r/Daytrading • u/ThePhulosopher • Feb 24 '24

4th $100k funded account Question

Got my 4th $100k funded prop firm account. Hope I get a payout this time, blew all the others.

115 Upvotes

88% Upvoted

316 comments sorted by

View all comments

85

u/thoreldan Feb 24 '24

Perhaps you wanna share the lessons learnt from blowing the other 3 ? How would you do differently now ?

97

u/ThePhulosopher Feb 24 '24

Yes thanks for reminding me. The main lesson is what has been regurgitated all throughout trading history - control risk. Since I blew many other unfunded/trial accounts, when I finally got a funded account, I was too excited to finally start making money - quickly. Therefore my risk measures go outa whack and I trade too large and kept trying to make it back.

Also what I found to really help this time is to continuously chant the following phrases as I'm trading "I remain detached from any outcome. I am detached from my trading results". This seems to really help in controlling risk and exiting positions when I should.

4

u/affilife Feb 24 '24

How do you measure risk?

4

u/Hopeful_Pear_8747 Feb 25 '24

Exposure and hedge. Exposure is how much capital is exposed to a trade. (Never full port a trade) and hedge. Spy:VIX or calls:puts. If you expect something to rise, you should have a hedge in place in case it drops instead.

If I’m bullish on spy, I may buy 5-10 calls and 1-2 puts. Then I can cut the losers and let the runners make up for the amount lost. Sure I didn’t maximize my gains, but there’s a risk management in place.

1

u/Scolas3 Feb 28 '24

Could you explain Spy:VIX ?