Y that was when a French brokerage liquidated their bad trade overnight. His recording is also very much inline with the guy who got shot but he had to posted a snap of his wound first before getting to the hospital.
Agree here Big Mike, it really has nothing to do with anything. The combine is someone else's parameters and not your own. I have have been very profitable in the past operating in a completely different set of parameters than the combines. While I found the combine almost impossible to pass due to my learned trading process. The only thing I can say, is that passing a combine shows that you as a trader have the ability to be versatile. It is only just one more tool in the tool box, that is all.
There is a crowd behavior that is typical where early adopters come into the market in the early stages of the move. As the move extends, you have the late majority that is coming in and tries to take advantage of a move that is over or about to be over. This is the cumulative nature of the herd instinct. Odd lotters feed the smart money.
Good traders, in my personal opinion, not only understand their method, but also the ability to read how inexperienced traders will behave under those circumstances.
inexperienced traders love using terminology and always throw around the "positive expectancy", "let your profits run", etc. while the real context that it is done within and the big picture is lost. All those terms are fine, but they have a lot more depth in the context of reading the market right. Try and get your advice from people who actually trade, it adds a new color to trading.
There is a substantial risk of loss in futures trading.
PM with any questions about optimusfutures (800) 771-6748 (561) 367 8686. THERE IS A SUBSTANTIAL RISK OF LOSS IN FUTURES TRADING.
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It's common for people to think they blew up their account because they had yet to learn how to trade. However, it's generally because they had yet to learn how to position size.
Once you have a solid grasp of money management, then even with a win rate of zero you won't be able to blow up your account - as your account equity diminishes then so will your position size, until your position size becomes zero units. At that point, you're no longer able to trade, but you haven't lost all the money in your account.
Many hedge funds are obliged to cease trading once they incur a drawdown of 50% or more - the individuals and institutions investing in them shouldn't lose more than half of their funds that way (barring some kind of liquidity crisis preventing valuation and exit of positions).
Although there are sophisticated mathematical approaches to anti-martingale position sizing, the core rule is very simple: bet less when you're losing. As your account equity falls, de-leverage.
Hope someone finds that a useful distinction to keep in mind!
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I lost control and blew up my trading account 3 times.
I started trading SGX derivatives full time from mid 2004 with S$200K capital after being retrenched at age 42 from my Engineering job with Chevron in Singapore. 1 USD = 1.37 S$ (SGD).
I made money 7 out of the last 10 years. My total net profits from 2005 to 2014 is about S$1,288,000.
On 15 Feb 2007. I lost S$191K trading SGX MSCI Singapore Index futures. After trading for 2 years, I had zero profits and about S$70K of savings left to support a family with 2 young kids. Lowest point in my life.
On 30 Apr 2009, I lost S$224K trading SGX MSCI Taiwan Index futures and another S$116K the next trading day on 04 May 2009. Total S$340K in two consecutive trading days. I surrendered my life insurance policy the next week, and an investment condominium a month later, to raise additional trading capital after the loss.
On 16 Nov 2012 I lost S$570K trading SGX Nikkei 225 Index futures. Although my trading account was not completely wiped out, unlike the previous two major losses, I forced myself to take a temporary break from trading to reassess my situation. As a result of this major loss, my net trading income over the last 6 years, from 2009 to 2014 is next to nothing.
There were two other "near miss" trading days where my trading account had floating losses that exceeded my trading capital but the market recovered and I had profits at the end of the trading session.
On Tuesday 15 Mar 2011, after Japanese Prime Minister Naoto Kan said a “substantial amount” of radiation was leaking from a nuclear power plant affected by the Mar 11 massive earthquake and tsunami, the floating losses on my Nikkei 225 long positions touched S$2.5 million, roughly twice more than what I had in my trading account. At the end of the trading session I made S$120K. It was the most frightening day in my life, more scary than the time I got robbed at gun point in Phnom Penh a few years earlier.
I continue to trade daily, with a S$100K account presently, focusing mainly on Nikkei 225 Index futures. My daily profit seldom exceed S$500 per trading day, nowadays.
I am 100% certain I can lose every cent in my trading account again.
Last edited by JacLau; March 26th, 2015 at 11:32 AM.
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The Live fills can actually be better than SIM. This really varies depending on the simulator fill engine you are using based on the platform and also the platform simulator settings. But, you can set it up so the fills are very realistic. I have actually had slightly better fills live than on SIM with Ninjatrader.
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Do you personally know any successful traders(years)who have never blown an account? I've been reading/studying for half a year now, and it seems that blowing up an account is an active choice on the part of the trader. You have to willingly ram your face into a streak of losses to actually end up at 0 or below. I really don't understand that. Or is there just several trades where the trader decides to risk it all?