prof1The New York Stock Exchange started off fairly strong out of the open. I didn’t get to check the morning headlines and opted instead to look at the most recent issue of Veranda as I enjoyed my morning orange juice. If you don’t know what Veranda magazine is, you need to check it out. It is dope off the charts with the kind of aesthetic tastes that gets the blood boiling – but in a good way.

I traded Cocoa this morning and I screwed up royally. I must not have entered in an emergency stop order because when I looked at my trade 10 minutes later, I was down by a really big amount. “Huh!”, I thought to myself ready to climb up to the roof and jump off onto sharp metal spikes on my driveway (just kidding). I was in too much shock to be angry as there’s nothing that anger will do in a moment like that. So there I was with my mauled PnL wondering what the hell I’m going to do. Of course, the first thing was to cut the trade. I’m not the kind of guy that will let trades run to see what they can do if I’m losing. I don’t need to put my brain cells in such gordian knots. I trade and whether its good or not, I’m gone with my capital and that’s that. In this case, this was not “not good” as it was “very crappy”.

I thought about not trading the cash open but I knew that a day like today was where I really needed to trade the cash open. So I bided my time at my computer desk trying to concentrate on the Veranda magazine instead of the fact that I just got my face hammered in. This is almost predictable but when the cash open did start, I was able to – even with reduced size – pare down more than 75% of the loss. After that, it started to be commission churning so I just took the overall red PnL I had for today and logged off.

While I don’t like losing money, I am also forgiving if I have screwed up majorly. Of course, this loss today hurts but what would have hurt is if I closed the books with that huge red PnL number that was staring at me after the Cocoa trade. There are days when I do well in other assets only to get clobbered in the cash open and vice versa. But there really is a reason why I trade both and it was really illustrated here. You don’t know what can happen in the market. While it is tempting to say that it is random, I prefer to think of it as….eh, fuck it – it is random. It’s a gamble. This whole dumb business is a gamble and no gentlemanly explanation will convince me otherwise. I’m glad that I didn’t lose as much as I could have today and it all goes to show that in this stupid job, I would rather be lucky than actually smart.

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2 thoughts on “A Hole That I Don’t Like

  1. I think most traders have a fat-fingered trade or two under their belts. I’ll share two of my war stories…

    1. I’ve had my stop set and I had a decent profit locked in when I thought the market stopped me out, I was shocked to see a negative P&NL, I was trading YM 5 lot, my default stop was set at 1 lot, so when the market was going against me, I was still long with 4 lots… that was not a good day.

    2. As far as luck, I was long YM 20 lot on my phone as my phone locked up I had to restart my phone and log back into my trading account, up 8k!

    Lesson learned… I have to protect my account from dumb mistakes. Poor size/risk management, FOMO just to name a few. Short-term trading is a gamble I thought I could leverage into my favor, still a work in progress.

    Take care Rhiese

    Liked by 1 person

    • i’ve had the first one happen to me more than i care to admit, lol. as for the second one that is a sweet sweet score!

      yeah, as you know, trading is an eternal humbling mechanism. thanks for the comment trin!

      Like

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