Wednesday, June 27, 2007

June 27 Trade Summary -$9,500

Well I was up over 1k, and then I decided to go short ER2 around noon EST. I suffered another catastrophic day from an unusual trading day. Days like today make you want to quit. Overleveraged and stops placed too wide. I'm done. I don't know if I'm trading anymore. This really pisses me off. I was thinking of buying some vix puts this morning and going long ER2. Greed got me in the end, wanting to get breakeven. Have a good day, Sorry for taking down the VO guys, I'm probably done now.


Anonymous said...

Same case here, I was short YM in the afternoon and gave up 90% of my morning profits. I just wasn't paying attention to any of the indicators (AD bullish/TICK constantly up). Don't give up.

Dinosaur Trader on 2:33 PM said...


Listen, the VO is nothing.

Check the vid on Misstrade's site about his swing trade idea on the SPOOS...

Sounds like you're beat up. Better not to trade in a bad mental state (trust me, I know). Next week will probably be dead. Take that time to catch your breath.


Anonymous said...

Everybody will have their input when you post a large loss, but only you know if your losses are caused by poor discipline or an inadequate mental model of the markets.

WEDS trader on 4:17 PM said...

Hey HPT,

I got smashed yesterday as well. If you are feeling like quitting you should have a break. Make your rules and stick by them. I had a two week break last time I f#%&ed up bad and came back refreshed and sharp. Made it all back in the first three days.


Anonymous said...

I was down $12,000 on Jun 13th&14th speculating the Dow would break 13,200 level. Bought OEX 690 put at $4+ ended up selling at 40c just before the expiration. This single trade alone has wiped out almost half of my trading profits for thus far...had the same feeling as u do now...took some rest and reviewed my strategies& I'm ready to move on and take my game to the next level. Remember, always trust your strategies and dont let P/L or emotions take control of your trades.


Anonymous said...

Not that anything I or anybody will say would make you feel any better- I do know why this lose occurred, if your previous posted statements are any indication...

You are averaging into positions, which is just a different way of saying you are averaging down, waiting for a a little bump to make you whole again. The day you traded without charts seems to indicate such methods are still being utilized.

Can this work? Yes. However the method is unreasonably risky- holding through a huge "paper" loss waiting for a few ticks to get a "winning trade".

In order to survive using this method one has to two one of two things IMHO: either recognize the market as strongly trending and stand aside entirely. Or recognize the market is strongly trending and only take the signals that place you in direction of that trend (aka "Basic Trading 101" which savvy traders do not need to heed, but need to recognize none the less.)

I speak from experience of previously using such high risk methods and making 3000$ to 12000$ a day for a month and then letting a single trend day like today blast me in the ass for the entire month's gains and PLUS another 30 grand to just make it memorable.

Did I survive this? Yes. Did I trade right after this? No. I took a break and re-evaluated my methods. I went back to work. Work reminded me of why I liked trading. I went back to trading when I felt I appreciate it more and would treat it with the proper respect. I developed my method which gives me even better gains in any market. That humiliating day was the best thing that could have happened to me BECAUSE of how I chose to handle it afterwards.

Just one mans opinion and experience that may or may not be relevant to you at the moment. In any case, I understand the dark pit you find yourself in at the moment and wish to remind you when you chose see the better side of things vs purposely wallowing in the pain, things will improve rapidly.



Anonymous said...

Well said, J.

Hang in there, John. You're one of the best ... just pause and retool.


Jeff on 7:12 PM said...

In response to J-

One can be lucky for many many trades and make a banks worth of money. It only takes one day where something unforseen happens to blow it all up, or worse.

I say that if a trader can't say why his success is NOT due to luck, then one should have a clear plan for what to do when the streak ends, or the unexepected occurs.

HPT- sorry about your loss today.

Jeppetto on 7:28 PM said...
This comment has been removed by the author.
Jeppetto on 7:31 PM said...

John, I'm sorry about your loss today, and FWIW, I really hope you are not going to quit for good, because IMHO you are a very good trader, and an inspiration. Keep doing what you do and just be a little more conservative about your risk management and leverage, you know. I for one will miss your blog if you quit.

leon t on 7:52 PM said...

compared to last week, today was just a setback. i think you have a good strategy. wish i could read the charts. however, look at it this way. it took you a week to almost recoup your big loss. today's setback only puts you back where you were a week ago.i would not give up. trade smaller, regroup, whatever. quit never.
you have a valid strategy, you'll get back to breakeven,if it takes a month or two, so what. stick to it.
also give an email address i have a bunch of questions about your charts and strategies but i don't think it would work to ask them on the blog.
we're on your corner.

Anonymous said...

I am sorry to read about your loss. In the summer and fall of 2006, I blew 33K on a combo of calls in ACI, BTU, and CNX (right about the time when Amaranth dropped their 6 billions).

The inevitable depression will come. Mine lasted 3 agonizing weeks. I went back over every single trade, wrote down my mistakes, and posted them next to my monitor.

I made it back 5K at a time. It seemed like the longest 6 months of my life, but I finally got my $ back last month. You can do it, too. You can recover. Hang in there.

Take a break, but don't quit. This blog is incomplete without a chapter on your comeback.

Wishing you the best of good buys.


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