialist. Unlike baseball, trading isn't a team sport. You can't specialize in one facet of the trading game, you need all the skills from entry to exit, and be ready on a dime to do it again.

All's not lost. Read up more of Dr Brett's work, and certainly read some Mark Douglas (The Disciplined Trader, Trading in the Zone) for some much needed Driver's Ed. You're young and obviously have the determination, brains and perseverence, but repeatedly doing the same dumb things over again means you're simply not directly addressing your deficiencies. Going back to trading and "hoping" you don't make the same mistake the next time that situation arises is not fixing your problems.

Anonymous said...

car drivin is a good comparison. putting work in prediction is more common than in handling a position. But you can screen what you want, entries stay always a game. Exits are safe, you can see what is up with the position and your account. And in addition averaging down is attractive cause often it works quite good, that lures you quickly to a risky belief about how to spread the butter on bread. Feels like you could push the price in your direction. But for A/D you need more sophisticated skills than in dealing unvaried positions. averaging down too many times unmatched sizes with such a small account in swing mode and without tight stops kills the account sooner or later definitely. I would go back to paper trading and train to make money constantly with smale sizes. big size on wrong side doesnt count. not in such a small account and without any hedge. try to get your
equity curve smoother.

good luck

Sabrina on 3:32 PM said...

2 thoughts:
1. daily loss limits - you blow up a lot based on your website.

2. You might want to review the basics of support and resistance. I flipped through your "blow up" posts - and many had you buying at resistance or selling at support.

Anonymous said...

"I daytrade Part time" That's an oxymoron. You don't have the time nor the discipline to be a daytrader. Having said that, I wish you the best of luck.

Subscribe via email

Enter your email address:

Delivered by FeedBurner

 

High Probability Trade. Copyright 2008 All Rights Reserved Revolution Two Church theme by Brian Gardner Converted into Blogger Template by Bloganol dot com