$20k to $300

Submitted by JDmexican_92 t3_z93cgi in wallstreetbets

Looks like it's my turn to take a break. Had $20k in my account by end of October only to lose $10k in puts on the last rate hike announcement meeting. Turns out if I had held, I would have been up $65k by the end of it, so I've spent plenty of time kicking myself for that one.

Today I lost the remaining $10k after waiting until the ridiculous spike today and bought some puts. Doubled down several times and now it looks like I'm broke. Time to take a long break away from the markets. Hopefully this loss porn satisfies some of you other degenerates!

https://imgur.com/a/gVamclu

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Comments

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Quick_Rent_Now t1_iyerg1p wrote

Sorry for your loss bro. It's the casino where the house always win in the end.

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JDmexican_92 OP t1_iyesma0 wrote

Seriously. I couldn't believe it last time, before the meeting, it launched up, and during all the negative news, it kept rising. Even when it finally dropped down, option values refused to go up, and I sold for the loss so I would at least have still $10k incase they expired. Only for it to finally drop way past my strike price after I sold and would have put me at around $65-70k.

Today's action felt like a repeat, and I even waited until the first couple spikes up before buying. It always feels like the markets are just here to shake us all down. It definitely takes a toll on one's sanity

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f3dya t1_iyeyzha wrote

What pisses me off is that he did not say anything new: anything! This rally is really irrational….

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Background_Sink6986 t1_iyfdm4g wrote

Not like I faired much better, but I would 100% suggest listening to the call. Last FOMC jp was incredibly hawkish so I didn't believe in the pump during the press conference. Today, he was quite dovish. I had put everything into puts before the meeting so I lost a lot, but pivoted to calls before SPY broke 400

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ShroomingMantis t1_iyet7rn wrote

I learned to stop trying to call tops and to leave losses small when the top doesn't wanna come in for you.. instead of opening up stops for exhaustion...you blew up due to the age old adage of, "markets can remain irrational longer than you can remain solvent"

Better to cut the loss before its too bad, and re enter on what looks like to be the backside with a more defined risk instead of hold through the move.

We live and learn. I lost 25k off similar events

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JDmexican_92 OP t1_iyeu2f4 wrote

Very true about the irrational/solvent issue.

But on the other point, I have cut losses early only for markets to reverse, and held longer than I should have only for the stocks to just continue dropping to oblivion. Doesn't matter if it's blue chips, growth stock, or etfs. It keeps hitting me in the worst ways. Definitely an irrational market.

I imagine if I were to buy in now with the bullish sentiment, some new bad news would come out to kill profits

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ShroomingMantis t1_iyev4dj wrote

Thats why you have to remain consistent in what you do , to allow the irrationality of the markets to work out in your favor.. if you're buying floors, and you just got stopped out of the last 3, you don't switch to shorting downtrend, you keep buying floors because all those shorts printing are going to sooner than later cover and reverse the momentum, you already missed the move, now you're early to the next one, but it'll come.. for example.

The trick is to trade something consistently repeatable, and manage loss on the occasions when price doesn't play out the way your trade calls for, because it will, because the market is stupid and inefficient sometimes. Its not our job to try and control that part.

I'm gonna guess, either you had no technical analysis on your trade, or your 10k loss could have been a $300 loss, but you stubbornly ignored the chart saying it wasn't time to go down yet. Again, I'm speaking from the heart and my experience in hopes to help you find where the next step forward lies. 🙏

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JDmexican_92 OP t1_iyexi5g wrote

I was mostly basing it off what I was hearing from the meeting today and how J Powell was saying that they weren't looking to slow down yet because they've seen before what early easement does. How they will remain persistent and how it looks like inflation isn't quite under control to their liking, and definitely felt like bearish sentiment. Plus the massive spikes occurring before the meeting even started on top of more spikes as he was making the statements, it just felt completely illogical that the prices were going so parabolic. So I would buy more each time, especially since this exact scenario occurred last time. Only it didn't crash the same way after the meeting concluded.

Now I'm just gonna need to sit out for a long while until I can save some money on the side to start putting back into my account. By then, who knows how the markets will have changed. I guess I'll just be an observer in the meantime.

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ShroomingMantis t1_iyey85r wrote

Ya betting on Fundemental catalyst events is one of your highest risk scenarios if you aren't capping your risk tight, arbitrarily, increasing the chance of taking that loss by alot.

My advice, homie, is to hop in a simulator while you save money, and practice building a legit system that protects your capital and still offers upside.

Ik it's gonna take a long time to fully process the losses, but don't beat yourself up. Its a common mistake that good traders can make when they aren't fully aware. Most ppl who short, learn this lesson this exact way, its just a matter of how much you pay up.

Good luck dude, don't give up on yourself, no matter what.

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Abject_Resolution t1_iyeu111 wrote

I did the same thing. I tripled down. No more Christmas for me.

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JDmexican_92 OP t1_iyeu977 wrote

Same here. Luckily I bought gifts already for close family. But now I'm on full budget mode. I won't be able to afford anymore spending for a long while after this.

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Vortex-018 t1_iyf0kr5 wrote

Same thing with me, but instead of 20k it was 12k to like 600 bucks. No lesson comes free in life, so be it.

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Vortex-018 t1_iyf14s9 wrote

It has left me feeling kinda vulnerable I'm not gonna lie. But it is what it is broski.

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JDmexican_92 OP t1_iyfbhfp wrote

I know exactly how you feel. The older I get, the worse the loss feels, because it just seems like on top of the actual loss, I have less time to work with.

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jiantoi t1_iyf3x9j wrote

You'll bounce back next time you return

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MorePlease1390 t1_iyer7h0 wrote

Good plays. Next time let me know ahead of time what you plan to do so I know when shit's going sour.

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JDmexican_92 OP t1_iyersrt wrote

Both times was on QQQ. Honestly my next move would have probably been on Dec. 14th for the next rate hike meeting. Probably $1k in call options half an hour before the meeting because it keeps jumping before each meeting lately.

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Skrotum t1_iyeuarx wrote

Maybe do the opposite this time

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JDmexican_92 OP t1_iyew1nw wrote

Calls would be the opposite this time around since I bought puts the past couple times. Technically it would have worked the first had I held them until near the end of the day. This time it seems calls were the better choice and my puts were fucked. But I really don't have any money anymore except for about $300. And I'm now in full budget mode after this. I can't afford to lose anything big past what I've already lost.

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Skrotum t1_iyewno3 wrote

You lost $20,000 in short term plays and have $300 left?!?! You need to get off this subreddit

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JDmexican_92 OP t1_iyeye6y wrote

To be fair, I made $40k in short term plays originally. After taxes, I took out about about $15k to keep with my savings and left another $13k in my account to keep trading and brought it up to $20k this year only to just lose it. I still have $35k in my bank, but that's money not to be touched.

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Think-Dig-3425 t1_iyezprh wrote

Word to wise, wire your broker 35k and go back in on puts lol

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JDmexican_92 OP t1_iyf1zfn wrote

I'm gonna laugh if next rate hike they do 75 points and completely reverse back in the opposite direction. I likely won't be trading next one, but I'll monitor it just to see how the markets react. I swear the markets just rally on nothing/bad news lately only to come back down after puts get fucked.

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Spare-Competition-91 t1_iyfdiqu wrote

Sucks man, Sorry to see it. I lost $700K back in 2005 and I was poor before that. I was poor again. Live and learn and get a chance to play again.

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Beautiful_Cookie_639 t1_iyexlv8 wrote

Just imagine if you had put that 10k into calls. Or don't. I got away with a small profit today and even I can't stand to look at the return on calls. Because I'm so mad I didn't have any.

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VenomInfusion t1_iyewh4h wrote

Sorry for your loss OP. I hope u make it back tenfold.

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JDmexican_92 OP t1_iyexnna wrote

Much appreciated! I need to save up in the meantime, maybe in several months or a year I'll be able to come back and start again. Best of luck to you as well!

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Observ1 t1_iyf1qqf wrote

That is like one of my afternoons.

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am-well t1_iyf9tus wrote

Fortunately for you the reason you lost that money today is because JPow confirmed that dollars have less value.

Ie You didn't lose as mush as it feels like you did.

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Rhyndir t1_iyfd05d wrote

Could’ve just bought a straddle on both of those plays and you would’ve made a shit ton of money.

You don’t need to get the direction right with those, you just need the price to go up or down a lot.

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JDmexican_92 OP t1_iyfdckx wrote

True, but honestly, the massive rally just felt artificial and unreasonable. I'm actually surprised it held up the entire time even until after hours

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Amateratzu t1_iyf46hy wrote

Whats up eskimo brother.

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Xirxes1923 t1_iyf4dhc wrote

New to group, someone explain puts?

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SuspiciousWriter t1_iyf9e8l wrote

Puts are short for “puts money in your account” if you think the market is going up buy puts. Calls are short for “call my money back” buy calls if you think the market is going down 🙃

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JDmexican_92 OP t1_iyfc2ba wrote

Puts are options for if you think the markets are going down. It gives you the option to short the market, but only if the stock price is past your strike price you bought them for. Calls are the opposite for if you believe the markets are going up. There's also an added risk of degradation over time. You buy with an expiration date. Could be a day/week/months/years but the closer to your expiration, the quicker it can degrade your option value. So basically, you're betting a stock price is going to go up/down past a specific price by a certain date.

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Alexa_is_a_mumu t1_iyf71wj wrote

Thank you for sharing. I am sure you can get 2 ropes for $5 dollars at the dollar store, just in case...jk jk.

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mycoalswin t1_iyfaeze wrote

Consider playing straddles/strangles next time to take out a lot of the guesswork on these days!

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JDmexican_92 OP t1_iyfb8zr wrote

I actually was planning on that until the first massive spike up. I was busy at work and couldn't play that. Was hoping to get $1000 on a put and call each, but my work delayed me from accessing my laptop until the meeting already started.

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fishheadsneak t1_iyf4r48 wrote

Good. Maybe try investing instead of gambling.

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