How To Lose Money Trading

[zupcon]

If you participate in The Trading Game, and operate in line with my view, for each and every trade, then you are guaranteed to lose your money, every time you trade, guaranteed

Im really struggling to understand how you can lose money on each and every trade, it simply cannot happen, with the exception of instantly closing trades and losing the spread.

Socrates once claimed a winning run of 104 trades. If he can call 104 consecutive winners, then by definition, he can call a run of 104 consecutive losers simply by taking the oposite position, but at some point, his losing streak will end, and he'll call a winner and your assertion that each and every trade will be a loser, will be disproved !

Take a crazy strategy such as setting the smallest stop you can, and trading against the trend, 99 times out of hundred you'll be taken out, but you'll get the occassional winner even doing something so ridiculous. Same goes for straddling news releases etc

regards
zu

 

[CYOF]

Firstly, the only person that can answer this question is the person that has the experience of losing money at a faster pace than losing money on other occasions, perhaps comparing the velocity of one negative equity curve to another based upon negative financial performance, measured as an end product of your trade decisions. From these experiences they will be in a position to define what is the fastest way to lose money, based upon tangible experience. Ofcourse, this question is ultimately subjective due to the varying degree's of negative equity curves as experienced by each individual trader. The only person who can answer this question is the person who has defined a very fast way to lose money, via experience, but how can this person be certain that this is the fastest way to lose money ? Perhaps there will be another experience someway down the road that is even faster still !

However having made these basic statements, I will offer several general rules that are commonly accepted as methods of losing money, one method maybe be faster for one person than it is for another, based upon that individuals life/trading experiences.

1 Dont trade upon an emotional impulse.
2 Dont enter a position without any clear exit strategy, as defined by your trading technique.
3 Dont trade against probability.
4 Dont take a position without any awareness of why you decided to enter.
5 Dont buck the trend.
6 Dont break your money management strategy.

The answer is ofcourse "WHO KNOWS" !!!!

Whilst your post is very relative to trading, in general, you have not come closer to my view.

As such, the answer to your post is No.

Thank You.

 

[2be]

If you participate in The Trading Game, and operate in line with my view, for each and every trade, then you are guaranteed to lose your money, every time you trade, guaranteed.

Now, you can of course cut your losses real short, which will be the sensible thing to do, or you can sit and Hope that you will recover some of your losses, but the fact remains, if you operate in line with my view, you will lose your money every time, guaranteed.

Blowing ones account is an entirely different matter, and this is more to do with the amount of Capital Risk taken per trade, Position Sizing and Expectancy of the system (or method) - note: when I mention system, I am not referring to a mechanical system, I am referring to a method of trading, and this method produces an average Expectancy figure for a given set of trades, and the number of trades will be determined by the chosen market, and the traded instrument within that market.

In my view, the above three elements, when used in unison, allow for complete control, but, when used in isolation, can be detrimental to the trader, especially if the trader is new to trading.

Thank You

CYOF I am newbe as you can see, and with limited experience I would agree that trading just with the intention to recover losses puts any trader at greater risk of loosing more. The losses generated by me while trading I have accounted for as learning costs (especially since I convinced myself that for me paper trading is not a good way to learn) , and a cost to participate in the market. I think that things like lack of discipline, impatience, inability to learn would greatly contribute to loose while others are gathering what the market offers.

 

[Grey1]

The easiest way to lose money is wasting your time on threads like this ..
Time = Money hence every post costs you money ... Lol why donot you all go back to the market and kick ass instead of wasting your time guys.

Muchas Gracias Mr market for my daily bread

 

[barjon]

Another mass cull of extraneous, albeit inoffensive, posts. Apologies to anyone who objects.

cyof

I'm being pretty tolerant, but don't you think it's about time to cut to the chase?

fwiw I've got a veritable shedload of ways to lose money hidden away, but I suppose the quickest way is to "kick against the pricks", "fight the market", "go against the money flow" or however you want to describe very much the same thing.

jon

 

[trendie]

........
I have stated My View, and the reason I say "View" is to differentiate between a View and an Opinion, the difference between which I have previously stated, and that is, for the purpose of this thread, a View is based on Experience, whilst an Opinion is based on Inspiration.

My view is 100% in keeping with the title of the thread - How To Lose Money Trading.

CYOF,

since we all have differing experiences, and our views are a function of experience, the answer will STILL be valid for everyone.
( I have experienced losing by risking too much, others have experienced losing by not sticking to plans, etc.)
Our individual views are still right, irrespective of whether they coincide with your views/experiences.

revised question:
What, in CYOFs view, (born out of CYOFs personal experience, (not yours)), is the quickest way to lose in trading?

 

[timm]

Whilst this is of course correct, and is a very important selection criteria in relation to choosing an instrument to trade, we are talking about the Trading Game in general.

As I mentioned in post#1,

"The first question is broad - but the field will narrow."

So the answer is No, this is not my view.

Thank You.

CYOF,
I don't think you will get many more sensible suggestions about this topic. There is obviously a lack of knowledge amongst the members on this particular topic. Perhaps it's time to share some of your vast experience of the subject.

regards
timm

 

[moussepeter]

CYOF,

You lose money trading when you don't admit that YOU (yes, an individual, a person, a human being) are the holy grail. Trading is not about the system - it's about self-discovery and self-mastery. Trading success is defined by 20% system- and 80% psychological factors.

 

[CYOF]

Apologies all, but I have other commitments, and other threads to reply to.

I am busy this morning, but I see that I have some more warnings to issue, and maybe even the first ban request.

I will leave you with the following hint, as I see some are getting restless, but, I will not say my view until someone comes very close, I can not be much fairer than that, otherwise we could be here for weeks on end.

I have already stated that 2 words will be my answer, after which I will then expand on, and present additional information, some of which is already existing on T2W, to back up my view.

Clue

9 letter word _ _ _ _ _ _ _ _ _ & 6 letter word _ _ _ _ _ _

If no one has already given the answer, as I need to pick up on where I left off yesterday and respond to all posts addressed to me, I will consider adding some of the letters as the days go by - but I have not made my mind up as to whether this would be for the benefit of the readers, as it may be an insult to all, and I do not want to lose one of my chances, else, I will have to apologise to all again.

Thank You.

 

[JTrader]

How to lose money trading

Greed kills

Ego clouds judgement.

"oh, on this trade I'm not going to be proved wrong AGAIN, I don't think i could cope with that. I'm not going to execute my SL, I'll hang onto it, and wait till it comes back into profit."

Days, weeks or months later = margin call time. Time to take the loss on the chin and accept the ridiculous mistkae that you made, or add more funds to your account to keep the trade alive, with the risk of losing more and all because of greed and a fragile ego.

 

[Mr. Charts]

I've just read the recent comments and, of course, grey1's is the best comment.
As I'm sure you realise, cyof, if you play guessing games there will be amusing answers and you should not take them personally. They are, like many of your posts, just fun.
Nine letters and six letters, huh?
Having cleared my mind of everything of value, these pop up deep from my subconscious:

Delusions...belief,

Psychosis...valium,

Publicity...oxygen.

Of course, these bear little resemblance to "truth" or "facts"; they are, like all perceptions, in the viewer's mind and have only a passing connection with reality

I shall now return to the serious business of finding this afternoon's winners this morning.
Richard

 

[dc2000]

how to win friends and INFLUENCE PEOPLE

 

[chump]

9 letter word _ _ _ _ _ _ _ _ _ & 6 letter word _ _ _ _ _ _
incorrect timing

 

[CYOF]

Im really struggling to understand how you can lose money on each and every trade, it simply cannot happen, with the exception of instantly closing trades and losing the spread.

Socrates once claimed a winning run of 104 trades. If he can call 104 consecutive winners, then by definition, he can call a run of 104 consecutive losers simply by taking the oposite position, but at some point, his losing streak will end, and he'll call a winner and your assertion that each and every trade will be a loser, will be disproved !

Take a crazy strategy such as setting the smallest stop you can, and trading against the trend, 99 times out of hundred you'll be taken out, but you'll get the occassional winner even doing something so ridiculous. Same goes for straddling news releases etc

regards
zu

Barjon, please check in with me prior to deleting posts, as I am finding it a little difficult to keep track of what I have answered, and I do not want to be repeating myself.

Thank You Jon.

Now Zu,

We must use common sense here, and think about what way people normally behave.

Most people will trade once or twice, or maybe even a dozen times if they have the guts, but what is common is that the first few reality shocks tends to "wake them up" so as to speak.

Now, after experiencing the reality of trading, which they find is nothing like they thought it would be, they start to think about all kinds of silly things, like - maybe, what if, perhaps, if only, etc, etc.

They have failed to see, even after all the courses and reading material that they have soaked up for many months, that there is one simple little thing, that if the fail to fully understand, will result in them losing money every time they place a trade.

We have already mentioned that the amount of loss is for another question, but the fact remains, if you trade with my view, the two simple words, the first been 9 letters, and the second been six letters, then you are guaranteed to lose money every time, guaranteed.

We will expand on this when someone gives the answer, and we can illustrate how this operates in different markets, as different markets will have different instruments to facilitate trade, but, the answer is the same for all.

I hope this helps with your question, but do feel free to ask additional questions if you so desire, for this is a serious business, although many here seem to think that trading is some sort of pastime to be spent on public bullet boards, what a funny way of thinking, really.

Thank You.

 

[CYOF]

CYOF I am newbe as you can see, and with limited experience I would agree that trading just with the intention to recover losses puts any trader at greater risk of loosing more. The losses generated by me while trading I have accounted for as learning costs (especially since I convinced myself that for me paper trading is not a good way to learn) , and a cost to participate in the market. I think that things like lack of discipline, impatience, inability to learn would greatly contribute to loose while others are gathering what the market offers.

Welcome Newbie2be, do you mind if I call you Obe1Canobe, as the name has a nice ring to it.

All of your points are indeed relative, and what is more, without experience you are susceptible to becoming Inspired, and if you become Inspired, then you run the risk of never discovering the true Art of trading, which is, _ _ _ _ _ _ _ _ _

Aha, maybe that will be another question?

Thank You Obe1Canobe.

 

[CYOF]

The easiest way to lose money is wasting your time on threads like this ..
Time = Money hence every post costs you money ... Lol why donot you all go back to the market and kick ass instead of wasting your time guys.

Muchas Gracias Mr market for my daily bread

Hello Grey1,

Very nice platform - looks like IB TWS. I find MBT Navigator much better myself.

Time=Money, and thank you for reiterating this very important point, for I have stressed it many times over the last week or so, on several threads.

Threads like this can be of immense value to some traders, especially those who are starting out.

You see, like yourself, although with a different style - as I do not like CPU's controlling my capital, I prefer to use my own CPU - I have aslo traded multiple instuments at the same time, mostly Nas Tech Sectors, and mostly in the first hour of trading, for that is the best time for the methods that I employ.

Now, my methods, or your systems, or anyone elses methods or systems, for that matter, may be of little interest to many, and the simple resaon is that, many are not interested, and the reason they are not interested, is because they have other commitments, and these other commitments will not allow them spend enough time to develop the required skillsets in order to trade as we do, with our systems & methods.

It is really very simple, and like my question, many fail to se that there are other obvious things staring them in the face, that if they only take the time to fully understand, then they open up many other avenues, that up till then, were not available to them, and the reason they were not available, was again very simple, and that was, because they did not understand.

It is all a matter of choice - but the secret is to choose that which suits you best, not that which suits others best, very simple, but very true.

Thank You.

 

[barjon]

Barjon, please check in with me prior to deleting posts, as I am finding it a little difficult to keep track of what I have answered, and I do not want to be repeating myself.

Thank You Jon.

.

cyof

Well just to help you out , I'm deleting everything from time to time not directly related to your question. Nothing gone today, so far, but I'm readying my hatchet for later on. Thus, any posts you make that are not directly related to your question will be shortlived.

As I said last night, don't you think it's about time you cut to the chase?

jon

 

[CYOF]

cyof

Well just to help you out , I'm deleting everything from time to time not directly related to your question. Nothing gone today, so far, but I'm readying my hatchet for later on. Thus, any posts you make that are not directly related to your question will be shortlived.

As I said last night, don't you think it's about time you cut to the chase?

jon

Well, I am glad that some of you find this a big joke, for I do not, at all.

I stated in the first post that this was my last attempt, and as the same old carry on is now gathering momentum, Again, I am no longer willing to dedicate my precious time to assist those who are starting out, and who may be interested in the views of experienced traders.

It has been brought to my attention that there are indeed more serious matters that need my focus at this current time, and with that, I will now allow the dunces, as Socrates rightly says, to continue to disrupt and de-rail any thread that is worthwhile.

Jon, please move this thread to the foyer, the second one in the last week, and close it.

This is really getting out of hand and is going beyond a joke.

I have more serious things to be doing, really.

Au Revoir.

 

[Priceman]

Can we at least have the answer then or was that always the intention, not to give it...

 

[faro0485]

Nice thread

Unfortunately I did not know about this thread until today.

As a 22 year with only 1 years experience in the Forex market, I've lost a fair chunk of my cash. And I can help you lose your money too. All you have to do is as following:

1. Start off with no plan whatsoever - don't worry if your bad a statistics, you wont be need it.
2. Add more to the trade when your winning - trades made after a significant news report.
3. When you made a killing after 1 trade, you can be sure that your invincible and no trades can hurt your balance.
4. Never analyze a loss - just forget about loosing a trade and go do something else.
5. Find an indicator that is sure to win and if you make a loosing trade, find a new indicator.
6. Pile on successful indicators on to a chart.
7. Trading GBPUSD and EURUSD? Don't worry about what these currency pairs: EURGBP, USDCHF or USDJPY. It's not like your trading them...
8. When your feeling lonely while trading, go head of too a chat room or a forum thread. Find out how the folks there are doing. They're making money? Well just copy what they do... Did a trade go bad? Keep it quiet and forget about it.


The expression on your face should be as so: :cheesy: - you can be happy, you know how to lose money at trading.