[That One Guy]

Some of you may have seen this before, but I decided to post it. He re-posted it on his blog, so it caught my interest. He said, he didn't want to be in the position, but he couldn't accept a small loss. You hear of people blowing out there accounts in a a few months. This guy blew out his in a weekend.

http://highprobability.blogspot.com/...d-my-life.html

This is just a realization, for a young trader like me, for the potential demons to come.

[smwinc]

The best comparison I can think of to trading is that it's similar to driving a car.

It is completely irrelevant if you have been driving safely for the past 10 years - it only takes one split second of deciding to look away while you are driving, and your entire life is completely ruined.

One loose trade. One trade you decide to just "hold". One trade you have "conviction on". That is all it takes.

[That One Guy]

Originally Posted by smwinc »

The best comparison I can think of to trading is that it's similar to driving a car.

It is completely irrelevant if you have been driving safely for the past 10 years - it only takes one split second of deciding to look away while you are driving, and your entire life is completely ruined.

One loose trade. One trade you decide to just "hold". One trade you have "conviction on". That is all it takes.

My father has been a butcher for over 30 years now. He experienced this phenomenon. 23 years in the business and while cutting on the saw, he looked away and complacently chatted with the customer. Before you know it, he sawed his index finger off. 23 years is a long damn time in one specific area. I, consider him an expert, but it shows you the realization, in which you never know. Life is full of probabilities and you just have to accept the fact, that anything can happen at any time.

Originally Posted by Jwhite198621 »

My father has been a butcher for over 30 years now. He experienced this phenomenon. 23 years in the business and while cutting on the saw, he looked away and complacently chatted with the customer. Before you know it, he sawed his index finger off. .

His name wasn't Abdullah, was it?

[brownsfan019]

Someone is on a youtube video kick...

Occasionally, google video will do as well.

[BlowFish]

Imho one of the key metrics you can know about your trading is the risk of ruin. To really trade without irrational fear in its many manifestations you need to know and accept your RoR.

http://www.traderscalm.com/ror0.html

Is a great little site that deals with RoR and how trading within a comfortable zone can lead to trading calm.

[mister ed]

Alternative titles for this thread:

The bad side of holding positions over the weekend
The bad side of holding long equity futures positions over the weekend
The bad side of holding long equity futures positions over a long weekend
The bad side of not accepting a small loss initially