General Trading Chat

vivektrader

In persuit of financial independence.
very sad , but true . we all have seen due to black swan events many big traders, trading companies went bankrupt.
That's a reason enough that every trader should ultimately try to become largely an investor, holding on to a wealth created on trading by solely continuing to trade is difficult for most.
Create a huge portfolio by injecting capital from trading.
Atleast this is what I intend to do.....

Vivek
 
This seems to be only an example of poor risk control by a supposedly experienced trader. NatGas spread apparently is known as the widowmaker for this reason, did he not know that with 30 years of experience ?
How can any 1 event, which does not look too bad in the underlying, cause bankruptcy? I am cynical here, I dont have any sympathy for him. He took his investors for a ride with possibly a system that was always going to do this one day ...

Having diversification is obviously good, but i dont think trading with large capital is undesirable .. Only thing is whether we can mentally handle it and take correct risks.
 
That's a reason enough that every trader should ultimately try to become largely an investor, holding on to a wealth created on trading by solely continuing to trade is difficult for most.
Create a huge portfolio by injecting capital from trading.
Atleast this is what I intend to do.....

Vivek
As much as Savings and Investing are 2 different subjects. So are Trading and Investing.
 

KAL.YUG

Well-Known Member
This seems to be only an example of poor risk control by a supposedly experienced trader. NatGas spread apparently is known as the widowmaker for this reason, did he not know that with 30 years of experience ?
How can any 1 event, which does not look too bad in the underlying, cause bankruptcy? I am cynical here, I dont have any sympathy for him. He took his investors for a ride with possibly a system that was always going to do this one day ...

Having diversification is obviously good, but i dont think trading with large capital is undesirable .. Only thing is whether we can mentally handle it and take correct risks.


Considering 30 years experience, his system must have been a good system
(If it gave a buy signal then it must have also given a exit / sell signal at some point).
Looks like he ignored the system.

Every once in a while, Out of the blue, we ignore our System + Rules and get carried away with " I Cannot Be Wrong" System and continue to remain in the trade.

Sad.

K
 
That's a reason enough that every trader should ultimately try to become largely an investor, holding on to a wealth created on trading by solely continuing to trade is difficult for most.
Create a huge portfolio by injecting capital from trading.
Atleast this is what I intend to do.....

Vivek
Actually there is no limit to escalation. It is the appetite which defines the trader. All participants in the share markets are traders, the rest is just terminology for different time frames. All are equally risky. It's just individual style.
 

VJAY

Well-Known Member
Considering 30 years experience, his system must have been a good system
(If it gave a buy signal then it must have also given a exit / sell signal at some point).
Looks like he ignored the system.

Every once in a while, Out of the blue, we ignore our System + Rules and get carried away with " I Cannot Be Wrong" System and continue to remain in the trade.

Sad.

K
True ...this happens to every trader even any successfull one too.....even we trade with success still in some day/trade we do this ...like overconfidence
 

vivektrader

In persuit of financial independence.
Actually there is no limit to escalation. It is the appetite which defines the trader. All participants in the share markets are traders, the rest is just terminology for different time frames. All are equally risky. It's just individual style.
I differ on this, the amount of risk a daytrader faces can't be compared with that of an informed investor.
Leverage is an important distinguishing factor. Risk of ruin is much more pronounced in shorter term trading, it gets to oneself, it's easy to get upset in day trading and do magnanimous blunders on that very same day itself.
The above I have experienced first hand.
 
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