Thanks, I’ve read that thread before but I guess I’ll have to go over it again. In the meantime, if anyone can provide a condensed list of the candlestick formations, what each one is called, what your next move would be and what other circumstances one might take into account before trading a signal that would be that would be very helpful.
TDs Journal
- Thread starter trader_dante
- Start date
- Watchers 55
Just look on the internet, they're really not that hard to find, and in any case the candles should only make up part of your trading plan. They're not to be solely relied upon. Also trading is completely subjective, you need to explore the options yourself and find what works for you, there's not just one way to trade a certain pattern etc. Good luck.
trader_dante
Veteren member
- Messages
- 4,535
- Likes
- 1,538
Not stopped by any means but lost a lot of money trading with very poor discipline. I was long equities and ran my stop which was a huge mistake that cost me over four times more than I had intended to lose. Then to make matters worse I quadrupled my positon size Friday afternoon on signs of temporary support, basically betting everything that the US would approve the bail out bill and markets would open up Monday and then got killed when they didn't and the market came off.
After that huge loss, I was subject to the whim of wanting to come back quickly and this fuelled a series of further bad trades. I went long again seconds before the bailout plan was rejected and the markets collapsed. Before throwing in the towel, I finally decided to wait for a pause in the rally on Tuesday and go short and as luck would have it, got caught in the continuation up.
Since this hit me quite hard and I have to keep my head straight - after all trading my real account at work is far more important - I have pulled out £185 so it simply cannot be bet, leaving a small amount in there (referral fees can still not be withdrawn) and will sit patiently in cash until I have an opportunity to go back into the market on a good setup.
I will get round to writing down details of the trades and amount left but I want to carefully examine what I did first and am away for a few days too.
I will come back from this. I usually trade well when my back is against the wall (shame I couldn't trade well this time before I got pressed into that situation) and never had a problem running up a small amount of money into a sizable one but when you drop your guard and the market deals you a blow that is emotionally destabilising the best thing you can do is back off.
See you all soon.
Tom
Last edited:
simplepsyman
Newbie
- Messages
- 4
- Likes
- 0
Hey Dante, **** happens mate. And your honest enough to tell us all about it - Respect. So hard to detach emotion from trading, despite reading all the books etc. Sure you'll be back and when the market kicks your ****, which it always does. Best thing is not to trade. Reading all your blogs over time, your trades are carefully thought out and usually winners. Dont loose heart mate. Best Wishes. Mike H.
rags2riches
Well-known member
- Messages
- 399
- Likes
- 135
Yeah I 2nd that.
To put it into perspective, you're still alive and the account is still standing. Looking forward to seeing you bounce back.
Regards.
Rags.
trader_dante
Veteren member
- Messages
- 4,535
- Likes
- 1,538
Yep, the account is still standing and well up on the intial £40 invested (at least £185 is secured by withdrawal and there is still a balance in the account to come back with).
A real shame when I had almost £1,600 though.
But I'll make it back - I always do.
If your edge is there you can always make money - it's just your emotions that dictate how much of it you keep.
I'll update soon. This is by no means over.
I promise.
A real shame when I had almost £1,600 though.
But I'll make it back - I always do.
If your edge is there you can always make money - it's just your emotions that dictate how much of it you keep.
I'll update soon. This is by no means over.
I promise.
trendie
Legendary member
- Messages
- 6,875
- Likes
- 1,433
cant believe TD is a mere mortal, just like the rest of us!
dont worry, TD. believe it or not, the fact you make mistakes and take losses, and are still in the game, should be far more reassuring to newbies and experienced traders than the ones who swagger onto T2W saying how they are so clever that they never have losses.
I can relate to taking a knock to the confidence. but you just have to keep playing, dont you?
dont worry, TD. believe it or not, the fact you make mistakes and take losses, and are still in the game, should be far more reassuring to newbies and experienced traders than the ones who swagger onto T2W saying how they are so clever that they never have losses.
I can relate to taking a knock to the confidence. but you just have to keep playing, dont you?
I know you like Livermore m8. But you DON'T HAVE to copy him.
There isn't anyone alive who hasn't made stupid mistakes. Traders tend to make a lot more than the average person. Just goes with the territory I guess.
Now put that gun down and get back to it!
There isn't anyone alive who hasn't made stupid mistakes. Traders tend to make a lot more than the average person. Just goes with the territory I guess.
Now put that gun down and get back to it!
trader_dante
Veteren member
- Messages
- 4,535
- Likes
- 1,538
F off Gecko.
All jokes aside, I got a little bit over confident and the market found me out.
The combination of a big risk, a "spanish stop" and the desire to "come back" was good for a severe beating from the market.
But a healthy dose of humilty is good for all of us, right?
All jokes aside, I got a little bit over confident and the market found me out.
The combination of a big risk, a "spanish stop" and the desire to "come back" was good for a severe beating from the market.
But a healthy dose of humilty is good for all of us, right?
Last edited:
"Spanish stop" .......
Your timing is, as usual, impecible....He has just been singing your praises over on his ET thread. "Best trader in the world" no less!
Anyway. Great journal. Just a bumb in the road. Get back on the horse and ill come back and check it again in a few weeks.
good luck.
Your timing is, as usual, impecible....He has just been singing your praises over on his ET thread. "Best trader in the world" no less!
Anyway. Great journal. Just a bumb in the road. Get back on the horse and ill come back and check it again in a few weeks.
good luck.
grimweasel
Well-known member
- Messages
- 488
- Likes
- 108
Top marks for admitting this Tom. It's reassuring, in a way, to see that a good teacher like yourself ,still has the balls and humility to admit his error on such a public scale. A truly brave move that I think will do you the world of good in the long run. A true example to all on how to deal with the 'curve-balls' that the market randomly delivers from time to time.
If it's any consolation Tom, John Authers in the FT's Short View toady was reporting that event (congress no-vote) as the true 'Black Swan' of this whole crisis so far. No-one saw this rejection coming and it's probability existed outside the scope of the prediction models (Gassuim Bell Curve et al). So, I bet you were not the only big trader to suffer this fate at all. Draw a positive from it; a learning experience. This is how we gain credibility and strength as Traders. Learning about ourselves and our flaws!
Best of British,
Grim
If it's any consolation Tom, John Authers in the FT's Short View toady was reporting that event (congress no-vote) as the true 'Black Swan' of this whole crisis so far. No-one saw this rejection coming and it's probability existed outside the scope of the prediction models (Gassuim Bell Curve et al). So, I bet you were not the only big trader to suffer this fate at all. Draw a positive from it; a learning experience. This is how we gain credibility and strength as Traders. Learning about ourselves and our flaws!
Best of British,
Grim
timsk
Legendary member
- Messages
- 8,721
- Likes
- 3,421
Hi Tom,. . . I got a little bit over confident and the market found me out.
The combination of a big risk, a "spanish stop" and the desire to "come back" was good for a severe beating from the market.
But a healthy dose of humilty is good for all of us, right?
Yes, indeed it is - and I second the comments from others - 10/10 for coming clean and admitting you're fallible and make mistakes like us mere mortals! Although it's horrible for you (I speak as one who knows), I think it's a good thing that this has happened from the point of view of all those members who follow your threads - especially newbies. You make trading look not only simple but easy at times, which is the only downside to your success. When newbies see that even you fcuk up then, hopefully, they will realise that although this business is essentially simple, it's far from easy. The only thing that's very easy about it is to get it very wrong, very quickly, and usually after a period of solid and consistent gains. Undoubtedly, you will learn and benefit from the experience, let's hope others can too.
Enjoy your time out!
Tim.
trader_dante
Veteren member
- Messages
- 4,535
- Likes
- 1,538
Yes, I hope others can learn from this mistake.
There are several very key points to make from this:
1. Traders are usually most vulnerable after a winning streak. I have read this before in many trading books and experienced it firsthand. Overconfidence can lead to a trader dropping their guard. If you drop your guard the market has a way of finding you out.
2. Keep your risk to a minimum and be consistent. The more you win, the easier you feel it is to make money. It is only rational to want to risk more the better you are doing. This is extremely dangerous. If you are on the wrong side of a move it can all be over very quickly.
3. If you are wrong, get out. There is nothing wrong with a large stop if it is based on a sound technical reason. There is everything wrong with a large stop that is placed because you DON'T want to be stopped out. (we call it the "spanish stop round here) If the market is trending or the moves are violent, the market can find your stop. No matter how far it has to go.
4. The unexpected CAN and WILL happen from time to time. Don't count on something to happen.
5. If you suffer a destabilising loss, stop trading immediately.
There are several very key points to make from this:
1. Traders are usually most vulnerable after a winning streak. I have read this before in many trading books and experienced it firsthand. Overconfidence can lead to a trader dropping their guard. If you drop your guard the market has a way of finding you out.
2. Keep your risk to a minimum and be consistent. The more you win, the easier you feel it is to make money. It is only rational to want to risk more the better you are doing. This is extremely dangerous. If you are on the wrong side of a move it can all be over very quickly.
3. If you are wrong, get out. There is nothing wrong with a large stop if it is based on a sound technical reason. There is everything wrong with a large stop that is placed because you DON'T want to be stopped out. (we call it the "spanish stop round here
) If the market is trending or the moves are violent, the market can find your stop. No matter how far it has to go.4. The unexpected CAN and WILL happen from time to time. Don't count on something to happen.
5. If you suffer a destabilising loss, stop trading immediately.
Last edited:
BSD
Veteren member
- Messages
- 3,819
- Likes
- 988
You'll make it all back mate.
That's trading isn't it, wasn't it Livermore who said sthg along the lines of man not necessarily making the same mistake twice if he is lucky and good, but then there are always several tens of thousands of brothers and cousins of this mistake just waiting right around the corner.
;-)
The best thing is honesty, claiming personal responsibility for everything good and bad that happens to one, and not blaming the markets or the weather or ones partner yada-yada, no, I messed up - and who doesn't from time to time -, but no probs, I'll get right back on up and continue on my path to success !
That's trading isn't it, wasn't it Livermore who said sthg along the lines of man not necessarily making the same mistake twice if he is lucky and good, but then there are always several tens of thousands of brothers and cousins of this mistake just waiting right around the corner.
;-)
The best thing is honesty, claiming personal responsibility for everything good and bad that happens to one, and not blaming the markets or the weather or ones partner yada-yada, no, I messed up - and who doesn't from time to time -, but no probs, I'll get right back on up and continue on my path to success !
Yes, I hope others can learn from this mistake.
There are several very key points to make from this:
1. Traders are usually most vulnerable after a winning streak. I have read this before in many trading books and experienced it firsthand. Overconfidence can lead to a trader dropping their guard. If you drop your guard the market has a way of finding you out.
2. Keep your risk to a minimum and be consistent. The more you win, the easier you feel it is to make money. It is only rational to want to risk more the better you are doing. This is extremely dangerous. If you are on the wrong side of a move it can all be over very quickly.
3. If you are wrong, get out. There is nothing wrong with a large stop if it is based on a sound technical reason. There is everything wrong with a large stop that is placed because you DON'T want to be stopped out. (we call it the "spanish stop round here
4. The unexpected CAN and WILL happen from time to time. Don't count on something to happen.
5. If you suffer a destabilising loss, stop trading immediately.
Repd you for point 3 TD.
Always put the stop where the stop needs to go, based on support and resistance. If implied vols have doubled and this approach leads to twice the stop, that's to be expected isn't it?
Far better IMO to then reject a potential trade on a risk/reward basis than slip in to "the myth of the tight stop".
Joey
