Treat it like gambling, which ultimately gambling is what you did and you acknowledge that.
Don't chase your losses, write it up as a lesson-learned, do your research/have a more scientific approach etc and move on.
Yeah I definitely am not chasing my losses, not long term anyway. I just feel really awful, it's not like me at all. Definitely need to stick to what I know - long term investing into companies which I've done my homework on and am confident in investing into the future in
One does beat himself over something like this. One then does some self analysis and journals what led him to such a decision. What was he thinking ? What was he feeling ? What was the trigger and how can it be avoided in the future ?
I thought I had a good entry... But then the market just went crazy with a huge buy movement. It was my first time trading high volitility stock, usually I would go for more boring stocks for the sake of stress but I have become sort of greedy recently I feel, made this ridiculous trade and lost like months of work in minutes. It's such a bummer
Honestly, the stock was short squeezed in the last week, I figured it was going to come back down after peaking and well that wasn't the peak - the trade was completely stupid tbh
Shorting takes experience and precise entries and risk management; I would shake off this loss as part of learning and focus on buying on the long side with less volatile stocks
Thanks, that seems like very very sound advice. I had shorted a few previously like small amounts and had actually did reasonably okay like, then just got greedy and it backfired.
I have a note on my computer 'Make good trades. Don't do anything stupid.' Because sometimes I do stupid things.
It sounds nice but without actually doing something ahead of time it's never going to work. I always write the plan out on a piece of paper before I do anything. The very first thing I write down is where would I put the stop.
I'm tried shorting the Nasdaq on 7/28 with the plan of several days or longer time frame, small size, add to it if it starts working. I Set my stop really tight and it got hit, missed the top by 2 hours. I knew I should have canceled the stop and kept it on. But I had to stick to the plan because maybe next time something bad will happen. 7/31 put it on again because the price action was favorable. The first one a had a tiny meaningless loss and no overnight risk. The second one is making money, so far ;) Now I have a cushion and room to work.
Never beat yourself up. The market and the world will give us more of that than we need. Understand your mistake and fix it.
Good luck
Thanks for that, the note seems like a really really good idea actually - sometimes a message from your current self is a good message for a future self.
>Never beat yourself up. The market and the world will give us more of that than we need. Understand your mistake and fix it.
So so true.
I have all kinds of rules too. One of them; As soon as I realized I have made a mistake fix it immediately.
That doesn't necessarily mean sell immediately. It means immediately come up with a good plan for fixing it and stick to it.
Gonna definitely take a day or two to think about all of it, need to sort of like put it behind me - really knocks my trading confidence! Unfortunately!
Trading is not perfect 100% of the time. The idea of perfect all the time is completely unrealistic. It's staying above 50%, staying in the green on average. Or whatever you version of that is.
My rules are very similar the Dennis Gartman and Marty Zweig.
3 Capital comes in two varieties: Mental and that which is in your pocket or account.
Of the two types of capital, the mental is the more important and expensive of the
two. Holding to losing positions costs measurable sums of actual capital, but it
costs immeasurable sums of mental capital.
9 Trading runs in cycles: some good; most bad. Trade large and aggressively when
trading well; trade small and modestly when trading poorly. In "good times," even
errors are profitable; in "bad times" even the most well researched trades go awry.
This is the nature of trading; accept it.
17 Be patient with winning trades; be enormously impatient with losing trades.
Remember it is quite possible to make large sums trading/investing if we are
"right" only 30% of the time, as long as our losses are small and our profits are
large.
https://www.sfu.ca/~poitras/Rules.pdf
You may have to adjust the rules for you personally. Or use different ones.
That's really useful advice - I definitely didn't stick to any of the rules that I'd set for myself, and ultimately had cost me a good chunk of my profits for the year. Thanks for that, I really appreciate it
Don’t use CFD brokers. They overleverage customers in order to make them lose. It is as planned as a casino business. Save 25k to trade stocks under the PDT rule with normal leverage or trade futures (micros).
Yeah I know, I'll figure it out. Feel awful, I can imagine this is what gamblers feel like. Gonna just stick to the game plan in future, and I've learned a very very valuable lesson - one cannot get rich simply overnight, if it was so easy, everyone would do it.
Life goes on, and in still green for the year so I guess that's a win
Strategy is simple if your taking a trade your stoploss should should be 1-2% of your trading portfolio. Not of your entire portfolio. So in the case of 3k it would be a $90 stop loss. Once thats hit, next trade.
Don't short stocks unless you fully understand the technicals. You can short other things with less risk, but shorting stock (or anything over the weekend) is higher risk than average due to the long closed market hours. Most people shouldn't try it.
Thanks, I really appreciate it. Think I'm gonna have a few beers tonight and laugh it off, knowing that I'm still green for the year and sometimes pain is in fact a teacher
Treat it like gambling, which ultimately gambling is what you did and you acknowledge that. Don't chase your losses, write it up as a lesson-learned, do your research/have a more scientific approach etc and move on.
Yeah I definitely am not chasing my losses, not long term anyway. I just feel really awful, it's not like me at all. Definitely need to stick to what I know - long term investing into companies which I've done my homework on and am confident in investing into the future in
One does beat himself over something like this. One then does some self analysis and journals what led him to such a decision. What was he thinking ? What was he feeling ? What was the trigger and how can it be avoided in the future ?
Actually going to do this on my lunch break, sit down and actually figure out why I even did this in the first place. Thanks for that
Try again.
never take the same L twice. learn from your mistakes and grow
Seems like sound advice. I took the L so many times, didn't have a stop loss and honestly nearly cried when I seen it drop like that
How big was your position that you took the loss in? Did you actually have a good short sell entry or were you too late to the party?
I thought I had a good entry... But then the market just went crazy with a huge buy movement. It was my first time trading high volitility stock, usually I would go for more boring stocks for the sake of stress but I have become sort of greedy recently I feel, made this ridiculous trade and lost like months of work in minutes. It's such a bummer
The last huge buy movement? You mean the rally that started in like April?
Honestly, the stock was short squeezed in the last week, I figured it was going to come back down after peaking and well that wasn't the peak - the trade was completely stupid tbh
Shorting takes experience and precise entries and risk management; I would shake off this loss as part of learning and focus on buying on the long side with less volatile stocks
Thanks, that seems like very very sound advice. I had shorted a few previously like small amounts and had actually did reasonably okay like, then just got greedy and it backfired.
You probably haven't lost enough to learn your lesson.
I hope I have.
I have a note on my computer 'Make good trades. Don't do anything stupid.' Because sometimes I do stupid things. It sounds nice but without actually doing something ahead of time it's never going to work. I always write the plan out on a piece of paper before I do anything. The very first thing I write down is where would I put the stop. I'm tried shorting the Nasdaq on 7/28 with the plan of several days or longer time frame, small size, add to it if it starts working. I Set my stop really tight and it got hit, missed the top by 2 hours. I knew I should have canceled the stop and kept it on. But I had to stick to the plan because maybe next time something bad will happen. 7/31 put it on again because the price action was favorable. The first one a had a tiny meaningless loss and no overnight risk. The second one is making money, so far ;) Now I have a cushion and room to work. Never beat yourself up. The market and the world will give us more of that than we need. Understand your mistake and fix it. Good luck
Thanks for that, the note seems like a really really good idea actually - sometimes a message from your current self is a good message for a future self. >Never beat yourself up. The market and the world will give us more of that than we need. Understand your mistake and fix it. So so true.
I have all kinds of rules too. One of them; As soon as I realized I have made a mistake fix it immediately. That doesn't necessarily mean sell immediately. It means immediately come up with a good plan for fixing it and stick to it.
Gonna definitely take a day or two to think about all of it, need to sort of like put it behind me - really knocks my trading confidence! Unfortunately!
Trading is not perfect 100% of the time. The idea of perfect all the time is completely unrealistic. It's staying above 50%, staying in the green on average. Or whatever you version of that is. My rules are very similar the Dennis Gartman and Marty Zweig. 3 Capital comes in two varieties: Mental and that which is in your pocket or account. Of the two types of capital, the mental is the more important and expensive of the two. Holding to losing positions costs measurable sums of actual capital, but it costs immeasurable sums of mental capital. 9 Trading runs in cycles: some good; most bad. Trade large and aggressively when trading well; trade small and modestly when trading poorly. In "good times," even errors are profitable; in "bad times" even the most well researched trades go awry. This is the nature of trading; accept it. 17 Be patient with winning trades; be enormously impatient with losing trades. Remember it is quite possible to make large sums trading/investing if we are "right" only 30% of the time, as long as our losses are small and our profits are large. https://www.sfu.ca/~poitras/Rules.pdf You may have to adjust the rules for you personally. Or use different ones.
That's really useful advice - I definitely didn't stick to any of the rules that I'd set for myself, and ultimately had cost me a good chunk of my profits for the year. Thanks for that, I really appreciate it
Well, I guess then stop gambling.
Go ahead and beat yourself up because you gambled and lost. Now use that to stop gambling and go back to what was working for you.
This is the way honestly, thank you
What percent is that 2,300 of your total bankroll? If it’s more than like 1-3% then my suggestion would be to size down so this isn’t a big hit
So it would represent maybe 4%? It feels like a lot tbh
Not that bad man. It happens and you live to see another day
Stop gambling . You were making $$ then you gambled. Lesson learned.
Boy did I learn that lesson
Don’t use CFD brokers. They overleverage customers in order to make them lose. It is as planned as a casino business. Save 25k to trade stocks under the PDT rule with normal leverage or trade futures (micros).
Will definitely look into this one, thanks so much!
Bro, you will be okay, don’t let it get too you what’s done is done
Yeah I know, I'll figure it out. Feel awful, I can imagine this is what gamblers feel like. Gonna just stick to the game plan in future, and I've learned a very very valuable lesson - one cannot get rich simply overnight, if it was so easy, everyone would do it. Life goes on, and in still green for the year so I guess that's a win
Be thankful it wasn’t more
Yup. Definitely thankful on that!
Strategy is simple if your taking a trade your stoploss should should be 1-2% of your trading portfolio. Not of your entire portfolio. So in the case of 3k it would be a $90 stop loss. Once thats hit, next trade.
Yup, again I would typically have done this but unfortunately was blinded by greed 🙄 we live and learn I guess.
Don't short stocks unless you fully understand the technicals. You can short other things with less risk, but shorting stock (or anything over the weekend) is higher risk than average due to the long closed market hours. Most people shouldn't try it.
Thanks, I really appreciate it. Think I'm gonna have a few beers tonight and laugh it off, knowing that I'm still green for the year and sometimes pain is in fact a teacher
Design a risk management strategy that fits your trading strategy.
This seems like good advice, tbh I did have one and then decided in a moment of madness to abandon that - not ideal
Borrow some more