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TOPIC: My Short but Not So Sweet Trading Experience

My Short but Not So Sweet Trading Experience 23 May 2017 08:45 #1

  • penelopeisla1
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i have been trading for almost 5 years now. Well,if you simply want to educate yourself about trading and investing by reading others's experiences, it’s a really good thing. But, if you want to start trading right after learning the basic concepts of trading - it is very probable that you will fail. You need to learn a lot and have a ‘financial mindset’ in order to succeed. I suggest you to read these ebooks about trading.
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My Short but Not So Sweet Trading Experience 11 May 2017 11:49 #2

  • Cluner24
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You have shared very good information on trading experiences. I am in search of excellent wealth management group Las Vegas for financial help. Hope to consult with best services and get unbiased advice.
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My Short but Not So Sweet Trading Experience 09 May 2013 18:22 #3

  • Shotry
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It's not easy Amo and for me (at least sometimes) it's a constant battle with myself. You're right about money management being a key aspect of getting it right. You have to be so careful of others views as well (particularly on the BB's). Never forget that 90% of those on the BB's are playing an expensive game and losing. You must know plenty of people in the the real world who come over as 100% confident in what they're doing. They will never ever admit they are wrong. These are the people to avoid. No-one gets it right all the time. Be very wary of those who are not prepared to explain why they do something (I know lots like this). Many have a God Complex and just tell you about the next sure thing with no reasoning (sometimes it will be right and people will remember this), for others you might find it's not easy to understand their reasoning (just stay out), others still you simply disagree with their reasoning (again avoid the trade as if you've no confidence in a trade, it's likely to get stressful and you're likely to change your views while it develops). Occasionally a trade makes sense to you, consider this trade carefully and make sure you're critical and protect your trades. It'll increase your chances of making money. Also, there might be particular trades that fit best with your personality (timeframes perhaps e.g. maybe a few days is better for you or maybe it's a few weeks or maybe it's a few hours). Go through your records and figure out which ones were working best and figure out why. Try to focus on these for real money trades and paper trade or backtest your new ideas or the ideas of others you find interesting. Also did you try 'Come into my trading Room (Elder). Interesting book, that's well worth a read.
All it takes for the triumph of evil, is the silence of 'good men'
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My Short but Not So Sweet Trading Experience 09 May 2013 15:14 #4

  • Amo
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Thanks for your comments and advice Jackozy. Very much appreciated.

I considered the demo account approach but I thought the emotional aspect would be removed so wouldn't be as beneficial. But I think I will give it a go. I need to get it out of my head that the money lost on the DOW has gone now and there is no point ever trying to chase it back. Once I've done that I think I'll be ready to start again.

Amo
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My Short but Not So Sweet Trading Experience 09 May 2013 15:07 #5

  • Jackozy
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Amo,

Thanks for sharing that mate. Took some guts to put that out there.

Don't worry, though. Most of us have been there at one time or another. One of the biggest problems after an experience like that is loss of confidence. This will happen regularly throughout your trading experience.

Might I suggest that you open or use a demo account and go back to just trading stocks off daily charts? I'm sure it'll help you to re-establish your trading strategies, money management rules and your confidence.

One other thing I learnt: you learn most from your failures and losses. Keep the memory of your experience - it's a very valuable lesson and one you paid a handsome sum for so it's be a shame to waste it. My biggest loss/mistake has now become my favourite trading memory. It helps keep me focused on what NOT to do and is a lesson that I now know would have happened to me sooner or later anyway.

Better to experience this early in your trading career than later IMHO.

Keep going buddy. From what I've seen from your posts, I'm pretty sure you'll get there if you stick at it.

Thanks again for sharing.
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My Short but Not So Sweet Trading Experience 09 May 2013 14:37 #6

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It's 2013 and the start of my new trading adventure. I've read many books, forums, websites and have a decent amount of capital ready to take the plunge. Most importantly I have my money management rules ready to be used as my trading bible.

First few weeks of January things are going well. Learning new techniques, trading at support and resistance, following some trading systems from charts view strictly and most importantly limiting losers and letting winners run. (That's why we all do it at end of the day) All trades logged with comments of why I placed the trade, ratings profit/loss, targets etc. At the same time finding chartsview a brilliant source for learning. It's all going swimmingly and couldn't be happier with the way it's begin.

Unfortunately that's where I started spending too much time on III and came across a poster that appeared to trade for a living. He would often post predictions with an amazing amount of accuracy. He told me he would like to share his system with me so I thought no harm in listening. This is where is all went downhill. I had email after email from him and to be fair to the guy he was just trying to help, but his system was bonkers. It involved both shorting and going long on the Dow while using indicators to know when to take profit and then wait for a reversal. Unwittingly I tried it and at first it was going ok. I was banking profits and waiting for reversals.

The Dow was 13300 at this point. From here on it just continue to rise and rise and I lost all control. Emotions took over, money management out the window and I think even my hair started failing out. While trying to keep a day job and follow ridiculous moves on one volatile indice was driving me nuts. I had no system and all my moves were just spur of the moment madness. No planning, no technical's, I was just plain and simply gambling on emotion and any speculative article I could find about the DOW reversing. I crashed and burned and my trading adventure came to an end by April.

Now I know I'm not the first to be wiped out and I know I won't be the last. But I'm posting this to a warning to new traders about how crucial it is to stick to money management rules. If you don't it is almost guaranteed you will suffer the same fate as me.

These days I just watch and learn while trying to slowly move out of long term speculative investments I've made in the past to places that are safer for my money. Maybe one day I can try again but I know that day can never come until I'm 100% in control of my emotions and money management.

I hope this short story may make some people consider if they are ready before also starting their adventure and in particular trading on the DOW. ;)

Good Luck all.
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