The way NOT to trade

adrianallen99

Established member
630 4
Firstly, this has Nothing to do with the book the way to trade. It is mearly an example of what you shouldnt do.

Don't try this at home, it was just a bit of fun.

I credited money to a new account today and at 2pm made a trade.

By 2:50pm I closed the trade for a 40% profit (30 pts) on my total capital.
I immediately opened a new trade, but to my horror within 10 mins I was down nearly 70 points. 65% of my capital and over 50% of my original capital.

This is a true example of bad money management.

With only half my original capital remaining I risked the lot in a desperate attempt, In 1 and a half hours I made back nearly 200%.

I closed the day 33% up on my starting capital with a maximum draw down of 65% :) Ive summarized the account value in points.

2:00 75 points
2:50 105 points
3:00 36 points
4:30 100.5 points

After the initial win. riding high on my success I looked for another big gain and lost out badly, leaving myself a massive amount to make just to get back my capital. All that in less than 3 hours.

I was very lucky not to get completely wiped out, and even luckier to end the day in profit :) and of course I have probably lost a few years of my life due to my heart racing as I watched my money dissappear :)
 

bracke

Experienced member
1,286 12
adrianallen99

I presume that you are not a novice to trading and that you know many of the pitfalls associated with speculating.

Why did you do what you did? You say that it was a bit of fun but you knew that it flew in the face of what you know.

Are you saying that it was pure gambling and nothing to do with speculating or was there some other motive

Regards

bracke
 

wellshot

Active member
110 0
thank f**k you made it

to fight another day [sorry...trade another day!]
no better experience, in my opinion!
the clever ones are the ones who learn from their experiences


what were you trading??
 
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peedee

1
341 0
It all seems ok AA, if your on valium.
 

adrianallen99

Established member
630 4
bracke: Im not a novice, but then I don't know what im doing either :) I would say it was gambling :)

I was spreadbetting.
 

donaldduke

Experienced member
1,665 257
adrianallen99,

Ed Seykota and Van Tharp call risking between 2-3% on a trade
'Gun Slinging', however you are engaging in the equivalent of
Global Thermonuclear War with your account..

As you say, defintely not the way to trade..
 

peedee

1
341 0
AA, no need to be so humble, good on you if you made it, but it was a bit erratic. Anyway, at least you come out on top( this time ).
 

Selbats

Junior member
11 0
adrianallen99

I would be interested to know if you had a stop in place, and if not did you leave your screen unattended or did you watch your position move away from you?
 

bonsai

Veteren member
4,106 11
AA
only the future will tell what emotional baggage you have now collected and will have to deal with next time you trade.

Bad move.

You may have thought you won today but tomorrow it will still be with you.

Anybody know an exorcist ?
 

BBB

Experienced member
1,071 3
DD - Van Tharp IS NOT a trader. He is a 'theoritian'. He can stuff 'Trade your way to Financial Freedom' where the sun doesn't shine - sideways!

Personally, I'd say risking 1% is a waste of time. Like 1 contract futures traders. If risking 2-3% will cause intolerable drawdown, then the 'trader' either nas nerves of snot or a very poor system, or both.

You can take all these books, throw them out. Look at your past trading record and do your homework. What would have been a more profitable figure to risk? Have confidence in yourself and your TRUTHFUL findings. Dont take as gospel something that someone has never traded says.
 

donaldduke

Experienced member
1,665 257
BBB,

Dont take as gospel something that someone has never traded says.

You are talking rubbish.

Van Tharp is a trader, he started trading 30 odd years ago and
like almost every other starting trader he lost money,
thats what got him studying top traders, he still
trades today: his companies retirement fund.. Which i would
imagine is a mutli million dollar account.

And if you read my post, i also said it was Ed Seykota
opinion as well, now do you question his experience too?

This game isn't about nerves or how big your balls are, its a
serious business, and most serious businesses would prefer steady consistent growth rather than erratic and volatile results.
 
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