So, you think you know spread betting huh?...

[wackypete2]

I already admitted I made a mistake by moving into a market I had not thoroughly researched.

Then stop continuing that mistake. You should exit your position and move on. Your posts show that you don't understand how this market works. You are going to get your @ss handed to you. I'm not being cruel. This is sensible advice.

Peter

 

[CoolerKing]

I disagree.

I am now betting with the market instead of trying to buck it. I am still heavily exposed but I cannot fix that until Mon.

Can anyone tell me what happens to a stop/limit placed during a closed market? Does the market jump it unless you pay for a guaranteed stop?

 

[wackypete2]

Good Luck.

Peter

 

[Ross Spur]

I disagree.

I am now betting with the market instead of trying to buck it. I am still heavily exposed but I cannot fix that until Mon.

Can anyone tell me what happens to a stop/limit placed during a closed market? Does the market jump it unless you pay for a guaranteed stop?

That you can't fix it until Monday is your mistake. Unless it's guaranteed, SBs will fill at the first available price. In my experience this means jumping past a stop loss, but not a limit, which is supposedly mirroring what would happen in the real market.

 

[CoolerKing]

Believe me, if I regain my capital I will hold my hands up and say it was purely luck.

Several things helped me.

The investment banks putting a ceiling at $38 which stopped my losses plummeting into -30k or -40k which would have happened if they did not shore up the price.

IG Index only partially closing my position and allowing the stock to regain it's value giving me 20% of my capital to short it with.

I have learned valuable lessons about not using my stop-loss system and also about not leveraging my entire stake on what I perceived to be a sure thing.

If I manage to get out of this then I will return to my system which was working soundly on paper and in real trade.

< 5% of total bankroll being risked
Timed trades in Indices I am familiar with
Stop-loss system which kicks in once losses reach 5% of total capital has been reached.

Until then...I am in full blown Nick Lesson mode (hoping!).

MY stop-losses have been placed within 250 points of the closing price 3863. Hopefully the stock will not open above that and jump it.

If it opens stable then I will change it to a trailing stop loss of 150 points in the belief that the sell orders will push the price through the glass floor and onto its true market valuation ( <34 $).

 

[CoolerKing]

That you can't fix it until Monday is your mistake. Unless it's guaranteed, SBs will fill at the first available price. In my experience this means jumping past a stop loss, but not a limit, which is supposedly mirroring what would happen in the real market.

Ross believe me I know. I was so fixated on price-watching that I completely forgot that trading was about to end. When it closed for the day I realised I was locked in.

Another lesson to be learned. Don't let "your mouse finger" be your stop loss. Have it already in place!

I am so f*cking mad at myself for getting caught up in the whole tornado.

 

[wackypete2]

You've already made several mistakes. OK, sh1t happens. But you can't fix a bad trading decision by making another bad trading decision. You are so fixated on "getting even" that you failed to realize the market was closing so now you are stuck. You are not thinking clearly at all. As of now here are the scenarios:
1) price gaps up and you get stopped out at a price that may remove the rest of the equity that you have. Nothing you can go about that.

2) price opens near where it closed, then moves up and stops you out. Here, you have an opportunity to get out with some money left if you just exit your position at open. How would you feel if you had that opportunity but instead ended up getting stopped out?

3) price opens near where it closed or gaps down. You can exit with some profits if you don't get greedy. Pure luck. The problem is this will scenario will give you confidence to try this again sometime.

You say you are now betting with the market. HOW do you know that? With 1 day trading how can you determine if there is a trend? Instead of sitting back and watching where pirce will go then making a rational decision you are reading or listening to people who have ZERO interest in what your finances are.

There were numerous issues and NASDAQ technical glitches that may have had an affect on how the price moved that had nothing to do with any fair valuation of Facebook. If these issues have been fixed how will that change traders' views?

In summary you cannot determine with any kind of reliability that you are now trading with the market.

Peter

 

[Ross Spur]

Agree with all that, Pete, Another potential problem is the spread soon after the open, whether NASDAQ has any technical glitches or not. Stops could be triggered even if FB doesn't actually trade at those prices, in which case you might get into an argument with IG!

 

[CoolerKing]

You've already made several mistakes. OK, sh1t happens. But you can't fix a bad trading decision by making another bad trading decision. You are so fixated on "getting even" that you failed to realize the market was closing so now you are stuck. You are not thinking clearly at all. As of now here are the scenarios:
1) price gaps up and you get stopped out at a price that may remove the rest of the equity that you have. Nothing you can go about that.

2) price opens near where it closed, then moves up and stops you out. Here, you have an opportunity to get out with some money left if you just exit your position at open. How would you feel if you had that opportunity but instead ended up getting stopped out?

This is my plan. I will be waiting as soon as the market opens and I will manually close my positions immediately. I only placed the stops in case I am not fast enough.

If the price dips - bonus.

3) price opens near where it closed or gaps down. You can exit with some profits if you don't get greedy. Pure luck. The problem is this will scenario will give you confidence to try this again sometime.

I can understand what you are saying but I won't be doing this again. I will just be referring myself to this thread and the parts I typed in red. If I get lucky and get out...I will see it as luck.

I have played poker (successfully and profitably with discipline) before SB. This one incident just overwhelmed me.


You say you are now betting with the market. HOW do you know that? With 1 day trading how can you determine if there is a trend? Instead of sitting back and watching where pirce will go then making a rational decision you are reading or listening to people who have ZERO interest in what your finances are.

Fair point - but the fact that the price levelled at $38 due to the underwriters is what is leading me (and most analysts and mainstream media) to believe the price is not accurately priced and will drop. <<< Don't mistake me - this is a HOPE.

There were numerous issues and NASDAQ technical glitches that may have had an affect on how the price moved that had nothing to do with any fair valuation of Facebook. If these issues have been fixed how will that change traders' views?

In summary you cannot determine with any kind of reliability that you are now trading with the market.

Again, fair point. I should have said trading with a proportion of analysts views (if they are being honest).

Peter

I appreciate the honesty and you are not wrong in what you say. If you had to take a guess what would you imagine the stock opens at?

I am genuinely interested in what you think...

 

[CoolerKing]

Agree with all that, Pete, Another potential problem is the spread soon after the open, whether NASDAQ has any technical glitches or not. Stops could be triggered even if FB doesn't actually trade at those prices, in which case you might get into an argument with IG!

Can you go into a bit more detail. What do you mean by the parts in blue?

Are you saying I might get closed out if the spread moves but the share price does not? Is it better to remove the stops?

 

[wackypete2]

I appreciate the honesty and you are not wrong in what you say. If you had to take a guess what would you imagine the stock opens at?

I am genuinely interested in what you think...

Well, a guess is the best I can do take so take it with a grain of salt.
DISCLAIMER: I am NOT investing or trading in this stock at all.

The most likely scenario that I see is there are plenty of traders sitting on a loss and looking to get out. Many will place sell on open orders that will drive the price down initially when NASDAQ opens. After that? Best you can do is roll the dice.

Peter

 

[p-lab]

I have learned valuable lessons about not using my stop-loss system and also about not leveraging my entire stake on what I perceived to be a sure thing.

If I manage to get out of this then I will return to my system which was working soundly on paper and in real trade.

Hi CK
I was about to ask about the stop you had in place on this trade? so there wasn't one it seems.

Your loss is horrendous and I do sympathise however what you have written over several posts just sounds like screaming alarm bells to me. Facebook / IPO / SB / No stop / At the market etc. What pete has said isn't to be taken lightly and frankly by responding 'fair point' is missing the point, its fact.
I'm not going to join the 'few hundred post T2W club' and start preaching some assumed and copied quotes from the trading 101 starting with 2% risk blah blah but the points are right there. IG pricing is indicative and you are heavy exposed to the brokers spread and their interpretation of the price, probably along with another few poor souls over the weekend. It doesn't matter what the market is doing because you are not trading it. Your FB 'analysis' is just pure assumption and that is what the broker and the market want you to think so they can take all your money which they have pretty much succeeded in already. Also hope isn't a trading strategy sorry to be cruel but it just ain't. You say you have a trading plan that works then stick to it and I certainly hope for your capitals sake it doesn't include any of your Friday moves. Share trading with an SB is tricky enough not even including all the facebook hype.

Good Luck

 

[ChocolateDigestive]

Stuff like this scares me. Facebook bucketshop run a frickin mile. Speechless

 

[CoolerKing]

Thanks guys.

After today I am going to start keeping a trading journal here on T2W. Maybe the collective advice of other posters would have have kept my exuberance in check.

Thanks again all.

 

[Ross Spur]

Thanks guys.

After today I am going to start keeping a trading journal here on T2W. Maybe the collective advice of other posters would have have kept my exuberance in check.

Thanks again all.

Let's hope your gamble pays off and there is an 'after today' for your account, CK.

 

[Hoggums]

I think any successful trader will tell you they’ve been there done that.

The market is rising strongly today – so I would be surprised if FB goes down. However I do not trade individual stocks purely for the reason that I find them too volatile, unpredictable and prone to nasty gaps at open.

Decide what you are going to do before the market opens. If the price is A then I’m going to do B etc and stick to it.

Don’t end up like a rabbit, immobilised, staring into the headlights. It’ll just end badly – you’ll either lose any profit waiting for more profit – or you’ll watch your account go back down to zero thinking if it goes back up 50cents I’ll get out and when it gets there you think – I’ll just hold out for a few more, then it reverses so you say – I’ll wait till it gets back to where it was then I’ll get out. How many people here have done that? – probably everyone.

My personal advice – get out asap. You don’t have the knowledge or the experience to make your money back – you need to formulate a proper trading plan and test it before you get back into the market.

 

[Splitlink]

Hi CoolerKing, I'm not following Facebook but, going by what p-lab writes, the news is not good. I'm not criticising because I have made mistakes, too. Yours was that you were not watching the close time. That does not make you a bad trader, so cheer up! You would not believe the things that I have done. A Spanish proverb says that only a human being is capable of tripping over the same stone twice and I am a very human type! The thing is not whether Facebook has gone up, or down, but whether you covered your ass, or not.

Start your journal. You are a good and interesting poster, just try not to trip over that stone again, there's a good chap.

 

[jungerns]

Sad story for the OP and for anyone else reading Facebook will be below $10 by this year end......

People are literally bored with it.....

 

[Ross Spur]

Sad story for the OP and for anyone else reading Facebook will be below $10 by this year end......

People are literally bored with it.....

Zuckerberg going around with a Black & Decker?

 

[CoolerKing]

Sad story for the OP and for anyone else reading Facebook will be below $10 by this year end......

People are literally bored with it.....

Hopefully. As long as it does not jump over 42 at the opening bell today!