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Losing CFD long position

Discussion in 'Beginner's Lounge' started by Kelly, Sep 12, 2016.

  1. Kelly

    Kelly Member

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    How long will it take to get back up to where it was at the end of August (5570)?
    Weeks, Months, Years, Never?

    I'm starting to panic a bit now with this CFD position that I opened (buy) 2 weeks ago.
    Luckily I have the cash to pump into it to keep the position open. I assume that would be the smart thing to do yes?
     
  2. Klogg

    Klogg Well-Known Member

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    Re: XAO Banter Thread

    If you don't really know, then why are you risking your money?
     
  3. Triathlete

    Triathlete Keep it Simple..!

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    Re: XAO Banter Thread

    What was your exit position before you took the trade...????? ( how much were you willing to lose before closing your position)..????

    No one trade should get you into that position unless you have incorrect position sizing or you are way over leveraged.
     
  4. Kelly

    Kelly Member

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    Re: XAO Banter Thread

    Because gambling can be fun!
     
  5. tech/a

    tech/a No Ordinary Duck!

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    Re: XAO Banter Thread



    Hilarious.
     
  6. Porper

    Porper Ralph Nelson Elliott

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    Re: XAO Banter Thread

    May as well throw your money down the drain then because you won't win over the long term in this game.

    If you are serious about learning then do just that. Learn how to trade...then you can lose all your money. It will be even better fun.
     
  7. Kelly

    Kelly Member

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    Re: XAO Banter Thread

    Hi Triathlete, thanks for your reply.
    Yes I am way over leveraged for this trade, due to getting a false sense of security from all my previous winnings on it (long & short). Which were usually only open for a couple of days. Looks like I will be keeping this one open for a while.

    Currently at 47k loss (thought it would not fluctuate more than about 30k loss)

    "willing to loose" - well I originally had a 10k loss stop on it, but then I removed it! :-o

    I would like to keep it open for as long as I have to. What goes down must come up! (isn't that how it goes?! lol)

    Yes, yes, I know what I am! You really all don't need to tell me :). I did not see this continuous fall coming (who did exactly?)

    lol.jpg
     
  8. Porper

    Porper Ralph Nelson Elliott

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    Re: XAO Banter Thread

    Nobody can predict the markets or control profit. In fact, all you can control is how much you are prepared to lose. That's a great asset to have. Cut losses quickly and let profits run is an overused adage but basically it's correct.
     
  9. skc

    skc Well-Known Member

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    Re: XAO Banter Thread

    That's not how you should gamble with CFDs.

    If you bring $500 to the casino, decided that you will walk out if you lose that then it's just a bit of fun.

    If you go to the casino with 5 bank cards, 6 credit cards and a home equity loan, you are obviously just looking for trouble.

    Putting more money in the account because your gamble didn't come good sounds like a recipe for further losses.

    Good luck and act sensibly.
     
  10. CanOz

    CanOz Every day above ground is a stellar day!

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    Re: XAO Banter Thread

    My goodness, I nearly lost my breakfast when I saw that P/L....Kelly, you better get a hard exit in mind, volatility has returned and it's not bullish, the best you can HOPE for is a bounce in the US session as one in the European session is less likely. If we don't get a bounce in the US session then losses could be sustained for another Asian and European session, consider that in your RISK MANAGEMENT PLAN.
     
  11. Gringotts Bank

    Gringotts Bank Well-Known Member

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    Re: XAO Banter Thread

    Kelly, you sound to me like you have a lot of spare cash, and you're happy enough punting. That's your choice and there's absolutely nothing wrong with that if 47k is a small percentage of your net worth.

    Now I see you live in Dandenong. What's your decision? Will you close out the position or hold? If you hold I'd suggest selling the first green day.
     
  12. Toyota Lexcen

    Toyota Lexcen Well-Known Member

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    Re: XAO Banter Thread

    that 47K loss would be not to dissimilar to losses people are experiencing holding direct securities at the moment,

    at the time of the GFC people lost when gambling (holding securities), a few years on and its happening again with many wondering if a big crash is coming with the stand off in lifting interest rates
     
  13. qldfrog

    qldfrog Well-Known Member

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    Re: XAO Banter Thread

    or sad?
     
  14. Kelly

    Kelly Member

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    Re: XAO Banter Thread

    lol, and here I thought that would be an average or smallish loss for you serious educated traders!
    I'm serious, but not educated!

    I started CFD trading 7 weeks ago. 120 closed positions, 35% of the positions were at loss, 60k profit.
    I'm not sure if that can be attributed to pure luck or not, I don't use any of those 'funny' charts with indicators and butterflies or read any news, but I do have a very analytical mind, so maybe that has helped.
    With the 47k loss (on 1 bloody trade!), that makes my current position $13k profit.

    I am 'prepared' to loose around $50k (and was from the start).
    I'm not sure I'm rich (I actually live in Doveton! lol) but I'm very thrifty, I rarely spend money and I don't 'need' any more money. I have 3 investment properties that are already 70% paid off, but property is so BORING!

    With the position... I think I will wait a few days to decide what I'm going to do.
     
  15. Gringotts Bank

    Gringotts Bank Well-Known Member

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    Re: XAO Banter Thread

    Nope. Most of us retail traders would bet around the 5-20k mark per stock. Some ASF members bet big, but they're unlikely to say so here. Some of them are retail, others are trading OPM.
     
  16. CanOz

    CanOz Every day above ground is a stellar day!

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    Re: XAO Banter Thread

    Kelly, we all have a story of our first catastrophic loss. Mine came as a copper cfd after a great year in equities. My loss was 25% of my account value in less than an hour. Similar to you, I had no exit plan. It ended up being a pain level and thank goodness it was a low pain threshold. Copper kept rising after I covered my short, so at least I did the right thing by getting out...all be it too late. Make a plan and stick with it, you're still playing with profits and can have enough left before it's too late to use when you reevaluate. Regardless of your method for analysis or not....all successful traders have a risk management plan, I suggest you get one, soon!
     
  17. cynic

    cynic Well-Known Member

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    Re: XAO Banter Thread

    Correct me if mistaken Kelly, but does that position move by $1,500 per point of movement in the ASX200?
     
  18. tech/a

    tech/a No Ordinary Duck!

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    Re: XAO Banter Thread

    I think I found your chart!

    Loss 1.png


    Loss.png

    Your not alone---very common.
     
  19. McLovin

    McLovin Well-Known Member

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    Re: XAO Banter Thread

    I think it's $150.
     
  20. cynic

    cynic Well-Known Member

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    Re: XAO Banter Thread

    Thanks Mclovin.

    (I should have realised my error from the other figures, the 1500 contracts bit threw me.)
     
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