The reality of not taking stops

[torero]

These are days that remind me why I stopped holding overnight positions. This is also the reason I stopped trading stocks or overnight holds, but weekends are even worst. But 10 contracts, what was his total equity? 100K? That should have been the minimum had he understood and used risk management rules. He may not have seemed like a newbie but he did make a newbie mistake: overloaded his position size.

[james_gsx]

	Quote:	torero
	These are days that remind me why I stopped holding overnight positions. This is also the reason I stopped trading stocks or overnight holds, but weekends are even worst. But 10 contracts, what was his total equity? 100K? That should have been the minimum had he understood and used risk management rules. He may not have seemed like a newbie but he did make a newbie mistake: overloaded his position size.

I've seen/heard plenty of people who start with a small amount of capital and look like trading Gods because they make a ton of money in a short amount of time. Then it ALWAYS takes one single trade and their entire account gets blown out.

I'm sure there were several people in the same boat as him. For some reason leverage attracts idiots.

[torero]

Greed is behind the reason he had a following, tons of money streaming with little capital to start with. Easy money, people just love short cuts... well they do get cut short. But I think that's how everyone get started in this business, I myself included. The lure of easy money. Once it gets going, it's hard to put down. The reality just hits one day and they have to make a choice: stick with it and go the long route without cutting corners or quit. Most just come back and try again with the same idea, quick easy money, then get blown again. Others just dig in and get determined not to be defeated and determined to become successful.

[james_gsx]

I posted this last week, I'm curious to see how much money he lost over the weekend. This guy really needs a lesson on risk management, he's not just going to lose some cash but his entire house.

http://boltar1.blogspot.com/