I used to make fun of people for “blowing up” their trading accounts, but I guess I can’t do that anymore after making mistake, after mistake, after mistake.
My account has gone from $11k, all the way up to $30k, and subsequently down to a grand total of $3,498. Yeah, I’m an idiot.
After this drop, I took a 6 week long break from trading and did a lot of thinking. Since then, The Challenge has sparked a new mindset in me, and by mixing in a number of personal and server-wide plays, I have brought that up to a current balance of $6,183.
Any input from others is greatly appreciated, but I decided to create a journal to document primarily for myself.
Goals:
If I follow a server play, I need to fully understand it - no blindly taking positions
To be extremely intentional in my learning - ask questions about anything I am unsure of, conduct proper research, etc
By the end of 2022, to achieve an account balance of $300k
Thanks for asking - I should have added above that I took a 6 week break before getting back into trading. I did a lot of thinking in that period. Mainly, the mistakes I made were:
Used insanely large positions of shares
FOMO’d continuously, thinking that I’d at least get lucky once in a while to offset previous losses
Listened to Reddit - do NOT listen to Reddit
Refused to learn options, restricting myself greatly
Searched for “get rich quick” plays/squeezes, as opposed to consistent, thoughtful trades
Most importantly, didn’t take profit - watched $8k of ATER gains disappear, $10K of PROG gains disappear, $20k of ESSC, etc
I can confidently say that none of these mistakes will continue to occur.
Always take those profits - I have been there - biggest thing to remember is it not about what everyone else is doing or making don’t compare yourself to them, set some weekly goals and when you hit them relax, take a break I find the worst possible time to trade for me is after I make some big gains - I need a little cooling come back to reality period or I am likely to lose it all.
As someone who’s done a number of these things, I’ll give my thoughts (for whatever it’s worth):
Used insanely large positions of shares
Been there, this server really harps on responsible position sizing. 4-5%, give yourself room to average down (no one gets perfect entries all the time).
FOMO’d continuously, thinking that I’d at least get lucky once in a while to offset previous losses
This takes some self-control, admittedly, but if something is already running 10%/15% on the day, don’t chase it. Yeah, you might be able to scalp a profit, but more often than not, you’re going to get burned. If there’s a catalyst and you believe in the play, wait for a pullback.
Listened to Reddit - do NOT listen to Reddit
Generally just good for laughs.
Refused to learn options, restricting myself greatly
There’s a ton of great info on the forums to learn about options. Don’t start buying if you don’t understand them though. I would also suggest just buying one to start, to learn how the pricing moves with the underlying.
Searched for “get rich quick” plays/squeezes, as opposed to consistent, thoughtful trades
Generally speaking, the only person getting rich quick is the person promoting it. That being said, legitimate squeeze plays do exist, but try to understand the mechanics behind them. The education section has more info.
Most importantly, didn’t take profit - watched $8k of ATER gains disappear, $10K of PROG gains disappear, $20k of ESSC, etc
Take profit, take profit, take profit. It can’t be repeated enough.
I can confidently say that none of these mistakes will continue to occur.
As someone who has to consciously stop himself from doing these, you probably will. Try to learn from each one and not beat yourself up too much.
Added: 3x SCO April 6c for .50 - betting on a small oil reversal at some point
Sold out of my BBIG 2.5c at open for + 70%
Tried to get sell fills on HGEN 5c at 1.50, which would have been +50%, but didn’t fill. Looking to sell on the next pump to secure profit and move on.
Added 1x WEAT 10c 04/14 (1.05 average) - Harvesting prices continue to increase. Farther out expiry this time.
Added 1x UVXY 14.5c 04/01 (1.27 average) - I think this is a no brainer heading into fed speeches tomorrow, especially when we consider how the market continues on this strangely persistent bull run.