Trading Tales of Woe - Part 1
Trading Tales of Woe
My new book Naked Trader 5 is now out - if you buy it I hope you enjoy it.
I thought an extract from traders’ tales might be useful if you are a market beginner. If you can avoid some of these mistakes, then you will save a lot of money.
These are real stories from real people who made errors, very common ones - try not to repeat these!
So I have been doing well for a while on my practice trading account so I decided to setup a real account with £3,900 in it. On the first day I grew that to £4,350. This morning it was at £4,400 at 2:30 when the us markets were open I bought some Dow to hold onto for a while. I immediately started making losses and hit the stop loss losing me £500.
Rather than stopping I began to feel sick and started frantically trading. I just lost more and more making more and more trades. I sat there panicking for about 1 hour in the end loosing £2,400. I sold everything and lay down feeling depressed and sick with anxiety thinking why didn’t I just take my first stop loss and leave it. In the end today I’ve lost 60%. My account has £1,500 in it now. It could take years to make 60% back. I lost all my Vulcan abilities when I panicked. I don’t know what to do.
A hard one. What it shows first for Max is gambling tendencies. I wonder whether Max should leave trading alone? He went straight into gambling on indices after getting courage from pretend trading. My suggestion is to never ever gamble with things like the Dow Jones again. He needs to start again slowly with an ISA buying decent companies and holding. Max has done the worst thing – never ever start with day trading markets. It is the road to the poor house and fast. Beginners take note.
Click here to see Part 2 of the article