Beginners cock ups

[bottomdollar]

Hi All,
I was just thinking about all the boo boos that one's made in trading... all the ones which we've all done and learnt from.. it would be both amusing and educational (especially for newbies).

To start it off, just a little as to what happened with me today...

I was short of the DOW this evening at 9340 and there was a bit of volatility which made a tad nervy (my biggest problem trading, I've been told, is fear).. but then it fell sharply and I was happy again. Just before 8pm my sister called me and she wanted a lift.. I tried to ignore her but she would have none of it so I was thinking.. should I put on a stop loss or buy to cover whilst I'm winning.. I hate not looking at the chart when I'm trading. Anyway, decided upon putting on a tight stop loss but when I got to the front door I thought.. ****, best take profits. So I ran to my screen and bought to cover! However, my stop loss had already been trigger and I ended up being long on the DOW!!!! It rapidly declined and there was a moments panic as I didn't know what the hell was going on.. in the end, I sold to cover and ended up on the day 3 points up!!! There was a potential 100 points for the taking.... arrrrgh!!

My thoughts are:

1. At least I was up for the day!
2. I should have asked my sister to get a cab, it would have been more cost effective
3. Fear is BAD, leads to more cock ups
4. There's no room for error in trading

Cheers :cheesy:

ps. I'm sure a lot of us have pressed the buy rather than sell before and vice versa.. I've done that a few times!! DOH!

 

[Trader333]

Invoice your sister for the cost of this trade and that will be the most expensive taxi she has ever taken I guess.


Cheers


Paul

 

[spreadbet]

Thats what I call being caught short.

BTW

Isn,t it time the designers of office furniture designed a commode
for trades

Cheers

spreadbet

 

[FTSE Beater]

I've got 2 to add the list and something I've been guilty of in the past


Running a 50%!!!! Yes 50% stop!!!

Entering a long instead of a short and then doing the worse thing possible PANICING. General tip, if this happens to you remain calm - easier said than done

I'm sure there are others I've done, but I'll add those later.

 

[BlueChip Trader]

Three months or so ago, GSK and AZN were steaming above my short entry points on all 4 indicators I use.

Rubbing my hands together, I shorted both with 1k. Few minutes before the close the indicators were going crazy so I shorted some more.

Next morning I closed all the positions for over £1800 profit. The next day my invoiced showed a debit for £2400. :?:

Steaming , a bit like my indicators, I phoned my brokers. They told me that I came in short on EX D date!!

The moral of this cock up is:

PLEASE, PLEASE, DO YOUR HOMEWORK!! :idea:

Happy Trading.

 

[Skimbleshanks]

Umpteen years ago (in the days before online trading) and when I was reasonably new to trading, I bought a stock through my broker. Two days later I was in his office when he said "You know that stock you bought, it's gone up four percent this morning. Do you want to sell?" As I sat sipping my coffee I said "No, I'll keep it for a little longer as I think it will go up more." He gave me a rather odd look, but I thought no more of it.

It was only when I got home did I start to think that it was all a little odd, so I phoned him to ask why he had thought it odd not to sell. He replied that usually when a stock had gone up FORTY percent overnight that clients usually banked their profits. But by that time the LSE had closed, so there was nothing I could do.

Come next morning, the stock had gone back down to where it was, and my mistake in hearing four percent instead of forty percent cost me £2,400 in profit.

I can laugh about it now, and that broker spent the following year talking loudly to me on the phone as if I was deaf! LOL