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Trader loses 130k+ on short, owes eTrade 100k
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Trader loses 130k+ on short, owes eTrade 100k

  #31 (permalink)
Hi Mom!
Bridgeport, Ct
 
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DrewDown View Post
Modesty? He seems to be making it clear that he expects to be handling this mostly on his own.

Modesty would be not asking in the first place.

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  #32 (permalink)
Elite Member
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TheShrike View Post
I feel absolutely nothing for this guy. In fact, I think he's got a lot of nerve begging others for money to help him out of this. Of course he'll spin this as it wasn't his fault, market manipulation, insiders screwed me over, e-trade didn't liquidate me, wah wah wah. Anything to deflect the blame. This is what happens when you don't treat the markets with respect. I think he should sit in the corner by himself and eat his humble pie but that's just my opinion.

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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  #33 (permalink)
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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.

XS

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  #34 (permalink)
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paps View Post
can this happen...are there are stats on gap up / gap down 1000pts. have seen extreme readings for flash crash events....but a whats the biggest gap up ?

always in the factor for 500pts if in a long OVN ....but 1000?

Anything can happen! ...and probably will

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  #35 (permalink)
 R.I.P. 1987-2018 
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TheShrike View Post
Why did he only ask for 5k? Something stinks in Denmark...

just give him a few bucks and stop asking questions


R.I.P. Joseph Bach (Itchymoku), 1987-2018.
Please visit this thread for more information.

Last edited by Itchymoku; November 19th, 2015 at 11:15 PM.
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  #36 (permalink)
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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.

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  #37 (permalink)
Market Wizard
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jodistrict View Post
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.

Matt
Optimus Futures

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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  #38 (permalink)
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paps View Post
can this happen...are there are stats on gap up / gap down 1000pts. have seen extreme readings for flash crash events....but a whats the biggest gap up ?

always in the factor for 500pts if in a long OVN ....but 1000?

You are correct there are day limits and circuit break systems but the markets can go to limits every day in a row. Nothing unusual specially in commodities. Pls see attached doc.

Rulebook can be found here at CME

The "thing" in my latest post was that if there is no buyers or sellers you cannot trade and get out of your position.

So it is good advice to know your instruments (read the rule books etc.). Of course you can lower this risk by hedging but nothing is 100% bullet proof.

Attached Files
Register to download File Type: xlsx special-price-fluctuation-limits.xlsx (43.5 KB, 8 views)
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  #39 (permalink)
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I feel sorry for him. This is a good warning. However, I'm not comfortable with the idea of swing shorting low cap stocks overnight especially with that leverage to account size.

Zerohedge did an article on the catalyst for the big move, suggesting possible manipulation motives also:

"Devastated" Trader Crushed By Soaring Biotech, Starts Online Begging Campaign To Fund $106,000 Margin Call | Zero Hedge


Last edited by Cloudy; November 20th, 2015 at 03:30 AM.
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  #40 (permalink)
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jodistrict View Post
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.

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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