Okay, on 5/28/14 I purchased two futures contracts in /CL (oil) and walked away (WENT TO WORK FOR 5 HRS) without setting a stop. I don't know what possessed me. I got distracted, or overconfident, or the paper money reality kicked in and I just wasn't paying attention. A LESSON LEARNED.
Those $104 contracts dropped like a stone and STILL haven't come back. Since my last post, they've dropped even further. I'm posting my running Cash & Sweeps.
The "white line" shows the adjutments that have been made to the account for the daily settlement prices. (if the market goes up, these will adjust back to original
The circled red item is the 5/28 purchase of the two losing contracts.
And here is the Active Trader page, show in full with both the Chart, the indicators and the Active Trader ladder on the right.
Until I sell these losers, I haven't got actual losses. Since they are July contracts, I have until mid June to allow them time to come back. So they're not truly
losers yet. BUT, in fact, every day that passes with these sitting here, my cash fund is tied up and I can't be making my daily profits, so in fact I'm losing money
every day whether these two contracts finally are sold at breakeven or a small profit. (the likelihood of the market swinging high, high, high above my $104 price is
next to nil.)
This paper money account is crucial in learning how to trade. You do NOT walk away from open contracts without setting a stop. Decide what you're willing to take as
a loss ($100? $500?) and SET THAT STOP. Or sit there and day trade, and get out when it turns on you.
I had doubled my original $5K fund to over $10K. Now I have (on paper) "lost" $3,540.00 of those $5K profits. Since 5/28! Just to show you how fast it can turn
on you, so this is not a strategy for sissies. If your emotions get involved here, you're dead in the water.
I'm hanging in with this, and kicking myself for not setting a little stop. I'd rather lose $500 than $3500. Wouldn't you?
Happy Trading. Learn from my mistakes!
And PAPER TRADE if you are not a pro!! I only share these "bad" trades with you because every other website seems to be selling something and telling you
how much money you're going to make. It's true you can make money, but if you're careless or uneducated, you can lose it as fast as you make it. And more. So
I want example of both the good AND the bad, in full disclosure, so that readers can actually trust that this blog is about the truth.