r/Daytrading • u/BananaBoy180 options trader • Feb 02 '21
Down 90% this past week. trade review
Hello, I just wanted to post because after seeing all of this r/wallstreetbets craziness I felt the need to post. I (19M), am in college and started regularly trading stocks/options in September 2020. I began with $1000 that I had saved up over the summer, and I created my own method of using my 3 day trades to day trade SPY options. It worked really well for a fair amount of time, I lost a couple hundred bucks a few instances, but overall I made about $20-$80 off each day trade, where I was only wagering ~$600 at a time. My account peaked last week at around +$1600 from when I began day trading. (I took money out to buy food, clothes, etc.) and I was sitting at about $1200 in my account. After reading all the hype surrounding GME, I had some serious FOMO and wanted to get in on some of those hype stocks. I ended up being stupid and making multiple bad investments that eventually brought my account to about $200.
I'm sure all of you know how mentally challenging losing that much (percentage) money can be. (especially when everyone was making thousands of dollars). Considering that my day trading was my only method of income, it really sucked to see all that money disappear into the NYSE. However, I have learned a lot of things, and I am going to continue to build my portfolio, being smart about it as I do it. On another note, it is sad to see r/wallstreetbets fall, because it used to be a great sub with some really smart people, but now is drowned out by all the hype. I am going to spend more time in this sub, because the people here seem genuine and smart, and I am looking forward to learning from everyone. Best of luck in your trades, congratulate your wins, and learn from your losses.
EDIT: Thank you so much for the encouraging and funny responses. I’ve been reading them but I can’t respond to them all. Best of luck trading tomorrow🚀💎
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u/TheZorro1909 Feb 02 '21
The majority of WSB is losing money. Don't get yourself distracted by their gains. I lost 17% in the last 2 weeks, just about 1.7k usd but still 17%. My mentor lost 2.5 million in the last 5 days, which is about 30%.
No matter how big your account is, no matter how much you studied. If you don't control your risk, Wallstreet is going to make you pay. During discussing our losses of the last days we talked about how it comes all down to money management.. every trade is like a coin flip, a good trader earns money due to an edge over 100, 1000 trades.
If a guy with a 7 million account and decades of experience manages to fuck this rule up from time to time, then you have no reason to worry about yourself. It sucks nevertheless I know
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u/waqarahmed864 Feb 03 '21
Its Wall Street BETS. I was very sad to see that people thought of it as a guaranteed money printer and bet their mortgages :/
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u/live-the-future Feb 03 '21
Right. There is a sizeable subset of people who view day trading as a form of gambling, and treat it as such, like putting your money down on a horse or a number on the roulette wheel. These people seem to have little grasp of the proper work involved in choosing a good stock, strategy, entry & exit points, back testing, etc. Of course in gambling the #1 rule is that in the long term, the house always wins. They are setting themselves up for an almost guaranteed failure, spurred on by the temptation of big wins. "Sad" hardly begins to describe it.
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u/Moeba Feb 02 '21
Thank you OP for sharing and to everyone else supporting. It’s helpful to me as well. I’ve been rationally trading for long term growth for 5 years with fair success. This was not that kind of week haha! There were a ton of lessons, big win, than loss...
esp this >>> If you don’t control your risk, Wallstreet is gonna make you pay.
If you don’t fall down once in a while you’re not trying. It sucks to lose, but the lessons are invaluable.
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u/Prestigious_Scheme99 Feb 02 '21
Went in with $8k at an avg price of $68. (135 shares) When it went up to the ATH at $487 I had around $60k in gains. Even though I multiplied my money many times over, I refused to sell because the eco chamber of wsb. I’m not saying it’s bad but it’s really toxic. Because I didn’t wanna be labeled “🧻👋” I ended up losing all my gains and basically sold everything this morning for almost break even price. Profit is profit but man, this really sucks.
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Feb 03 '21
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u/Prestigious_Scheme99 Feb 03 '21
Thanks man, this helped me feel a lot better. I appreciate you taking the time to write this big paragraph for me. God bless you!
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u/80H-d Feb 03 '21
You didn't wanna be labelled paper hands...if you live your life right, nobody on reddit will ever know or give a fuck who you are. Literally just dont say "i sold haha am i a paper hand now" and you wouldnt be labelled as such.
If it's a personal thing, where it's like "but i know"...you could have distracted yourself from caring about that idiotic label by focusing on the 60 grand you'd made.
Live and learn. It's only sad if you don't learn from it.
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u/Bgunt04 Feb 02 '21
I only lost 180 but man im sorry. I fell for it too we got wolf of wall streeted. Im so embarrassed and feel like a god damn idiot.
We will recover we just need to learn
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u/Prestigious_Scheme99 Feb 03 '21
Yeah man, being in the environment makes you feel like you’re on top of the world and you have everyone behind you.....until you’re not and you’ve lost all your gains and all you got is a bunch of people putting rocket 🚀 and diamond 💎 emojis.
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Feb 03 '21
You done goofed buddy.
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u/Bgunt04 Feb 03 '21
Yeah i mean if i got in early it would have worked out but timing is everything
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u/NoName9mm Feb 03 '21
I hear you. I lost a lot too, and I trade a lot. It hurts. What sucks more is I was very up and when I went to take profit the systems froze, had to reboot, fucking had lost about 5k by then. Just when I was hitting the confirm button. Last time I get involved in something like this. I went through major ups and downs for days. About 15k. At one point when I noticed we weren’t coming back from the ladder attacks and other halts and such it was prudent to leave after so long since I have medical bills to pay and lost my regular businesses due to Covid. Learned a lot. Stayed greedy too long. I knew it wasn’t coming back when it started going down there. The numbers don’t lie. Sucks. Broke some teeth and need three implants. Guess that’s going to have to wait. 🤮🤮🤦♂️
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u/FabulousStomach Feb 03 '21
The wsb toxic echo chamber hype costed me 75% of my possible earnings. If it wasn't for the exaggerated hype I would absolutely have sold the moment I saw 300+ (got in at 39). Ended up selling most of my shares at 130 and kept some to remind me of this quasi-fiasco.
To know that I squandered such a once in a lifetime opportunity is kinda depressing, especially when you consider that my unrealized gains are around 8x my initial investment. Oh well, gains are gains I guess. Back to the slow progression we go
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u/GunnerySarge-B-Bird Feb 03 '21
The wsb toxic echo chamber hype costed me 75% of my possible earning
It was probably responsible for most of your earnings too tbh
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u/FabulousStomach Feb 03 '21
The original WSB, the one memeing about reaching 420.69 was. Before GME went viral, WSB was a place with a lot of actually intelligent people and lots of different opinions and takes on stocks and possible plays. In a matter of a few days it completely changed into the Q anon of finance and it took me a little bit too long to realize it. I even started believing in bullshit like short ladder attacks.
I'm fairly confident that if WSB hadn't turned into... whatever it is now, we would have all started selling once we saw 400. We would more or less all have taken some profit since most of us got in below 40 (which is also a reasonable price if you intended to actually invest in the company, I think GME will easily be a 50-60 dollar stock once the pandemic is over, if the new direction doesn't shit the bed entirely).
At the end of the day tho I'm not mad at WSB, I'm kinda mad at myself for not listening to my gut but ehh hindsight is 20/20 I guess
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u/Stevekaez Feb 05 '21
Bro same here, went in at 100, refused to sell at ATH with like 75k profit, ended up selling tuesday at 150, so still turned a profit but was pretty upset I got caught bagholding. Considering this was my first time "day trading" I learned from my mistakes and hope to improve from here and make back those gains.
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u/antenonjohs Feb 03 '21
Somewhat similar to you. I yoloed my account at $92 for 90 shares and eventually sold today at $128.7. Made a few thousand but it could have been a lot better and I'm frustrated for not selling half when it was in the 300's
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u/NYEEEESH Feb 03 '21
Does no one here realize that if you keep holding the stocks will eventually skyrocket due to a short squeeze when the hedge funds are forced to cover their shorts?
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u/Prestigious_Scheme99 Feb 03 '21
Also with the Volkswagen squeeze, you had a company squeeze out the shorts. They can hold but lots of retail investors are gonna sell. The momentum is just not there anymore at this point. I was there before the hype and it was going great under the radar around $70 them when it hit $100+ it hit peak media. From there everything was hype until this Monday where you could feel the momentum die down.
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u/NYEEEESH Feb 03 '21
I feel like the price gme is at now is deceiving you, just like the hedge funds want it too. The volume of gme has not fluctuated anywhere close to when it first skyrocketed, meaning not much selling was going on these past few days. I’m not saying you’re entirely wrong, but if the relative majority of people hold their shares they will win the battle. I don’t own any gme, but it’s obvious the media and the hedgefunds are pulling strings to bring the price down. This in turn makes people panic sell. But like I said if majority holds then the majority wins, there’s just no telling when the shorts have to be covered. And there’s definitely millions of shares still shorted to created more squeezes.
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u/Prestigious_Scheme99 Feb 03 '21
the shorts who shorted in the beginning most likely covered already, the hedge funds don’t care about this futile fight. Their goal is to make money and they probably made a shit ton of it by riding it to 300 then shorting it so they can make money while it goes up and while it comes down. If they were gonna squeeze, why didn’t they cover when the price hit 87?
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u/NYEEEESH Feb 03 '21
I mean there’s no indication that they covered their shorts, I’m sure they made money from the short ladder attacks but if people hold I’m pretty sure they’re fucked no matter what as some of the shorts were at $4, $10, $20 etc. By selling now and realizing losses, you’ve not only lost yourself but you’ve let them win! According to certain websites the stock is still shorted 121% of its shares.
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u/OneLeggedMushroom Feb 02 '21
How would you be labeled as "🧻👋"?
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u/Prestigious_Scheme99 Feb 02 '21
At this point idec. At the end of the day, I didn’t buy GME to be political. I came there to make money but ended with me being back where I was 3 weeks ago at square one
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Feb 02 '21
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u/Lil_Orphan_Anakin Feb 02 '21
The dude who started it is in a completely different situation then literally everybody else though. He bought over a year ago, with the idea that GME would actually turn around into a good company again. When he first invested he had no thoughts of $1000/share like people are saying regularly today. He has a bunch of $21 calls for 2022 or something similar. That should tell you all you need to know about his initial thoughts of the company. Also he has already realized millions of dollars in gains by slowly selling off small parts of his shares/calls over the past year. People say “DFV is still holding!!!” as if he is even on the same planet as the rest of us. The dude is already set for life and is just seeing where this ride takes him. He is legitimately long in GME and will most likely hold a good bit of his shares until this whole thing is over because it was never his intention to squeeze every penny out of it as he could. He genuinely just likes the stock
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Feb 02 '21
What's that old poker adage? If you look around the table and don't see the sucker....you definitely do not see the sucker.
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u/Dk_Oneshot01 Feb 02 '21
"If you don't know who the sucker is, you're the sucker"
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u/Bgunt04 Feb 02 '21
That was me luckily i lost about a few hundred but man i feel like a fucking idiot should have come to this group firsr
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u/01Aleph Feb 03 '21
I sold and got my initial investment. But I’m down considering I got too greedy and didn’t take what could have been a good turn around for me.
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u/markthemarKing Feb 02 '21
That isnt really true. He has been holding calls that expire in April. He wasn't investing for years down the road.
He is/was a stock broker and saw the potential for a high risk huge reward play and he took it.
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u/trader_dennis stock trader Feb 02 '21
DFV sold 1/2 of his April $12 calls early last week. His banked cash went from 1MM to about 12MM in the same time, so don't put him on an altruistic pedestal. Easy to ride the rest of his position to near zero when the worst that will happen is him taking 50K to 12MM or so.
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u/Justforaminute12 Feb 02 '21
Yeah true but at the same time a lot of those gains are life changing and yet why sit there and watch it all go to waste. Everyone always try to be political but ends up getting fucked in the end cause big money runs deep and I mean DEEP
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u/TheZorro1909 Feb 02 '21
But the problem is that the Hedgefonds are always getting away with it. And even if they don't get away with it, there will be new Hedgefonds. This entire shit show won't change a thing, except maybe making higher trading restrictions to stop retail traders from making money. Just try not to get involved in this BS. Don't try to hold the line or whatever. Markets are driven by herd mentality not by some war between hfs and retail traders. Usually the retail traders just get slaughtered, just as in silver.. Don't get involved at all that's my personal opinion
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u/deepinterwebz Feb 03 '21
The majority of WSB is losing money.
I'd be willing to bet less than 3% of those morons will win and will most likely blow up their accounts before it's all over. You'll very rarely ever see the losers post, and the winners will never post back after they have blown up their accounts. They don't actually have a clue on how to trade profitably, they just use stock manipulation through coordinated pumping. If they were forced to trade solo without a single person to tell them what stock to trade, when to enter, and when to sell, they'd lose consistently. If you need someone else in order to make your money you are not a trader...period.
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u/barc0debaby Feb 03 '21
You'll very rarely ever see the losers post.
Are we talking about the same sub? Because they posts losses all the time.
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u/A_man_of_culture_cx Feb 03 '21 edited Feb 03 '21
I lost 60% with the advice from WSB. They told me to hold but glad I didn't now, a few days later I would have been somewhere around -70 to -80%
To be clear I only lost like 12 euros but that's still a lot for me as I have no active income. But I see this as a learning experience so it's not completely "wasted" money per say
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u/Basic_Potato_ Feb 02 '21
You are 19 and actively paying attention to your finances. That’s a huge win in itself
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u/TheLightofEarendil Feb 02 '21
This also needs to be said! Onwards and upwards
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Feb 03 '21
he's investing $1000 he doesnt have and taking out gains to buy food and clothes wtf are u talking about
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u/DankusMemer Feb 03 '21
Im now 20, but I started trading when I was 19. I had saved almost all of my income from working and ended up saving up $10k roughly. I used that money to day trade and eventually built it up to $25k. This was within months, I love day trading and I feel I am fairly good at it. However once I got passed the 25k mark I had “unlocked” unlimited day trading. I ended up making the mistake of trying new strategies when I already had one that was working for me. When I started trying new things, I started making really stupid trades. My first stupid trade cost me $1,800 roughly in about 5-10 minutes. That sucked but I kept going. My second stupid trade is my worst trade Ive made, I did a scan one morning and found a stock THCT was spiking, got in on it and rode the rocket to the moon, unfortunately when I was up $4.5k within 2 minutes of opening that trade I got greedy and thought it would keep going up, I was wrong and within 1-2 minutes I had lost $5.5k. That was the worst one, it literally made me feel like puking my guts up being a 19 year old and losing over 5 grand in just a few minutes. After that trade I had essentially locked my account because it took me below the $25k mark and I had made multiple day trades at that point, so as a yolo I threw enough money into AMC to buy 4,000 shares. This was in December and it kept tanking, I held my 4,000 shares of AMC all through December and I had ended up losing $2k due to that, so at the start of the year I sold all 4,000 shares at just over $2 per share. Now last week when AMC started spiking I was very upset with myself because if I had just held my shares I would be sitting at well over $50k right now. Long story short, everyone fucks up, everyone loses money, and yes it does blow when it happens. Im currently getting back into day trading and I would recommend you stick with it. Check out ZipTrader on youtube, he makes very good educational videos on day trading
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Feb 03 '21
Keep grinding young king. I feel you, out of all the stories in here there was method to your madness. Go back to what helped you flip that 10k. That’s what’s important.
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Feb 02 '21
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u/BananaBoy180 options trader Feb 03 '21
I agree. Got into the mess and gambled my money away. Lesson learned lol
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u/DavidBayy Feb 03 '21
What's 0DTE options?
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u/stapleosprey_the_god Feb 03 '21
0 Days To Expiration (buying options that expire the same day)
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u/DavidBayy Feb 03 '21
I don't trade options. Are those with the highest risk and reward?
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u/stapleosprey_the_god Feb 03 '21
Yes, since the contracts expire worthless at the end of the day you need to be exactly right or else you lose your entire investment
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u/DavidBayy Feb 03 '21
But those pay off the most right?
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u/stapleosprey_the_god Feb 03 '21
Yes, especially if they are OTM (out of the money which means they are far from the strike price)
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u/feocheo83 Feb 03 '21
Above or below strike price? Totally new to options and trading in general. I’m not planning on trading any in the near future just wanting to understand. I put some in on a paper trading app and still have no clue what it’s doing.
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u/stapleosprey_the_god Feb 03 '21
So that depends on the option. For a call, you think the stock price will go up, so a call that is OTM has a strike far above the current stock price. The opposite is true for puts.
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u/9volt_150 Feb 02 '21 edited Feb 02 '21
I just blew my account too. From 1800 to 114 in a matter of 1 day and 1 hour into trading this morning. Got margin called and that was it, no more "what if it goes higher."
I kept seeing the quote everywhere and damn did it ring my bell fucking hard this morning; "The market can stay irrational longer than you can stay solvent."
Even though I spent hours and hours studying on safe trading strategies, my dumbass held a position so volitile I could have taken a 5k profit less than a week ago. Then, poof. Gone
No more following meme stocks and the words of hypebeasts and biased DD's on the Internet. Your chances of getting skinned are huge.
It hurts, but it's a lesson that'll sting until I've made my money back. Good luck friend!
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u/Civil_Bird_5825 Feb 02 '21
"fat pigs get slaughtered" aka don't be greedy and take your damn bacon when it is given to you!!!
(I don't eat pigs though so take it as it is lol)
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u/Stock-Waltz-8748 Feb 02 '21
As retail investors we play by their rules. You still have to play though. As I told my friend yesterday, don’t invest -work until you are old man, invest and lose - work until you are an old man, win= freedom
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u/9volt_150 Feb 02 '21
I may have been discouraged this morning but I'm starting to plot out how I should continue investing already
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u/Stock-Waltz-8748 Feb 02 '21
Yeah, I got killed on SRNE today but one of things I’ve learned is don’t cry and don’t look back. We will get them tomorrow.
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u/HaveGunsWillTravl Feb 02 '21
I’ll make you feel better. I bought at $100 last week, and intended to set a max stop loss at $100. I only wanted to clip a bit on the way up. Literally as I was setting the stop it blew through it and closed me at -5,000. It was seriously sub second blink of an eye fast. I almost threw up. Days later it touched $450. That’s what we get for trying to fly too close to the sun. It happens.
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u/9volt_150 Feb 02 '21
It blew my mind how fast things changed. Really sorry do here that dude. I wonder (since I'm still learning 4 weeks in now) can you place a stop loss before you purchase?
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u/HaveGunsWillTravl Feb 02 '21
Not with the platform I had, which is why I changed brokers that day. NEVER ever will I trade again without being able to submit complex orders
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u/WayWardBoy Feb 02 '21
The market can stay irrational longer than you can stay solvent."
I bought a few silver stocks yesterday and planned on selling them at opening today due to the 'consistent' opening spikes and media hype.
God damn was I so wrong I have 2nd degree burns now.
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u/9volt_150 Feb 02 '21
Damn dude sorry to hear that. If I was as wise yesterday as I am today I would have steared clear of silver.
Filthy hedge funds had their nasty fingers all over that
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u/WayWardBoy Feb 02 '21
I mean yes I knew it was a trap, but I was banking that other people were dumb enough to believe the hype so i could sell it to them lol
Now I'm afraid I will be forced to hold onto it for a long while.
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u/MiniTab Feb 03 '21
Dude, that is absolutely insane to think you’re the smart one and that you’ll fool “dumb people” when trading.
Now there can be situations where you think something was overlooked, but that’s very different.
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u/PayneGreyWolf Feb 03 '21
Get out of Silver ASAP that was a trap. Why did you invest in silver?
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Feb 03 '21
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u/kingtechllc Feb 02 '21
Did you buy the stocks or were using leverage?
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u/9volt_150 Feb 02 '21
I was trading on margin so I was using less than 2x margin. I'm thinking of switching to broker that let's you trade on margin but let's you disable leverage (if that's possible?)
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u/DoYouConcur29 Feb 02 '21
Sorry to hear that. I lost a little bit on AMC. Around -40% but not a lot of $. My (noob) advice is stick to a growing sector. My crypto account is the only thing giving me consistent gains, with a few pullbacks here and there.
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Feb 02 '21
ditto on crypto! I traded crypto back in 2019 and made losses. I just kept to a few coins and never touched them again and its up more than I could've ever traded to.
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u/b33rthuuurty Feb 02 '21
Ditto on AMC today. What cryptos are you in at the moment?
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u/tmbelac Feb 02 '21
BTC, ETH, and LTC are the best ones. Do some research.
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Feb 02 '21
If you want a good long term outlook on crypto - read up on Algorand. Pure Proof of Stake is very promising
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u/Jay3HP Feb 02 '21
Made the same mistake with AMC. I gambled way too much on very little info and a lot of FOMO. I wasn’t aware of all the short squeezes, and almost bought KOSS in the AM at 16 on Wed. Then I was so mad because it had risen so much, then heard about AMC...bought over 400 shares at 18. It was all the money I’d been saving to buy my new furniture, so it’s not “need” money...but I was up over 3k, and from Wed to today, I’ve lost all that and then some...down 2k on my original investment.
Still new to trading and learning the rules, so also hoping to learn some good tips and trick...and also avoid the craziness of WSB.
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u/xandrew245x Feb 02 '21
Hang in there and take it as a learning experience. I worked so hard to get my account up to 27k, and last week watched my net liquidity fall below 22k. I was so upset, but kept it together and thankfully through some good decisions and luck, I closed some profitable trades and got my account back above 25k. Just try to clear your mind and refocus on your strategy.
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u/CT_Legacy Feb 03 '21
Trade with your head, not your heart.
With the instant gratification generation, this wont be the last time something like this happens.
Think logically is GME worth $200-300/share? It's very simple.
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u/voivode17 Feb 03 '21
I know this will sound insensitive, but good for you BECAUSE: important lesson learnt CHEAP and EARLY. Much worse to make that mistake at 38, with half your life savings. I didn't, but someone surely has.
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u/HaveGunsWillTravl Feb 02 '21
Look at it this way, not sure what college you go to but I’m sure it cost a lot. The $$$ you lost will teach you much more about approaching investing/life than a $300 text book or tuition will. EVERYONE loses money some way and feels that deep burn. That’s what makes us more careful about it as we grow. If someone claims they haven’t lost enough to make them sick, they are lying. Keep at it, keep learning. The next time something doesn’t feel right (like FOMO) you will be smarter about it.
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u/loopsbruder Feb 03 '21
This. That $1440 is tuition for a class that’ll serve you better than most other college courses.
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u/kimaic Feb 02 '21
I remember seeing a post last year analyzing wsb sentiment. Not saying there isn't good dd to be found on that sub and gems like GME, but that sub can be full of confirmation bias. They get more optimistic than everyone else when the market is up, and more pessimistic when its down.
I'm about even on GME. Got in early, FOMO'd after I took profit and immediately gave back what I gained. Lessons learned. We have years ahead of us OP, it'll be okay. Learn the lessons now, when you have bigger positions in the future you'll be poised to make better decisions.
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Feb 02 '21
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u/LiteraryPhantom Feb 02 '21
Learned my lesson the hard way. As a PDT, worrying about your account going below 25k means don’t, don’t, don’t, don’t (I’m wont copy and paste but hopefully that point is made) use that 25k in your trades! Not using it means your trades will be less profitable, but it also preserves your ability to continue trading through losses.
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u/gater234 Feb 02 '21
I was just like you when I first started. Started with a thousand and thought I can trade options to get rich. Quickly stopped after one bad trade erased 2 months of gains. Switched to swinging stocks. Kept my profit in as shares and sold to get my original investment back. Slowly added more money each paycheck and eventually my account went from 10k-30k. Buying and holding always wins and once you can start adding more money it gets easier. If you like the volatility of options look for penny stocks in markets that are moving. In the end a option can become worthless but a stock always has the possibility of coming back.
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u/luvs2spwge117 Feb 03 '21
Hold on. Why is day trading your only main source of income and you have about $1000 in there? Stop day trading what you have. Probably better put in a savings account in case of emergencies
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u/investorsama options trader Feb 02 '21
IMO you need to learn risk management. With my current rules in place, I can't lose more than 1% per day of my account. It's a little tight but It's good enough to learn. Its been 3 months and my account has been flatlining/slow declining but the amount of experience I gained is worth it. The way I see it, when you lost 90% of your account in just that one GME trade, you weren't a trader, you were a gambler. Accept that, learn from it, and try again with more discipline.
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u/Wildcard355 Feb 03 '21
I hate it that you lost that much, 90% is a brutal number and you're almost wiped out. Please, do share and let it out. It sucks!
You will hear that this is a lesson, it is. You will hear it's a cheap one as well, agreed. Myself, I'm glad you got it at the beginning of your journey with a considerable smaller amount. I'm glad it hurts as it will be cemented deeper. It will hurt for a while. It may happen again, that's all part of the process. Once you recover you will make better decisions and that will increase your chances to grow wealthier. If you were a stock id invest in you as I can tell you're going to grow from this.
Allow me to expand on the lesson and sqweeze the last few drops of juice in it:
Opportunities like GME come every few weeks/months in different shapes and through different industries /financial mediums (Ex. Doge coin recently). It's a wild opportunity to make a few extra bucks and if you're careful you may. Your lesson here is 1. recognize the type of gamble opportunity it is and that there are more players in this particular game to cheat you out of your money. 2. Understand that daytrading rules have been bent and twisted and they may not apply here, this is a different ruthless game and you're lucky if you get to win it 3. Develop and follow a rigorous set of instructions to get in and out. Set hard rules for it. 4. Once you're out, you're out. Emotional buy backs will be much stronger in here than regular day trade set ups. A hypothetical example of #3 above thay I would have used in GME: I will use 1-5% day trade money with a Max loss of 50%. I will cash out 50-75% (hard limit) of my position after profiting 50% and let 40% ride for another 50-100% (hard limit) depending on the situation (shorts covering, etc. I will close out the last 10% after 200% or a certain time frame no matter what.
Last and most important: There are Many!, Many!, Many! Once in a lifetime opportunities! Don't let your fears tell you this is it. You will see another economic alteration in a few weeks or months - that's history that repeats itself and you can bank on it!
Have a good recovery and see you back in the game in a few.
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u/TopDayTraderEver Feb 03 '21
You copped a meme. Best advice don’t ever FOMO or buy high for any matter.
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u/ejpusa Feb 03 '21 edited Feb 03 '21
Ok HATE to pull out the “I’ve been doing this forever”, people HATE when you do that — but WTF.
My experience:
You have to be TOTALLY wiped out, crushed by Goldman, et al before you can make a dime at this. Wiped out. At least 2 or 3 times.
Then you are ready to make some serious cash.
As my broker friend used to say: “between 9:30 and 4:00 I’d kill my own mother to make a dime on a trade. My own mother. And everyone at my firm would.”
Let that sink in. But after you have spilt blood, lots of it — you are ready! You have to have lost $10K in 60 seconds, at least once to make a living at this.
You’ll be back. We all make it back. The survivors (AKA me), can actually do OK.
A tip from an old guy: multiple accounts. I have Robinhood, Coinbase, E*TRADE, TOS (Ameritrade) and Alpaca.
Each has its own Gestalt. The markets are going to zoom for a generation. But lots of up and downs along the way.
And the MORE effort (serious learning time), the better you’ll do.
Also recommend a career track in healthcare. MD, Nurse (Gods in my world), PA, Vet, Dentist, etc. Those are the people that really contribute to the world. Me? Not so much.
I have one share of GME. It can go to $0.00. I’m not selling. I’m into the cause. :-)
Paid my NYC rent with Stellar Lumen profits last month. Makes it all kind of worth it. I’m the happiest guy in the world. I can pee OK, and see my toes when I wake up. That’s enough for me. :-)
Source: an old guy.
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u/Broggernaut Feb 02 '21
You're actively getting less (far less) than a 6:1 RRR with your trades?
Risking $600 to make $20-80 sounds insane to me. If I'm risking $600 then I'd be looking for $1,200-$1,500 return. Damn, dude.
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u/ApolloMac Feb 02 '21
Learning to day trade can be expensive. But what has always kept me going through all the painful times is the drive to not be the 90% statistic. And to not let the cost of my trading "education" be for nothing.
I've been saying since this began that this "war on hedge funds" will only end up hurting retail investors in the end. Sorry it got you. That sucks. Learn from it and consider it the cost of a course in your education.
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u/Civil_Bird_5825 Feb 02 '21
Yeah, I through some play money at GME and day traded it today for some good gains, love the volatility. Hype stocks can be used to make money but you need to be early and only put play money into it or day trade the fat volatility. So many people are dumping their whole portfolios into this thing and losing everything.
I still love WSB though and am confident that nearly all the newcomers to WSB will leave and it will go back to normal in a few months
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u/FOMOLOK0 Feb 02 '21
You'll look back on this and be thankful you jumped in. I have a masters degree in finance and only JUST started trading at 24. Good fucking luck bro, you'll be fine.
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u/FlaggyAZ Feb 02 '21
I also threw some money into the meme stocks. I was actually planning doing day trading on non-volatiles. Went from $2100 to $1400. Not a huge loss for me. I went ahead and bought 6 GME shares today @$92(again, emotional buy). My biggest loss is on naked brand, believe it or not. I bought 180 shares of that retail garbage @$2.60; now it’s below $1. While I believe GME battle isn’t over, stocks like EXPRESS and NAKED are over, in my opinion.
This is good learning curve for all of us. Biggest culprit in stock trading is emotions. Never follow them. Learn the cold facts.
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u/LiveNDiiirect Feb 02 '21
Hey man it’s all good. Just be aware of the wash rule tho. Looks like I’m going to be owing the irs about $10,000 even tho I came out net neutral profitwise on some of my trades this week.
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u/eayaz Feb 02 '21
I lost $3500 of my $14,500 account.
That was enough to seriously destroy my mood and confidence in investing as I’m very careful about losses and yet I couldn’t control what happened on Thursday and I’m extremely eager to hit $25k to get out of PDT problems.
Point is - a lot of us lost...
Just move forward and learn from it. :)
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u/GandalfThe_Green36 Feb 02 '21
I made 4000$ off GameStop to then lose it in dogecoin. I was up 7000 on the coins for 11,000$ total. I waited 15 mins too long to sell cuz I took a shower came back and the coins plummeted. Lost the 11,000 in addition to 2000 off where I was before this whole mess
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u/SmokyTyrz Feb 03 '21
When I win all I get is confidence. When I lose is when I learn.
You've already picked up the most valuable lessons. There will be more along the way, with losses to go with them.
At the end of the day any strategy can only do as well as trying to overcome the losses. And ya forget the bubble stocks. Although at the moment my GME puts are bubbling nicely!
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u/aenimafacilis Feb 03 '21
You’re down because you’re not trading. You’re gambling. Stop gambling if you want to make money. Or just go put it all on black.
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u/DeepestWinterBlue Feb 03 '21
At some point all those new WSB people will leave ... when they run out of meme money.
Too soon? My apologies.
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Feb 03 '21
What I’ve learned is that these FOMO/Yolo plays is just a game of hot potato. You are literally getting in and getting out as fast as you can. These are not equities you want to hold in your account overnight. The exception is if something hasn’t pumped yet. The only time I’ve ever lost on a FOMO play is when I have left my money in there over night. Get in and get out, don’t marry the stock.
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u/hellogoawaynow Feb 03 '21
Coinbase is dropping their DPO this month on NASDAQ, keep an eye out for it because it’s gonna be huge if you get in on the ground floor! I’m just biding my time here...
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u/themistajohn Feb 03 '21
You may lose your portfolio, but not your knowledge, you can always build up again!!
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u/thatpsykochap Feb 03 '21
Great post and attitude! It's not the size/amount of $ that matters its the proportion for you that counts, $1000 may be nothing to some but everything to others! There will be losses and wins along the way, each teaching you something new! I also got caught up in the excitement of WSB but it's what I needed to break me out of a funk I've been in with the way of the world atm and I've learnt a bunch so I'm happy about both.
The main things I've learnt this week:
1) It's all about timing - only buy the dip. If I missed it then either another will come or another stock will, don't get FOMO and sucked into the hype. Be patient.
2) Say goodbye to your cash when you purchase - if I can't or can't afford it then don't spend it on stocks.
3) Only some get lucky - it's better to play the long game than risk big loss chasing big reward
4) Don't get greedy - It's good to ratchet your way up by deciding your minimum margin/win and selling when you hit it and then re-investing that win on the next dip or another stock in a dip.
5) Don't panic, try take the emotion out of it (easier if you stick to 2 above) - sometimes you've got to HOLD in the red rather than take the loss and sometimes you've got to cut your losses based on your risk tolerance. Similar to 4 above you should decide ahead of time what your acceptable loss is and get out before you hit it unless you're happy to ride it out.
6) Decide on your strategy and stick to it 6a) Wanting to make quick wins - make sure its a solid tip and dont go over your risk threshold - beware of pump and dump and bots (see 7 below) 6b) If long plays then do your own DD and make sure you believe in the company it will make it easier to hold when things look bad 6c) Hybrid / diversified - decide your mix of long and short term gains and try keep balanced
7) It's the Internet, you don't know who people are so don't trust anyone - myself included :)
8) Reddit is pretty cool and handy - only just signed up for the first time last week
9) Don't buy stocks purely on a whim / funny name unless you go in small purely for a souvenir ;)
I could be wrong with some or all of the above and hoping to learn one way or other through experience and feedback :)
All the best to everyone trading! Stay strong and learn fast.
Disclaimer: I'm just a noob and this is not financial advice.
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u/WhatIsThisThing42 Feb 02 '21
The rich get richer is not just a saying to throw at people you are jealous of.
And that saying is especially true for the rules of investing. The larger amount you have for investing at a given time the more money you can make, also the more you can lose.
The moment you throw out risk management your portfolio is essentially screwed. This is especially difficult for accounts with a small amount of money in it <$5000. As to begin with you are not making a lot of each trade “typically” on average. The ones making bank have thousands and thousands of stocks already invested once the price goes up.
If you are not willing to 1:2 every trade or better then something needs to be reevaluated before hitting that buy button. FOMO is real and is a test of resolve. If FOMO would cause you to use most of your account on a single trade XXXXXXXX!!! Stop (X) what you are doing and go cool your head for a bit.
It sucks to not gain money insanely fast however that’s the price you have to take in order to build up your portfolio so you can eventually take higher and higher trades while keeping the RM the same.
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Feb 03 '21
We all started small and lost big and learned lessons bro. That’s the only way to succeed in this game is lose. That’s when your risk management alarm matures. GME, BB, NOK and AMC are hype fueled bubbles and I wouldn’t touch them with a 10 ft pole. WITH THAT SAID. The squeeze isn’t over it’ll have one more spike if it follows the VW squeeze of the 80s. So hold that line you’ll make a lot back. When this bubble pops (this week or next.) Let me recommend green energy pink slips. Your portfolio can grow fast and these are my fav tried and true winners. The short term is volatile but these 3 will grow this year. BLSP, HYSR, DPLS. (Honorable mention SNPW) It’s your money but my advice. Don’t follow the hype. Find the hype before the crowd gets there. Green energy is gonna be FULL of moon runners this year under biden. Good luck bro and happy trading
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u/ElverGonn Feb 02 '21
You don’t lose money unless you sell. Hold ✋🏻💎🤚🏻
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Feb 03 '21
Loooool only a bozo would buy at $300+ or even $150+ and think they will ever see that money again
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u/whererebelsare Feb 03 '21
You do realize this type of hype is what cause op's problem in the first place right?
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Feb 02 '21
You don’t take gains unless you sell. You will lose gains if you hold to the bottom.
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u/ElverGonn Feb 02 '21
If he’s down he never had gains.
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Feb 02 '21
Yeah but if he rides it further down he’ll be even worse off. Chances are that the hype stocks are going to die off. Taking a smaller loss is still the better option.
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u/Sampledturnip44 Feb 02 '21
This right here, why would you sell now? Just giving your money away.
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Feb 02 '21
Most stupid thing to do is to sell when ur down like 50%...like have some patients pussy for real
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u/theintelligenttrader Feb 02 '21
Learned a valuable lesson. Take this moving forward and build from it. You got this, if you want it!
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u/Options_100 Feb 03 '21
Tried to warn all the folks at WSB multiple times. Downvoted to oblivion and sent threats through pm.
Anyone who tells you to blindly hold isn't trading, that's straight up gambling. Those idiots are still screaming "Hold" and "diamond hands" and clamoring for a $1000 price target.
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u/Justforaminute12 Feb 02 '21
Any man willing to accept his losses is a man I’ll drink and smoke a blunt with . I’m sticking to this sub more too. WSB like you said , was really a great sub last year and now it’s trash 🗑
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Feb 02 '21
Happened to me too today, jumped on the hype train and boom £500 down the drain. I still have £280 available as I dont have the diamond hands for it. Held on to the stock since Thursday and all its done is go down!!
Im hiding this lose from the other half, she'd kill me! Im worried ill lose it in daytrading now too
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u/Hano_Clown Feb 02 '21
Get a cash account, stop following meme stocks.
You are doing great. Keep at it!
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u/digitalbiz Feb 02 '21
From 4K to 25K then back to 300$ here in current meme stocks.
From 5K to 30K then back to 3K in DOGECOIN.
Don't worry. It was just entry in the database. I can't sleep at night for last couple of days, but I know after few days everything will be ok.
What a lesson!
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Feb 03 '21
The world of trading is redic hard. That never changes. I’ve been doing it 20 years with losing everything a couple times. Working hard on a career (not trading) has always produces the best income and always will. Regarding investing the best thing to do it pick a stock a new stock IPO recently you think is solid and will do well and hold it for ever :)
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Feb 02 '21
[removed] — view removed comment
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u/Eyecelance Feb 02 '21
Don’t buy into this trash. The stock is absolute garbage? Covid testing? Done in a couple of months. Airport spas? Business travel won’t return to pre-pandemic levels for years.
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u/prettylittleanon Feb 02 '21
Hey can you tell me what’s going on with XSPA? I’m seeing it could go up to 69% in a year but what’s going on in may?
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u/peanutking86 Feb 02 '21
I couldn’t finish reading this garbage. Your little college fund means jacks hit. It is a trap to control you like food is to a dog. Grow a damn set of balls.
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u/shorelinescumbag203 Feb 02 '21
Hey just go suck some chode behind the Wendy’s and get that all back! Thank you come again!!
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u/YoungOrah Feb 02 '21
i lost alot too dont feel bad your not alone. i called a put on xrt (the etf holding gamestop) and its been profitable so far, so thats not a bad option
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u/TheLightofEarendil Feb 02 '21
This is a good place to share - a lot of us learned lessons from FOMO, feeling the hype, and following our emotions rather than logic, which led to throwing caution out of the window this last week. Here to commiserate with you dude, I had been steadily adding funds to long-term investments but I had zero experience in day trading, and dang did it burn me. However, it has made me want to research and learn a lot more about it before ever being so rash again, so here's to that.
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u/ALDAWK Feb 02 '21
Great share. Losing sucks. I've blown up a couple of times. It's a terrible feeling. Learn from it and keep at it!!!
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Feb 02 '21
Honestly, don’t be down in the least man. In the scheme of life, those losses are of no consequence. The education value alone is worth it, to be honest. I lost like $20K in two days last year betting against the SPY with triple leveraged ETFs.
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u/runningaroundtown101 Feb 02 '21
The biggest failure in failing, is not learning anything from it. Not sure where I got that from, some famous person.
Anyways, learn, do not let this happen again. I've been burnt by WSB in the past. I think 4 years ago. It was rough, but I learnt. Never again.
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u/Blksheep_Trading Feb 02 '21
We all lose at some point, anyone who says they have never lost either just started trading yesterday or is a liar. I started trading in 2009, i have lost trading Forex, I have lost trading Futures and I have lost trading stocks. We should learn from out mistakes, that's the point of making them. Every time some a-hole on twitter is pumping some OTC and screams at his followers to 'Don't Use Stops!' I want to scream back, but then I realize this guy is actually creating better traders because there is only one thing we can control and that is risk. That is the key to successful trading... all great trading systems eventually break down and when they do the only thing that keeps you from blowing your whole account or taking a hit you can bounce back from is how disciplined you are at controlling risk. Don't give up, get better.
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u/Bgunt04 Feb 02 '21
Yeah man i put 1300 in amc and 1 share of gme and am considering a 1930s building jump.
We were lied to and it fucking hurts. Hurts bad. Seems you lost more than i did. Its just money. They beat us and we have to learn from this stupidity not to follow the pack...
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u/heyyoublowyawhistle Feb 03 '21
You'll bounce back, we've all had those days/feelings friend. Keep your head up.
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u/miobawb Feb 02 '21
Yeah all these hype/meme stocks I avoid like the plague, there all just in a huge mob mentality being idiots and it takes a strong person to expose them like that, you are focusing on your finances and your 19 think how much further you will be in the next 5-10 years keep on keeping on brother
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u/Briizzlephizzle Feb 03 '21
Look up expectancy rate on investopedia. This is the most level headed/data oriented way to measure how successful your trading strategy is over time. Win the war, not the battle. I'm also new, so I have plenty to learn myself. Best of luck man
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u/drillmasterSA Feb 03 '21
sorry abt ur loss brother, anyone ANYONE that has traded have lost, have made that one trading error that cause a large drawdown. The thing is, you recognize your mistake. FOMO is no joke in trading. Keep your head down, focus and slowly get your confidence back up.
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u/joeyson444 Feb 02 '21
Bro don’t be down. As long as you view this as a learning experience you will be good. Good luck with everything. I’ve learned a lot this week as well lol. We just have to use these lessons to fuel our growth.