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Thursday 24 January 2008

Withdrawing funds

Lets review and summarize the 1,000's of comments I've been reading all over the internet-

-Your a gambler
-Your an idiot
-You need to quit
-You should have never held over the weekend
-Everyone new they were going to do a surprise interest rate cut
-You should have expected YM to go limit offer down -650 pts
-You should have diversified
-I've made the same mistakes
-30k isn't even that much money
-I know some people that have lost even more
-You should get a real job
-Where's your stop
-I hope you bounce back

The list goes on,,,

Position sizing has always been my problem. A recent commenter said the 1k swings are to big for me to handle emotionally, and he is right. I was at all time highs in my account last week after having a personal best day of making over 10k in a day. And then I took a gamble trade over the weekend and a blackswan event occurred and I lost almost everything. How can you come back and trade? You didn't learn your lesson in just a day? Your still trading too much leverage?

I've read the comments and I realize my mistakes. The only way for me to recover is to take action and start correcting my problems. As much as I hate it, I'm withdrawing more than half of what I have left in my account today. I feel like I will be handicapping my trading ability doing so, but it is the only way I will learn. By doing so, I will have reduced my leverage available, and my P/L swings will be much smaller. There is a much higher probability of me losing my whole account as it gets smaller, but I was able to turn 7k into 40k in 6 months last year, so I do have a chance at making money with a small account.

I could make more videos of me blowing up my account, but the couple dollars in ad revenue isn't worth losing thousands of dollars and being laughed at by hundreds of thousands of people on the internet.

Thank you for visiting.

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