IAMA Guy who just lost half a million (personal money) trading. Ask me anything.
I'm in my mid 20s, went to an ivy league school, and have a pretty cute gf. Oh, and I like to make rather risky trades in my account.
If you care, the loss (~$498k) represents just under half of the trading account.
And most of my personal liquidity (i.e. cash) was in that account.
Won't go into specific position(s) that caused the loss.
And I'd be lying if I said it didn't affect me psychologically. Yes, it's "just numbers" in a "game" (how some traders view +/-), but for me, it's "2 less Lamborghini Huracans". (car lover since a little boy)
Other questions are welcome.
And yes, let's get this out of the way first, which is that, I'm a fucking idiot. Why did I pay for an "elite education" when guys from community colleges are killing it. blah blah.
I've even contemplated ending my life, but will put that on the side for the time being.
So yea, I guess this is bit of a rant (to get things off my chest).
well you're in your mid 20s and have at least half a million saved and just learned what not to do with it, so that's something.
Why didn't you just spend $500k on booze and hookers? Sounds way more fun to me...
Please don't end your life. Let us focus on good things, man you have a cute gf that is good.
May I ask how you got so much $$ at such a young age? Are you some type of god-like trader or are you manging client money, although you did say this was a personal account...
I’m going to guess this was an options trade(s?). Either way it’s immaterial to the point I’d like to make which is:
Does it seem like normal behavior to routinely make risky trades with an increasing size that could have (and in this case did) result in losing half your money? Do you crave the adrenaline? Do you have a gambling problem or addiction? The market can be the worlds biggest casino.
In your own words you are not in a good place emotionally or mentally right now. This isn’t a bad thing, but it does mean you should try to get help. I talk to a counselor to keep things in perspective, and where they should be. I don’t like always dumping stress on the people around me, even though they want to always be kept in the loop, so I vent to someone who is paid to listen. You have a very blessed life, and you’ve found a limit you don’t want to cross again. My advice would be to take a long hiatus from even looking at the market for these risky trades and one item of caution:
If you keep looking at the market, ALL you will see are opportunities in hindsight that you’re convinced you would have capitalized on and been able to dig yourself out of this loss.
agree with archer, rely on your support network for help during this tough time. it's not nearly as exciting, but being diversified and compounding money in HSD-teens% isn't a bad way to build wealth over time.
I lost $500 trading SPX options, made $250 back on Friday. I don't feel as bad now, thanks op!
how did you get so much money for a kid your age?
also, thats very cute MonacoMonkey but thats nothing, I make that money when i'm sleeping i hope you learned your lesson from trading forex options
will you double down? Winners don't quit and quitters don't win.
Had to be trading options.
Why do people associate losing a lot of money to options? You can lose just as much by holding shit stocks like EFX or GE.
Leverage and the greeks.
How is Life in Monaco?>
I don't live there. Just a small flat a few minutes away in Cap D'Ail. Most of my time is in New York.
And it wasn't forex, nor was it "one bad trade". Rather, it was a confluence of trades that all went sour, which makes it more of a detriment to my mental confidence.
To be quite honest, I'd probably be equally as annoyed at myself if it was $50k (out of $100k), or $5M (out of $10M). Disappointment in trading is on percentage terms, not absolute $.
A prime example is Thierry Magon de La Villehuchet. Lost $1.5B (yes billion) with Madoff, but still had ~$3B remaining. Most people with 3 BILLION would be ecstatic. The guy jumped.
For anyone that cares, I'm taking a 3 month hiatus to South America, with special emphasis on visiting/living in the poorest, most destitute areas.
My intention is to hopefully see the "other side" of wealth inequality and perhaps become slightly "happy", if such an emotion genuinely exists.
Ecuador, Bolovia, etc. See you guys in March.
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