How To Lose Money Trading

[zupcon]

Trading without having a proven edge and knowing when the edge is present.

100% in agreement. However, I'll be pedantic. The very fastest way is to define an edge, then trade against that edge. To ensure a quick death, add excessive leverage, adverse risk reward, particularly inappropriate stops, and you've pretty much guaranteed a quick disaster.

Perhaps CYOF could elaborate if the answer he's seeking relates to practical methods, or if he's thinking more from a philosophical basis.

regards
zu

 

[CYOF]

I know my place in the food chain and I do respect what you do, just not the way you do it

That is off topic - but you may reply to posts by others as long as you do not detract from the purpose of the thread, or post silly statements that are intended to cause conflict.

 

[jacinto]

That is off topic - but you may reply to posts by others as long as you do not detract from the purpose of the thread, or post silly statements that are intended to cause conflict.

CYOF,

that reply by Priceman may be off topic, but he did ask you to say when would you say what is in your mind, and honest I do second that request.

Otherwise people are trying to answer a valid question that has several right answers, and your answer is not necessarily the only right answer, it is only what you think is the right answer.

So in fairness, in order to have an adequate debate I would ask you to answer your own question.

J

 

[CYOF]

It's a fair enough question and though there may be many different answers there's always one that comes first ....in any game ..and trading is game based...you need first to identify the rules and the players...assuming you don't need to do that ,or even trying to do it on the basis of poor advice would be the first thing that would lose you money.

This is getting closer and whilst it is the closest to my view, so far, it is not 100% in line, so in that context, the answer is no.

You may call it "A Rule", if you like, but it is a very important thing that will take your money faster than anything else, guaranteed.

Some will argue of course, and that will be au natural, but let us see what happens.

The rules in themselves may not be correct, and it is possible to win money as well as lose money by following the rules of the game, but, there is still one thing, in my view, that will take your money quicker than anything else, if you are not fully aware of it.

 

[CYOF]

Emotionally wear your trade

No - this is not my view.

 

[CYOF]

Being unprepared for it

Again, in line with some of the other posts, so, the answer is No.

 

[dc2000]

risking too much of your capital per trade, and thus blowing your account before you allow it to grow?

My answer would be the same as Trendies for the first part trading large size on a small account

2nd would be trading with Stops

 

[SOCRATES]

It's a fair enough question and though there may be many different answers there's always one that comes first ....in any game ..and trading is game based...you need first to identify the rules and the players...assuming you don't need to do that ,or even trying to do it on the basis of poor advice would be the first thing that would lose you money.

Yes, I agree. Remember in Journey from the Basement how I described the game of Croquet in the Adventures of Alice in Wonderland by Lewis Carroll and how I recommended everyone to read it and study it carefully ? I sometimes wonder how many actually got the drift there, Chump. I sometimes wonder why it is the most meaningful ideas get ignored and the less meaningful get promoted, in mainstream, that is.

 

[CYOF]

Trading without having a proven edge and knowing when the edge is present.

Whilst the "edge", or several "edges", are a necessity for consistent profits in trading, in my view, knowing about all the edges in the world, are useless, without the one real edge.

So, whilst your answer is correct in a sense, it is still wrong, as it is too general, for the question is:

"What is the quickest way to Lose Money in The Trading Game"

And we will now, in light of this post, take the answer as been one thing, not many.

 

[Mr. Charts]

Trading an opinion
Richard

 

[CYOF]

100% in agreement. However, I'll be pedantic. The very fastest way is to define an edge, then trade against that edge. To ensure a quick death, add excessive leverage, adverse risk reward, particularly inappropriate stops, and you've pretty much guaranteed a quick disaster.

Perhaps CYOF could elaborate if the answer he's seeking relates to practical methods, or if he's thinking more from a philosophical basis.

regards
zu

As the majority of this post has been covered in the reply about the "edges", I will state that I am talking about a very practical thing indeed, and, tempted as I am to introduce some words of wisdom, to spread the good word, so as to speak, I will refrain, for the detractors must be kept at bay, and banished if they persist.

They have been given ample warning, a lot more than I got, at times.

 

[zupcon]

I am talking about a very practical thing indeed.

Avoiding particular brokers perhaps ?

regards
zu

 

[CYOF]

CYOF,

that reply by Priceman may be off topic, but he did ask you to say when would you say what is in your mind, and honest I do second that request.

Otherwise people are trying to answer a valid question that has several right answers, and your answer is not necessarily the only right answer, it is only what you think is the right answer.

So in fairness, in order to have an adequate debate I would ask you to answer your own question.

J

But that is not the correct way to do it, jacinto.

I can not say "when", as it will depend on the answers given.

To take away the curiosity from the other readers is not fair, and I am a fair person, so as much as I would like to tell you My View, I will not, until someone comes up with the correct answer to my view, or at least very close.

And yes, you are of course correct, this is My View only, and it in no way confirms that what I say is right for anyone else, but each reader should be able to from their own opinion in relation to the question, based on all the answers given, and that is the whole point, no?

Question:

What is the quickest way to Lose Money in The Trading Game


Regards,

 

[CYOF]

My answer would be the same as Trendies for the first part trading large size on a small account

2nd would be trading with Stops

1. No, not my view.

2. No again, not my view.

 

[FetteredChinos]

ok, how about

"looking at the what, and not the why the markets are moving like they are" ?

and your question is in fact a statement, judging by the lack of question mark at the end of it.

i cant help but feel that this is another semantic riddle in an attempt to feel intellectually superior...

 

[CYOF]

Yes, I agree. Remember in Journey from the Basement how I described the game of Croquet in the Adventures of Alice in Wonderland by Lewis Carroll and how I recommended everyone to read it and study it carefully ? I sometimes wonder how many actually got the drift there, Chump. I sometimes wonder why it is the most meaningful ideas get ignored and the less meaningful get promoted, in mainstream, that is.

Yes Socrates, for the majority, most of the time, the big idea of winning tends to push the small idea of reality into the back of their minds.

This has the effect of making one concentrate on the wrong things.

My question - and answer - may shed some light on this, but then again, this is my view only, and there is nothing more certain that many will argue, but if they argue then they must back up their arguments, for my answer, can, and will, be backed up, and what is more, it is the readers who will back it up themselves, not me.

 

[CYOF]

Trading an opinion
Richard

Again Richard, a very good and relevant answer, for we all know what an opinion can do to an account, but, in my view, there is something a lot more important, that will guarantee to lose your money faster than anything else mentioned so far, leaving aside the generalisation of "edges", which we have covered.

 

[CYOF]

Avoiding particular brokers perhaps ?

regards
zu

No - that is not my view in relation to the question - although it is very important, of course, for did not a major FX broker go to the wall last year and a lot of traders are still trying to get some of their money back - REFCO I think - but please do correct me if I am wrong, for I may well be.

 

[CYOF]

ok, how about

"looking at the what, and not the why the markets are moving like they are" ?

and your question is in fact a statement, judging by the lack of question mark at the end of it.

i cant help but feel that this is another semantic riddle in an attempt to feel intellectually superior...

No -that is not my view.

Go back to post#1, there is a big question mark in front of it, like so.

What is the quickest way to Lose Money in The Trading Game :?:

I will give you the benefit of the doubt, this time, but the next time I will not, and you will lose your first chance.

 

[Crap Buddist]

You now have 2 chances left.

Ok I now,because of what you have just written above, suggest this ,lets see if it helps :idea:

You do not know that you do not know ,as you said "I do not know" and I said "correct". then you said " You now have 2 chances left"


Again.

"In short your going to slaughter a invisible lion on hearing ,but use only your eyes to see with. The Lion knows this ?" :?:

What do I mean by this . :?:

Your previous answer was

I Dont Know. :arrowl:

I said , Correct. :!: :idea:

Youve fiished with me and my question and given the correct answer only you dont know
it :?: :idea:


To know nothing is not a way to live but the way to act :idea: :?: and your a bloody good
actor :cheesy:


Ok carry on my question and your own answer should get clearer now .... thank you.