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I finally blew up an account


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I finally blew up an account

  #21 (permalink)
 simon b 
dallas texas usa
 
Experience: Advanced
Platform: tradestation
Trading: es
Posts: 1 since Oct 2016
Thanks Given: 0
Thanks Received: 1

I am sorry you blew up , First. It happens to so many of us, and the pain and humiliation is awful. I have a few suggestions. I hope they help . 1. Forgive yourself. Its the only way to move forward, 2. Tell your wife, if you don’t the feeling of shame will only grape stronger. 3. You did not respect the power of the market. Find out why. No method is fool proof, but your belief system told you other wise. I e. No one jumps off the top of a building because we know it will kill us. Almost everyone respects the power of a jump off a building too kill you and do anything they can to avoid it. Next, your trading system failed and your emotional process failed. What are you going to change that is actionable so this does not happen again. Is you don’t answer those questions, you run the risk of doing it all over again. (I have, sucked worse the second time). Lately, you u be using too much leverage. Very common on small accounts where traders are trying to making as living off a small stack. Be honest with your self. You can come back. Make the changes necessary and improve. Literally the only thing to do. I have been doing this for 25 years. Getting back up is the part that counts. I all the best. S.

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  #22 (permalink)
 Kraechek 
Toronto Canada
 
Experience: Advanced
Platform: Ninjatrader
Trading: ES
Posts: 5 since Jul 2017
Thanks Given: 1
Thanks Received: 5

Read "Trading in the Zone" by Mark Douglas. Very helpful for understanding the psychology and impulses that lead to blown accounts and how to avoid them.

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  #23 (permalink)
 TheProblemSolver 
Leedey OK, USA
 
Experience: Advanced
Platform: TradeStation, Tradingview
Trading: Emini ES, Micro ES, CL, NG, SPX, CD, BP, TY, FV, HG
Posts: 1 since May 2020
Thanks Given: 0
Thanks Received: 1


You are in good company. I know "Professional Traders that have done the exact same thing. These are some helps/suggestions.
1. First and foremost Have your trading rules P O S T E D next to your trading computer. Read it everyday prior to trading.
2. Trade with a partner. Agree with the partner to "Review" your trade prior to placing it. If it does not conform to your Trading Rules. DO NOT TAKE THE TRADE. If your partner does not agree with the trade, DO NOT TAKE THE TRADE.
3. ALWAYS USE STOPS. Only risk 1% of your account or less.
4. Trade Sim until you are profitable again.
5. Know when you are getting out before getting in. Know your target and stops and calculate the risk prior to executing the trade.
6. Remember and execute the first 5 rules.

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  #24 (permalink)
 SLMacKellar 
Rio Vista + CA/USA
 
Experience: Beginner
Platform: TradeStation, NinjaTrader
Trading: CL, NQ
Posts: 5 since May 2016
Thanks Given: 1
Thanks Received: 13

I have done (on a smaller scale) what you have done many times. It is my biggest trading weakness. I went from 3k to 40k in a few weeks, then gave it back within hours.

I am working on it. But what I do know is that it is that first loss, which is so unexpected since I have been doing so well, that triggers everything. I fight the market and the crash is inevitable.

So now I know the trigger. I am watching for it. I have been able to pull back a couple of times once I have had a loss and go on to trade well.

For me I notice a few things. Never fight the market. Use a higher time frame. Set profit goals more realistically. Use larger stops. And never, ever use the reverse button.

Hope this helps. But it is an ongoing struggle.

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  #25 (permalink)
 maartenb 
Boston MA
 
Experience: Intermediate
Platform: TWS, Python, AMI, MC
Broker: IB, TS
Trading: Eq, FX
Posts: 5 since Apr 2013
Thanks Given: 13
Thanks Received: 3

Sorry to hear about situation. Are you familliar with Van Tharps work? If not I highly recommend you check him out.

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  #26 (permalink)
 Bgmcm 
New Orleans LA
 
Experience: Intermediate
Platform: ninjatrader
Trading: eminis
Posts: 6 since Dec 2013
Thanks Given: 1
Thanks Received: 7

Hi blew sorry to hear that bit of news. So tell me did you keep a journal of your trades?
Wins? Losses?

Do you think you over traded?

What about your stops, did you use any stop loss levels?

These are the type of questions i would be going over in my mind.
Also did you pay yourself at the end of the trading week taking some wins out of your account?

I would start with these questions and i think you will see some things come to the surface. This way the losses can be corrected.
Hope this helps you.
Take care.

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  #27 (permalink)
walter739
Caracas
 
Posts: 23 since Sep 2020
Thanks Given: 114
Thanks Received: 12

I share your pain, I am going through the same, with less amounts but just as painful, I still do not recover psychologically, I operate very little, I do not perform my risk management well. That stage of mine of losses that I think that all traders at some point happens to them is "the guy of back" whatever you do, it seems that someone in the back sees you and makes the operation go in the opposite direction, and it lasts a long time , something that seemed incredible to me and I also increased positions because I thought it could not happen that I lost so many times in a row, but I learned by the hard way that it does. I don't think that's your case, but a worse ending awaits those who make martingale. Good luck in your recovery, if with 7k you did 70k, you are very good, so clean dust yourself off and go ahead managing the risk.

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  #28 (permalink)
three86
Vista, California USA
 
Posts: 51 since Aug 2020
Thanks Given: 3
Thanks Received: 74

If you are upset about losing money or happy about making X thousand percent both is emotional trading. Your trading should not change based on either. If you start trading differently because of a win or because of a loss instead of reacting to the market (or whatever your system is) that is a red flag problem.

That said one way to deal with it is to trade with very high leverage and a very small account balance. For example $500 mini or $50 micro per contract daytrade margin you can trade with a few thousand like it is 10x. Yeah it is double edge and you might (will?) blow up occasionally but at least they will take you out then you have to cool down while waiting to transfer more in. Even with just a couple micro you can make $500+/day (or lose it with bad trading). Eventually you will figure it out. Mentally that is easier and makes blowing up not as emotionally devastating. You could limit yourself to $1k per week max deposit so the most you could lose is $52k/year (or scale that to whatever fits). The most you could make is unlimited especially if you are doing 1000%. When you get above a threshold you also have to transfer out of the account to keep the potential blowup small.

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  #29 (permalink)
fxSOL
Belgrade Serbia
 
Posts: 60 since Mar 2020
Thanks Given: 37
Thanks Received: 25


blew View Post
So I just need to get this off my chest. I just gave away all my gains on the year. I went from 7k -> 70k -> 10k. I blew most of it revenge trading and taking too big of position sizes. I got so comfortable scaling up as I was profiting consistently, and I threw it all away in like 10-15 trades. All the work I put in.. day and night studying all the styles of trading, figuring out what worked for me and what didn’t, and I blew it all within a few days by emotionally revenge trading and scaling up higher as the losses got deeper. How could I be so stupid?! I’m still in disbelief I blew an account. I was happy to be one of the ones who didn’t blow up an account because I remained disciplined enough to run up basically 1000% in 5 months.

I can’t bring myself to tell my spouse. She would be really supportive I know it, but I can’t even face myself at the moment, let alone have to explain what happened. Disgusted with myself. Utterly disgusted. I can’t believe I let myself get so emotional and out of control. What in the fuck was going through this dense skull of mine?! My confidence is shaken but it’s not at the same time. I’m confident that I just made 1000% in 5 months, and I’m also confident I just blew that 1000% in 3 days. So what does that really say about me as a trader... that I’m probably not too good I’m thinking.

The problem is trading is now apart of my identity it feels like. I love it but right now I hate it. Before a 4K swing up or down was no big deal, cause I’m some big shot or some shit I guess. But now 4K would axe me for good damn near. I want to give up but I don’t cause I love trading. What can I learn from this? Don’t revenge trade. But I knew that. I knew it while I was doing it and I know it now. So why didn’t I fucking stop?? I don’t know what to do from here.

Think you said it all - revenge, too big of position , comfortable. Think we all have walked same path as you, and sometimes I try to learn of my misstakes but its money and it makes you greedy and you increase risk which will eventually make the dog bark back at you. A big loss makes you try to "win" it back and you take higher risks.

If I am not misstaken, you still have funds left? More than you started with? So in a sense you are still in profit =)
The hard work you put it we all have done. See it as a schooling for something bigger...think positive!

For profits we must work extremly hard, for losses we don't have to do nothing it hits you like a sledge-hammer from no-where.

I can tell you this - I have never ever worked this hard in my life when it comes to trading. All the time invested and learning and MONEY. Yet I love what I do, even though my track-record has been for the past 5-6 years not so good. Its only for the last year that things have cleared up and I have understood some things.
All the money lost, all the time "invested" I see it as "schooling".

Go slow, a turtle will win the race and minimize the risk and losses. Have a risk strategy and follow it like the course of the sun.

Never give up! Cheer up m8!

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  #30 (permalink)
zecarlos
portugal
 
Posts: 1 since Apr 2018
Thanks Given: 0
Thanks Received: 1


I lost several accounts with revenge trades until i realized i really cant control it. The solution for my problem was very easy: i asked my wife to change the password on my rithmic software and put a daily loss limit. After that my trading improved a lot.

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Last Updated on March 7, 2022


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