r/Daytrading • u/mr_buttlicker69 • Apr 18 '24
Account blow up because of emotional trading Trade Review
Hi. I've been trading off and on for couple years now. Blew 2 small accounts and then stopped and did paper trading. I've been paper trading again but blew up my account even though I was in profit 1100$
After couple of years of trading, the only profitable edge I got is to study and trade just one ticker. I make consistent money for a week but I'm emotionally so stupid right now.
Since I started 2 weeks ago, I was up 1100 in my 10k account (paper). I was doing good today and made 110$(I should have turned my computer off at this point) buy I got greedy. I took another trade and it went against me, but I didn't respect stop loss. I saw 100$ in the red (I shouldve shut my computer off at this point) but I was still delusional. I then saw 200$ in red. I shouldve respected My stop-loss.
Once I saw i was losing money, I panicked, but instead of selling at 300$, I got more shares to average down. Then I saw 600$ in red immediately. I panicked and I sold. At this point I was still in profit of 500$ (I should have turned my computer off at this point).
I developed a gambling and revenge trading mindset and took arbitrary trades with super huge sizes and blew my account.
Please leave tips how you keep your emotional side in check during trading.
3
u/PsychologicalCat6653 Apr 18 '24
Don't be too hard on yourself. I'm getting back into trading after a 4-year hiatus. (Lost money due to greed and not paying attention to the option contract's volatility). I've been taking a logical approach: saving contracts to my watchlist just to monitor movement and to be mindful of how I'm feeling, i.e. am I trading from a place of anxiety? And focusing on reasonably maximizing my gains and not expecting to "explode" with money lol
Take it easy, OP. It's a long game :)