Your comments are harsh but I do agree to an extent- he is immediately trying to place blame on his broker and I hate ( as a broker I'm a little biased) people like that. Had he just said "I really screwed up here..." I would have more compassion. It is written in every single brokerage literature in history that a short has " Unlimited Loss Potential" and is the riskiest trade one can make.. They don't say " we can cap you at your account value" because they can't!!! It's unlimited liability... We had some huge margin calls in my old branch back when the Internet bubble burst- well into the 7 figures- one group had to sell thier golf course, vacation homes, boats, planes etc. and the whole town knew about it because of the legal proceedings- now that sucks! This guy will move forward and be fine.
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I can't help feel some sympathy for this chap, the markets can teach harsh lessons. We've all been there before.
I recall one time when i started trading a new equity long only momentum system, the day i started it spit a long on a stock called KZL, the next day they went bust and i had my capital split into 20 parcels, it wasn't chump change either, but i could swing it. Still, it shocked me and i took a while to recover from it. Stops can't save you from bankruptcies.
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He says he is a fairly new trader. He shorts 8,400 shares of a high risk stock to get a maximum $2 profit with unlimited risk. But then he says that he will be back trading. This is insanity. He should be on a simulation for a minimum of a year and learn how to trade. He will just lose whatever he trades. His wife is paying for his addiction. I feel sorry for her.
You started your post well with the right advice of looking at risk versus reward. But, Why EVERY single issue which trading related solved by simulation? Offering simulation to such tactics is the same level of insanity. It will do nothing for him.
Greed is Greed. Sooner or later lack of discipline will crawl up on you, and no "Sim" improves such fundamental flaws.
There is a risk of loss in futures trading. Past performance is not indicative of future results.
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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I agree. There is a seed of wisdom in your reply. Of course everything is very personal so it is not a good idea to generalize too much but in my case I lost 20K in my very first "day trading" positions and that put me into 5 year learning curve without any live trading (just planning, reading and training in simulator).
I was lucky enough to understand immediately that I had NO IDEA what I was doing and this saved me from more losses. Today after over 15 000 hours on the markets the situation is a bit different but still I cannot save myself for the very very bad luck.
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