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Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked -- Ignore unavailable to you. Want to Upgrade?

To: JustInTime who wrote (6134)	1/8/1999 8:59:00 AM
From: backman	Read Replies (1) \| Respond to of 90042

without dwelling on the specifics of my mistakes, the best thing I've learned in the last year re: trading is portfolio management. 1) Keep trade size to 3-5% of capital you're trading with 2) Don't allow loss on any trade to exceed 2% of capital 3) Don't enter a trade without a stop loss that you can live with, and respect it when it gets hit...don't hold your losers, waiting for them to come back Lots of stuff around on this Dr. elder (trading for a living) and William O'neill (How to make money in stocks) LOL david s

To: JustInTime who wrote (6134)	1/8/1999 5:54:00 PM
From: Junkyardawg	Read Replies (7) \| Respond to of 90042

EB Title *My losses in one day:* I have not been posting much on the thread this week because I did not feel that I had anything of value to offer. I have been reading every post that is posted throughout the day when I get home from work. You people really make me want to quit my day job. You make it look so easy to make money. By the way the stocks that Tim gave me to watch 9 trading days ago have made a *"profit"of over $16,000 dollars!!!!!!!!!!!!! techstocks.com The honest good guys can succeed. Anyway regarding your question of how I lost all of my money in the market in one day? Simple stupidity. I used to blame everyone in the world but myself. I tried to blame my broker the m@m's my wife my dog my car you know everyone except the one that was responsible for my trading. I finally realize that it is my fault and know one else's. I stayed home from work one day to daytrade stocks. I made about $800.00. Lot's more than I make on my job. A few weeks later I got bold and did it again. I was daytrading without the knowledge of a pro. I was trying to get out of a stock and take my losses. I put several sell order's in to get the best possible price. I did not have a margin account so I did not worry about selling short. So at the end of the day by my calculations I had lost about $600 minus commissions. That was OK because I expected it. I put my PC. in the shop to get it upgraded that afternoon. I did not get it back for over 3 full trading days. When I got my PC. back I logged on to my broker account. I cannot begin to explain to you the horror that was before my eyes. I am 34 years old and I almost had a heartatack. My account was showing that I was loosing about 2 years pay for me. Man!!!!!! All I could think about was Prison. I called a very good friend of mine and he logged onto my account and told me what had happened. All of the sell orders that I put in to sell the stock I was trading " got shorted"*. The stock since that time had gone up $5 dollars a share. I had several thousand shares I had to cover. I took off from work again the next day to handle the situation. Hoping that the stock would fall at least again some I waited before I bought back the shares. I went up another dollar. So now I had to cover several thousand shares at $6.00. It cost my wife and I everything we owned to cover this position. I do mean everything. But at least I still have my health and a good job. There are many people in the world much worse off than I am. So now I will work twice harder and twice as much to bounce back. I decided to find someone on SI that was very successful and honest. Honest was the key word. I found Tim. So now I am simply saving and saving I am saving 30% of my pay every month to get a small stake in the market. This time I will not go for the home run. I will use my head. I will not make any of the same mistakes again. Best of luck to you I hope that this message will keep someone from making the same mistake that I did. dawg