Commentary on The Journey from the Basement

[tar]

Anyone who leverages that much, must be though. If you need leverage, just put in more capital. Wow! That a simple concept. Why trade with money you cannot afford to lose?

Who said cant afford to lose ? And who said i am leveraging that much ? There's no correlation between "dont trade with money that you cant afford to lose" and using leverage .

 

[Mr. Charts]

I have a feeling SOCRATES will be back in 2016..and maybe even The Bull himself!

Trading forums are nearly a thing of the past..with facebook and twitter..but there are still a good few of us that prefer forums over the new social media crap

It is not the same without SOCRATES and The Bull..but i have a feeling things will get better in 2016 when they return :clap:

Your comment belies your signature

You are also assuming t2w allows Albert back.......

 

[Lúidín]

Your comment belies your signature

You are also assuming t2w allows Albert back.......

At this stage they might even pay him:idea:

Forums are nearly a thing of the past..even you have your twitter link in your signature..shows that the vendors know where the idiots are frequenting

As for my signature..where do you think i got it from

 

[Lúidín]

Who said cant afford to lose ? And who said i am leveraging that much ? There's no correlation between "dont trade with money that you cant afford to lose" and using leverage .

Ye are both acting like i did years ago..take it from me..bikkering will get you nowhere

ye are both right..and ye are both wrong

it is best to not use leverage..if you have enough money to put into a trading account

it is ok to use leverage for certain types of trading..such as daytrading..but you must use the correct risk parameters..and take the % risk per trade based on your actual trading capital..not your leveraged value..in this case leverage allows you to trade highly priced stocks..which are normally the best candidates

 

[tar]

Ye are both acting like i did years ago..take it from me..bikkering will get you nowhere

So true , but what you call the exchange you had last night with hhiusa :


http://www.trade2win.com/boards/discretionary-trading/209020-live-trades-37.html

 

[Inquisitor]

It does not matter one little bit who i was..or what i said..all that matters now..is what i now say

I think you do really want to let us know don't you .... Ah go on, go on, go on, go on, go on, go on, go on

 

[Lúidín]

So true , but what you call the exchange you had last night with hhiusa :


http://www.trade2win.com/boards/discretionary-trading/209020-live-trades-37.html

sometimes we forget ourselves

let us all forget about silly things that do not really matter for 2016...and concentrate on making money...by whatever means

i still don't like the germans though

 

[hhiusa]

Who said cant afford to lose ? And who said i am leveraging that much ? There's no correlation between "dont trade with money that you cant afford to lose" and using leverage .

There is absolutely a correlation between leverage and trading with money that is not yours. If you have an account with $10,000 and you leverage as little as 2:1 then you are borrowing what you don't have.

If you leverage 2:1 with $1K of that $10K for $2K exposure, then you should have invest $2K of your own money. In situations 2) you invest all of the $10K for $20K exposure. You obviously have no business opening that trade because $10,000 of it is not yours.

You are trading money that you cannot afford to lose. If you want to place a $20,000 trade, then you should have deposited the $20,000 in the first place. Since you have not done this, and are still trading with leverage, it is very clear that you have thin capitalization.

 

[Lúidín]

I think you do really want to let us know don't you .... Ah go on, go on, go on, go on, go on, go on, go on

FECK OFF :cheesy:

 

[tar]

There is absolutely a correlation between leverage and trading with money that is not yours. If you have an account with $10,000 and you leverage as little as 2:1 then you are borrowing what you don't have.

If you leverage 2:1 with $1K of that $10K for $2K exposure, then you should have invest $2K of your own money. In situations 2) you invest all of the $10K for $20K exposure. You obviously have no business opening that trade because $10,000 of it is not yours.

You are trading money that you cannot afford to lose. If you want to place a $20,000 trade, then you should have deposited the $20,000 in the first place. Since you have not done this, and are still trading with leverage, it is very clear that you have thin capitalization.

What you fail to understand that not everyone will keep averaging down without a stop like you do . You assume that if my trade exposure is 20K then i am risking 20K as well and i will wait and watch it going to zero without doing anything !

Using leverage doesn't mean i cant afford to lose the money and not using leverage doesn't mean you can afford to lose the money , if you put 100K in your stocks account that doesn't necessarily mean you can afford to lose it .

 

[Inquisitor]

FECK OFF :cheesy:

 

[Lúidín]

What you fail to understand that not everyone will keep averaging down without a stop like you do . You assume that if my trade exposure is 20K then i am risking 20K as well and i will wait and watch it going to zero without doing anything !

Using leverage doesn't mean i cant afford to lose the money and not using leverage doesn't mean you can afford to lose the money , if you put 100K in your stocks account that doesn't necessarily mean you can afford to lose it .

sean quinn..Irish billionaire..lost his family fortune by using a cfd leveraged account to buy shares in anglo irish bank..

it is hard to imagine how someone so successful with his other businesses..would risk so much..but then again..they say more always wants more..

my opinion..is..he was either trying to take over anglo to add to his empire..or he was just a greedy fool like most are..either way..the fact is..he risked way too much..and he has paid dearly for it

back in 2007..when i was overtrading..and the shi.t hit the fan.i could barley sleep at night..had thoughts of plus 100k sterling going thru my head..i had to get out to keep sane..a valuable lesson that i will never forget

can you imagine what way quinn must have felt..it is unthinkable that someone could risk 4 billion euro..what the fu.k was he thinking..well..you know what the say..

a fool and his money are easily parted

i am no longer a fool..i still make mistakes..but i will never ever overtrade again..NEVER EVER..no matter what

 

[Lúidín]

hint hint

 

[Splitlink]

Your comment belies your signature

You are also assuming t2w allows Albert back.......

Did Albert do anything wrong for T2W to refuse him back? There are plenty worse than him.

I did not agree with Albert and crossed swords with him many times.. Even his arrogance I found distasteful but T2W is big enough for me to be able to avoid him, as I do with others. I am sure that they do the same to me. The truth is that I like a more peaceful life, these days.

If I remember, his swan song came when he was supposed to be making money with options. I don't remember the exact details, now, but he lost a lot of credibility.

 

[hhiusa]

What you fail to understand that not everyone will keep averaging down without a stop like you do . You assume that if my trade exposure is 20K then i am risking 20K as well and i will wait and watch it going to zero without doing anything !

Jumping around to extremes as usual. Nobody said anything about not doing anything while you watch it go to zero. If you have $20,000 of exposure with an account size of $10,000, then you absolutely cannot afford to lose the $10K ($20,000 - $10,000). That $10K is not yours. That means that your losses grow geometrically.

Let us expound upon this to 10:1 leverage. This means that if you invest $10K with $100K exposure, then you will lose all of it if whatever you doing drops 10%. Many financial instruments have been known to move this much in one or two days. So, exactly how far do you let it drop before you sell? It seems to me like you are selling prematurely because you cannot afford to ride it out. This means that you are overexposing and/or overleveraging. You are too thinly capitalized.

Using leverage doesn't mean i cant afford to lose the money and not using leverage doesn't mean you can afford to lose the money , if you put 100K in your stocks account that doesn't necessarily mean you can afford to lose it .

How can you still fail to see what you are doing. You should never put money in the market that you cannot live without. While I do not want to lose it, If I put 100K into the market, I will not be bankrupt if I lose it all. It is less likely that I will lose it in equities than in options or futures.

I have not failed understand anything. You are risking everything that you put into the market. Obviously, you will not be stupid enough to buy equities and watch it plummet to zero. If you leverage 2:1, then stock price will have to halve itself to lose it all.

Thin capitalization
A company or individual is said to be thinly capitalised when its capital is made up of a much greater proportion of debt than equity, i.e. its gearing, or leverage, is too high.

 

[tar]

How can you still fail to see what you are doing. You should never put money in the market that you cannot live without.

.

Who said i cant live without the money i put in my account ?

It is less likely that I will lose it in equities than in options or futures.

.

You mean like Bear stearns stock , or Lehman Brothers , or maybe you mean Citigroup , or is it possible you meant RIMM ... I think maybe you mean biotech stocks !

 

[hhiusa]

Who said i cant live without the money i put in my account ?

Why say this?

Using leverage doesn't mean i cant afford to lose the money and not using leverage doesn't mean you can afford to lose the money , if you put 100K in your stocks account that doesn't necessarily mean you can afford to lose it.

For the thousandth time, why invest with money that you cannot afford to lose?

You mean like Bear stearns stock , or Lehman Brothers , or maybe you mean Citigroup , or is it possible you meant RIMM ... I think maybe you mean bio tech stocks !

What do those companies have to do with the conversation. Where is your proof that all of their assets were tied up in stocks.

 

[hhiusa]

I mean if you were the one holding these shares ...

What idiot would invest all of his money with one company? If you fail to see that, then Luidin is right. A fool and his money are soon parted.

Which bio tech stocks? name as many as you can. You have managed to name a handful of stocks. Option premiums are forfeited at the expiry date if you do not make money. Futures require you to uphold the contract unlike options. Derivatives are all speculation.

You mean like Bear stearns stock , or Lehman Brothers , or maybe you mean Citigroup , or is it possible you meant RIMM ... I think maybe you mean biotech stocks !

A fortiori, one should not overleverage as they did. Look what happened to them.

 

[tar]

What idiot would invest all of his money with one company?

And what idiot would hold the dow futures and watch it moving against him 20% from 17500 to 14000 ?

 

[hhiusa]

And what idiot would hold the dow futures and watch it moving against him 20% ?

Futures are locked in smart guy. They are not options. I never said anything about 20%. You never answered the question about how long you would hold it. If you are taking on loss, how much loss do you take? You said that you do not wait and double down.