Kardec TraderFutures Trader. Creator of The Midas Touch. Mentor

Story of When I was UP $400k and Then LOST $500k

12 Apr 2023 · 1 min

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0:43

A trader (Kardec Trader) recounts being up $400k unrealized and later losing $500k, using the story to examine how aiming for fixed monetary targets (e.g., trying to make $500k or $1M) distorted decision-making. The speaker emphasizes that when the market shows signs of shifting, one should objectively reassess and exit positions instead of clinging to a pre-set profit goal. The episode is framed as a behavioral lesson about position management and trading psychology.

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When I saw three 400k unrealized profit. Now when I'm down 200, I'm like, oh, man, I was up 400. I should have taken the four. Now when I'm break even, oh, man, I should at least make money on this. Now when I'm down 100, well, I want to break even. You keep going down that rabbit hole and next thing you know, options you're expiring work. I was aiming for a number. I was trying to 8x to 10x that at 500. If you are in a position, don't try to aim to make a certain number. If I didn't have an aim on that number once I saw the market shift, I should have adjusted to that. I shouldn't have been, well, let me make a million dollars on this trade or let me make half a million on the trade. I would have looked at it, which is the way I look at it now from a more objective way. The market's shifting, I'm unsure what's going on, and the right thing for me to do right now is get out of my position, opposed to holding this position and trying to make that number or hit that target.