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Something to share about "Respect your risk"
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Like many people did that I learned how to respect my risk through the hard way.
I remember that was back in 2009, I was already trading for couple of years. Most I did was option play, Iron condor & butterfly. Why option? Cuz that's how I started when I first time started to learn how to trade. I was doing okay with it from the beginning. Like most people did, when you start making money there or here. Your desire and your subcoious start changing, you would start feeling like u r on the top of the mountain or something. u get this kind feeling especially when u r just started trading. So either did I! I let my willingness drove my mind, couldn't think objective even at that time I would think myself that I was thinking objectively. I started trying to pretend the market movement like I was a genius.
Sept 2009, I had a huge position for a vertical put spread on SPX, I thought market would go the way as I wished. The result: 75k lose! these are the money that I saved from by working in my Uncle's restaurant since high school & the saving from serve in the military. Today I still remember that day after market closed I was sitting in my room started crying. I cried hard & loud for hours.
That was the day, I truly starting understand the pain of losing, the pain of not respect your risk, and why does people commit sucided when they fail, that feeling you just can never using any words to explain, I don't care how good your language skill are. You just can't! That's why when people say I want to be a trader, I'm sorry my friend you have to learned how to lose and from both physically and emotionally. The majority of people would quite after they experience the pain of losing.
From that day I stopped trading for almost 6 months, took a vacation back to China to visit my relatives & childhood friends . Trying To not looking at charts and not listening anything about stock market, just tried to relax. How did I get back to trading. You know, remember when you were a kid in school doing a mathematic problem and you just think so hard and couldn't solve the problem, Then you put on the side and start doing something else may be listening the music or doing some other things. latter on suddenly a light ball went up in your head. You went back to the question solve in no time. So I guess by the time I went back to my trading desk. Mentally I was already on a different stage. How much can you lose is actually the only thing you can control in trading, anything else is random or by chances. So respect your risk like worship God. It is the only way to survive in this business.
Trading is the best way to know and understand yourself. Because no one can really hide anything in front of their own money. So be patience and be objective to yourself. It might gets ugly when you find out the truth about yourself. but it will help you a lot on the road of your life journey.
I remember that was back in 2009, I was already trading for couple of years. Most I did was option play, Iron condor & butterfly. Why option? Cuz that's how I started when I first time started to learn how to trade. I was doing okay with it from the beginning. Like most people did, when you start making money there or here. Your desire and your subcoious start changing, you would start feeling like u r on the top of the mountain or something. u get this kind feeling especially when u r just started trading. So either did I! I let my willingness drove my mind, couldn't think objective even at that time I would think myself that I was thinking objectively. I started trying to pretend the market movement like I was a genius.
Sept 2009, I had a huge position for a vertical put spread on SPX, I thought market would go the way as I wished. The result: 75k lose! these are the money that I saved from by working in my Uncle's restaurant since high school & the saving from serve in the military. Today I still remember that day after market closed I was sitting in my room started crying. I cried hard & loud for hours.
That was the day, I truly starting understand the pain of losing, the pain of not respect your risk, and why does people commit sucided when they fail, that feeling you just can never using any words to explain, I don't care how good your language skill are. You just can't! That's why when people say I want to be a trader, I'm sorry my friend you have to learned how to lose and from both physically and emotionally. The majority of people would quite after they experience the pain of losing.
From that day I stopped trading for almost 6 months, took a vacation back to China to visit my relatives & childhood friends . Trying To not looking at charts and not listening anything about stock market, just tried to relax. How did I get back to trading. You know, remember when you were a kid in school doing a mathematic problem and you just think so hard and couldn't solve the problem, Then you put on the side and start doing something else may be listening the music or doing some other things. latter on suddenly a light ball went up in your head. You went back to the question solve in no time. So I guess by the time I went back to my trading desk. Mentally I was already on a different stage. How much can you lose is actually the only thing you can control in trading, anything else is random or by chances. So respect your risk like worship God. It is the only way to survive in this business.
Trading is the best way to know and understand yourself. Because no one can really hide anything in front of their own money. So be patience and be objective to yourself. It might gets ugly when you find out the truth about yourself. but it will help you a lot on the road of your life journey.
