Wednesday, May 26, 2010

Worst trade of my life!!!

I just closed out my APKT position for the second largest loss on a single trade that I have ever taken in my life. I closed out the position for a net loss of about $720.00. Unfortunately, today greed got the better of me.

Months of profits up in smoke. What had seemed like it was going to be a record month for me turned out to be a record month indeed, but for all the wrong reasons. May will most defintely be my first losing month since last December. It is now the month of my largest loss on a single trade and the month that I concede that largest drawdown since I started back trading.

The reason for this was greed. Had I stuck with the two contracts from yesterday and not added to the position beyond by usual risk limit, things would not have been so bad. However, images of thousands of dollars in profits got the better of me and I added recklessly to my position. Not only did I do this but I also failed to exit immediately at the stop out point $26.50. Instead I was hoping for a pullback but only ended up exiting at a price much nearer $26.00 as opposed to $26.50.

Now I have the added burden of recovering lost profits before I can once again once my account into new high ground. Such is the life of a trader when you get too greedy. Guess this is just another slap in the face reminding me that I need to be discipline especially in a correction!

Another bump in my road yet I will survive and move on.

None the less, good luck and good trading!

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