A Trader Over The Shoulders Podcast
A trader over the shoulder is all about professional insights and inspiring stories covering all aspects of trading.
Join Alex and Miki Katz, a professional trader of 15 years, for a new episode each week.
Episode #3 – Join us in this Episode where Alex & Miki are joined by Saul, the Head Analyst for The5ers prop fund, as they dissect their biggest losses and talk about what they learned through their experience.
Watch EP 03 – Pro Traders Dissect Their Biggest Loss and How They Overcame It
Miki’s Biggest Loss
In this episode of “Trader Over the Shoulder,” Mickey, Saul, and the Alex discuss their biggest trading losses and what they learned from them. Mickey recounts his biggest loss, which occurred one year ago when he was trading the SPCE stock. Mickey, who had been trading for 15 years, lost a significant amount of money due to his inability to control his emotions and cut his losses.
Mickey’s trade started out well, with him making $2,000 in profit before the stock started to drop. Instead of closing out his position and taking a loss, he continued to average down and add to his position, hoping that the stock would rebound. However, the stock continued to drop, and he eventually ran out of buying power on his account. He lost $25,000 on the first day, and the losses continued to mount over the next two days.
Mickey’s biggest mistake was not cutting his losses when he realized that he was wrong. He admits that he was chasing the trade and letting his emotions get the best of him. He also acknowledges that he had become overconfident after trading successfully for 15 years, which led him to take risks that he wouldn’t have taken earlier in his career.
Miki’s Lesson
Mickey learned a valuable lesson from his biggest loss: always cut your losses and don’t let your emotions cloud your judgment. He advises traders to have a trading plan in place for every trade and to stick to it, even if it means taking a loss. He also recommends keeping a trading journal to track your trades and emotions and to review it regularly to identify patterns and mistakes.
Biggest Loss Aftermath
Mickey’s biggest loss was a painful but necessary lesson that all traders can learn from. By admitting his mistake and sharing his story, he hopes to help other traders avoid making the same errors and become more disciplined and successful in their trading careers.
From Loss to Profit
At the end of this video Miki shares insights on how to be profitable in trading. One of the things that helped him become profitable is deleting the Profit and Loss (PnL) from the platform, so he wouldn’t look at it for a week or a month. He believes that the money is the result of good execution of trades and deleting the PnL helps traders focus on the execution of trades rather than the money.
Other Mistakes in Trading
He warns about the dangers of emotions in trading, specifically the tendency to close a position too early when in good profits and holding on to losing positions because of fear of losing money. Overleveraging and not treating trading as a business are also two common mistakes that new traders make. Traders who trade more or take more risk than they should find it harder to take losses. Moreover, traders who see trading as a temporary thing and do not take it as a long-term career often have a short-term mindset that prevents them from making sound decisions. If traders treat trading as a business and take every decision seriously as they would in a partnership or a company, they are more likely to make informed decisions and take responsibility for their actions.
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