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@lancelottrader - I've been there too a couple times (almost exactly the same) and it sucks. The funny thing is I'm never far from it happening it again so constant vigilance is always required. This time around I got some serious training and also trading psychological help. Although that certainly doesn't make me immune it is helping.
Kudos to Matt @ Optimus for handling it like a professional (in an industry that lacks them).
Thanks..I appreciate it. I don't want to get this thread off track so I will say one last thing about this.
After talking to Matt, I have regrouped . I realize that my loss, although bad (about 10% of my account), was not catastrophic . I shouldn't have traded that day due to some stressful events going on in my life...and as Matt stated in his e-mail to me.."I failed to define my daily risk parameters. " I have decided not to give up. I will just take steps to insure this never happens again. Thanks again to everyone who has been supportive through this..especially Matt, who went above and beyond what I would expect from a Broker.
Thank you for all the kind words from you guys, and if there is Karma, you will received it in your personal life and business.
As far as the trading.....
Put the the following sticker on your trading monitor: "The Market Does Not Reward Randomness"
If you try to catch a low, a high, recover from losses, change your lots JUST based on hunches or just try to recover while going through an emotional frenzy, that is randomness. Emotion based randomness can take over regardless your experience, method or years trading. Every trade must have a reason based on your method.
Matt
Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. You may lose more than your initial investment. All posts are opinions and do not claim to be facts. Please conduct your own due diligence. Use only Risk capital when trading Futures.
1 800 771 6748 local 561 367 8686 email [email protected]
Apparently something like this is a known form of behavior amongst poker players.
They lose their normal state of mind and do things they would never normally do - for a time which may be short, may be long.
Happened to read it today.
Sezor
Yes, it only happens to gamblers. As a trader I am sure you have always been in control.
Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. You may lose more than your initial investment. All posts are opinions and do not claim to be facts. Please conduct your own due diligence. Use only Risk capital when trading Futures.
1 800 771 6748 local 561 367 8686 email [email protected]
If Matt has the capability, have an auto daily draw down circuit break installed on your account to prevent anything like this happening again. Not sure if he does or not but some do...set it at 1-2% of your account and then trade away knowing you can never have an epic failure again....and if he has the ability, have him set a max contract size as well....something within your limits but also allows you to put on reasonable size if you see a great opportunity set up with low risk....
Just an idea
Simplicity is the ultimate sophistication, Leonardo da Vinci
Most people chose unhappiness over uncertainty, Tim Ferris
All you have to do is ask for increased margins to limit the # of contracts.
But there isn't a platform that I offer that would disable itself once a certain loss has been reached.
Sadly, my competition, has set the precedence for lower margins which are ridiculous, lower account size,etc
Beginners see "$300 Margin" and think its an "advantage" and its not....but by now most of you know it.
Trade Slowly, carefully and survive another day to trade tomorrow.
Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. You may lose more than your initial investment. All posts are opinions and do not claim to be facts. Please conduct your own due diligence. Use only Risk capital when trading Futures.
1 800 771 6748 local 561 367 8686 email [email protected]
Of course, at least in my opinion, leverage shall not be considered for position sizing. Position sizing shall only depend on the size of the stop-loss (for instance: x ticks) and the accepted risk per trade (for instance: 0.y% of the capital). Or similar.
But I see one advantage with low margins: it decreases the part of the trading capital to be physically moved to the broker's (the rest of the trading capital can remain on a personal bank account at the bank). Broker's bankruptcy might happen. Even if clients' accounts are segregated, etc., it is better to limit as far as possible this kind of "counterparty risk". Simply by moving to the broker only the capital used for trading as per the margin requirements.
But this is just a positive side-effect of leverage (for me). I would never choose a broker because they propose 1:100 instead of 1:40. And I am reluctant to explore the Web site of brokers which advertise mainly on the basis of high leverage. For me, it is simply the contrary of professional trading.
I take the opportunity of this message to thank you for your availability and kindness on futures.io (formerly BMT)!
I appreciate your words and I must reciprocate and say that the futures.io (formerly BMT) consist of courteous individuals as yousrself that it is a pleasure to communicate with.
Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. You may lose more than your initial investment. All posts are opinions and do not claim to be facts. Please conduct your own due diligence. Use only Risk capital when trading Futures.
1 800 771 6748 local 561 367 8686 email [email protected]
