It Always sucks having to describe a huge loss in the market but they are bound to happen!! Yesterday I placed a big trade in YVR. A couple of things happened that led up to such a big loss and I will describe them both here in the blog and in the YouTube Video above!
I got into YVR pre market and was actually in the profit for a whole there but decided to hold on to this position to avoid missing out on todays trading ( the PDT). What I did not consider was due to my overleveraging into this position, I basically opened up a major risk position! on the open the Stock Skyrocketed pushing my account into the negative – not a problem as I have sat through instances like that before – but in this situation I was in this position so heavy short that the broker decided I needed to liquidate that position and proceeded to do so. This left me with a negative trading day in the sum of -$2340. (OUCH). But the Broker did what they were supposed to do and in retrospect the trade was on me.
In the future I will not go so heavy into positions that are a little bit too risky for my account because that loss hurt. I lost 45% of my overall trading profits in this account in that trade and it will be a long Grind to get back to that point. All in All, its just another day in the markets and just a bump in the Road to 25K.