How do you recover from a £25,000 loss....

[Phantom666]

Phantom 'it made £350' was in response to someone saying that it was the way not to make money trading, certainly wasnt a boast as your post implies.

Also Phantom this was 'one' trade, i was very confident in the chosen market, indeed it is exactly where i thought it would be now, but my entry let me down badly. I dont trade this way 'all' trades.

I wasn't implying it was a boast at all.

I'm not interested in getting into an argument with you, I've tried to offer some helpful advice, but I think we see things radically differently. For example, you completely missed the point of my "so what" comment.

If I was you I would take a long break and do some serious thinking. But whatever, each to his own. Good luck with it.

 

[mrfigure]

what did you mean by 'so what' then ? I think weve all perceived text messages wrong at some point, you can only read the text and naturally you have a feeling for it. If you meant 'so what' as in whats the point your trying to make....the point was that the particular paper trade made money, despite someone saying it was a way not to make money....well it did. You can paper trade how the hell you want and this particular method worked, not that it would again, but it did on this occasion......and im certainly not interested in arguing.

 

[D70]

That's just bollox. The guy selling apples don't wildly swing his prices every few milliseconds and expect to have any customers left. It is important for people to realise these kinds of speculative gambling have very little to do with trading. The only real traders in the market are the large banks and institutions who have the capacity to carry positions. Everyone else are just fodder feed for them.

BeginnerJoe.
It isnt the guy selling the apples that makes the price....... is it. Let me know when the lights come on.

 

[dc2000]

my way

 

[timsk]

what did you mean by 'so what' then ?

Hi mrfigure,
There was a lottery winner once who used the date of his wife's / girlfriend's birthday as the 'logic' behind picking his winning numbers. Does his jackpot win validate this strategy and make it better (or worse) than any other strategy for selecting lottery numbers? By the same token, my interpretation of the 'so what ' comment is that one trade is meaningless by itself - it doesn't validate your approach. True enough, it doesn't invalidate it either, but you might be wise to test it extensively before putting real money at risk.
Tim.

 

[Phantom666]

Hi mrfigure,
There was a lottery winner once who used the date of his wife's / girlfriend's birthday as the 'logic' behind picking his winning numbers. Does his jackpot win validate this strategy and make it better (or worse) than any other strategy for selecting lottery numbers? By the same token, my interpretation of the 'so what ' comment is that one trade is meaningless by itself - it doesn't validate your approach. True enough, it doesn't invalidate it either, but you might be wise to test it extensively before putting real money at risk.
Tim.

Wot ee sed.

 

[mrfigure]

Absolutely agreed. It was a paper trade to test something out, it worked, nice to see thats all ! I think you will find reading back that i was highlighting the fact that it was nice to come back and test the water with something that worked. nothing to get excited about, think the 'paper trade' comment started another thread for some reason !

 

[Phantom666]

Absolutely agreed. It was a paper trade to test something out, it worked, nice to see thats all ! I think you will find reading back that i was highlighting the fact that it was nice to come back and test the water with something that worked. nothing to get excited about, think the 'paper trade' comment started another thread for some reason !

Threads just take on a life of their own, just how it goes. People love to have a barney I guess.

The answers to your problems might lie in a particular very well-known book about trading, now I think about it. You might get better advice in there than here (in fact, I know you will).

 

[mrfigure]

Theres actually been a couple of useful replies within this thread. Iv reflected on my trading, the trading that turned the 6 into 25. Alot of it was scalping.....with large position sizing, anything from £50 up. If i saw a profit - say £400, id take it, then look for another opportunity. There were rules in place, which were, the trade must always be in the direction of the trend....(hence why i tried something different for the paper trade). Secondly Trades were placed at or near daily support or resistance levels. additionally no trade was valid unless a reversal or continuation signal was confirmed by the following price action set by the close of the next sessions candle. I worked from 10 minute 30 minute and hourly charts.

 

[dc2000]

http://www.chrisperruna.com/2010/01/10/2010-stock-reading-list/

 

[Phantom666]

http://www.chrisperruna.com/2010/01/10/2010-stock-reading-list/

There's some good ones in there .

A pretty good list overall I think.

 

[Hoggums]

Theres actually been a couple of useful replies within this thread. Iv reflected on my trading, the trading that turned the 6 into 25. Alot of it was scalping.....with large position sizing, anything from £50 up. If i saw a profit - say £400, id take it, then look for another opportunity. There were rules in place, which were, the trade must always be in the direction of the trend....(hence why i tried something different for the paper trade). Secondly Trades were placed at or near daily support or resistance levels. additionally no trade was valid unless a reversal or continuation signal was confirmed by the following price action set by the close of the next sessions candle. I worked from 10 minute 30 minute and hourly charts.

We have no issues with your entries. They could be brilliant. However you never mention when you will take profits or loss.

In particular you don't have a clue what you are going to do if the trade goes into loss straight away and never ends up in profit. It appears you will hold on in the hope it will turn around. Most of the time it will but it only takes once for you to get that margin call and all those profits disappear in an instant.

This is why you will always blow up eventually. Trading on the premise you will always be right is stupid and arrogant.

 

[brewski1984]

Also Phantom this was 'one' trade, i was very confident in the chosen market, indeed it is exactly where i thought it would be now, but my entry let me down badly. I dont trade this way 'all' trades.

This comment really interested me, especially the way you highlighted the word "one". It doesn't matter whether you had 2 years worth of winning trades behind you and the next 500 would be winners, that "one" trade was always going to cost you everything.

It wasn't your entry that cost you 25k regardless of how many points away you were from being stopped out.

The thing that interests me is that I always wonder what the person on the other side of the trade is thinking. You went long, he went short. You were down 125 points, he was up 125 points. Now the market has come back and you would be up x amount of points and he would be down x amount of points (I haven't looked so I don't know exactly). Who was right?

 

[BeginnerJoe]

BeginnerJoe.
It isnt the guy selling the apples that makes the price....... is it. Let me know when the lights come on.

Clearly you need a new light bulb because the one your have is getting a bit dim.

You seriously think people here betting with their pocket change will move the price ? The other side of the trade will take your trade and instantly move the price against you to knock you out. Does that suggests you are moving the price or the apple seller is ? Supply and demand is only relevant when big banks trade with other big banks. You don't make a difference, other than being a minutest morsel to be picked over when the big banks have nothing better to do in the mean time.

 

[Shanghai]

The thing that interests me is that I always wonder what the person on the other side of the trade is thinking. You went long, he went short. You were down 125 points, he was up 125 points. Now the market has come back and you would be up x amount of points and he would be down x amount of points (I haven't looked so I don't know exactly). Who was right?

That's the great thing about trading. If both those traders were good and had their risk management sorted out then they could both have made money on the same market by taking different directions. On the other hand if they both used spanish stops and didn't understand risk management then they could have both lost their shirts.

 

[BeginnerJoe]

There were rules in place,

Those rules must be bollox to get your account wiped.

 

[maxima]

Alot of it was scalping.....with large position sizing, anything from £50 up.

I am curious - what SB allows you to scalp with such size? how many trades a day you did wich lasted less than 2 min ?

 

[the hare]

Hi mrfigure,
There was a lottery winner once who used the date of his wife's / girlfriend's birthday as the 'logic' behind picking his winning numbers.

A few years ago a man won the Spanish national lottery with a ticket that ended in the number 48. When asked how he'd picked the number he replied “I dreamed of the number 7 for seven nights in a row, and 7 times 7 is 48.”

I'll say no more, cats must remain in bags

 

[mrfigure]

IG Index

 

[mrfigure]

Mahi, yes my risk management on this particular trade was shocking and something that will be addressed when i trade again, I was just so confident in the trade i was prepared to go negative. Got stopped out 4 pips away i think.Looking at the dax now and the trade would be showing profits of 210 x £200 !