Hello everyone,
I usually don’t feature other people’s trading videos on my blog but this one is just worth watching, so bear with me please.
I was just browsing through YouTube to see some commentaries and reactions from other traders upon yesterday’s 0.75% rates cut and I stumbled upon this gem. This poor man lost US$ 40,000 in two days by holding a position on the futures market over the weekend. Then the market crashed and all of a sudden his account was axed by an 80% in the blink of an eye…
I warn you in advance that it’s a pretty teeth-itching video to watch to be honest. It’s indeed a tough world out there…
Here is the original video as he was watching his account drop in real time like there was no tomorrow.
http://view.break.com/438322 - Watch more free videos
And here are his comments later on, once he had cooled off a little bit.
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23 January, 5:51 pm
Didn’t he have a stoploss? I have a feeling that he was risking more than 2% of his account. And what exactly was he trading? I could trade Dow futures on Sunday before a decline even started. This man is the quintessence of improper money management.
Thank you for posting this Hector as it provides a substantiation of the need to have money management skills.
23 January, 6:35 pm
i nearly got caught out with the surprise fed rate change when the indicies jumped 200pts just like that. Any stop would have been jumped. luckily i figured big spikes might happen at the usa open [but after the open] so stayed out.
23 January, 7:31 pm
That’s why I hate overnight positions.
You just don’t have a chance to get out.
I think it will take quite a while until he recovers mentaly from this plunge. Not to mention the monetary loss.
23 January, 8:04 pm
Absolutely - the problem for this fellow right now is to recover from the mental hit. Trading is 90% a psychological game at the end of the day, in every possible way.
One thing is for sure: he will never leave an over-leveraged, stoploss-less, counter-trend position open through the weekend. Boy, that’s quite a compendium of what a trader should never do :(
-HECTOR-
23 January, 9:20 pm
to add insult to injury on his latest youtube video he talks about how the video has been ripped of his site and posted on another site where people are making money out of it from the clicks.
he also talks about how its made him an overnight internet star with many serious trading blogs talking about it.
24 January, 2:22 am
To even add more insult to injury, he thought the US markets would crash on Tuesday; He even went as far as to say that a 1% cut wouldn’t affect the markets. Makes you wonder how he made 50,000 dollars from 10,000 dollars in one year in the first place. Probably highly speculative trades. He didn’t even use any system in which to substantiate his trade.
Nice Gbp/Jpy trade Hec. That pair can be quite predictable on the 15 min charts if the opportunity arrives. It’s daily range in quite encompassing.
25 January, 1:40 am
Hi Hector
Damn the poor guy stuffed up big time. Good educational video.
cheers
3 February, 2:05 pm
A fairly strong argument against leaving positions open over the weekend. I feel for the guy because there’s nothing you can do when that happens except to learn from it (or average down or reverse or just plain give up). Hector the second video is gone, what did he say in it?
And Michael stoplosses don’t work when the market gaps past it.