Wednesday, May 20, 2009

STUPID!

New Rule: Do not take on two contracts at once until $2500+ is in the account. Even then, be cautious and do not take them on after a losing trade. STUPID!
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2 comments:

E-Mini Player said...

2 contracts on $2500 is still very aggressive. I allocate $5K per contract, even though my day trading margin is $500/contract.

May 20, 2009 at 1:01 PM
ryan said...

True. At certain times (high chance of reversion) I feel I can get away with it. Today I had a one point loss (was still positive for the day) and decided I would give two contracts a go right then and there. Terrible idea that I should've stopped for many reasons. I was pushing too hard after a loss, thinking I could make it back ASAP. It turned into a huge loss (7 points and lots of commissions) as I let myself fall into a self-destructive cycle.

I am still trying to figure it out. But I did get myself out of it and came back to break even (minus commissions) near the end of the day. I then took a shower, came back and threw on another impulsive trade! Which took me down 1.75points for the day plus $136 in commissions!

Garbage. At least I have the day replaying in my head over and over again. That will up the value of today's losses letting me avoid them in the near future (I will have another day like today in the future...bleh).

I fall into these cycles of huge wins, then complacency, a small loss that I let drive me to make a larger loss. I double up (TERRIBLE!) and get caught in the moment, trying to scalp ticks! (Heh).

Then I get angry with myself and figure out a way to come back.

Really, it's all a great learning experience that tends to push me forward rather than back =)

May 20, 2009 at 5:27 PM

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