One Trader Started The Day With $77,000 In His Account; By The End He Owed $9 Million

so many comments showing people obviously never even read the story

NotAtrader

May 8, 2020 10:11pm

Quoting Marcieny

Disliked

I'm glad I predicted the fall and stayed out .... nothing better than negotiating when things are calm ... I hate negotiating movements that I don't like. "You never know how far it can fall when the number 0 is broken."

Ignored

Why didn’t you sell since you predicted the fall?

May 9, 2020 10:07am

Quoting Erebus

Disliked

so many comments showing people obviously never even read the story

Ignored

Classic dumpfos yes

It's unfortunate , but in the last 20 years Sheeple has become 20 times dumber.

When I was young, I used electric oven with 5 page manual. .. 3 pages how to disassemble 😲👏👏

Today's morons use a water-bottle with 15 page guidance

When I was little I never saw A THERMOMETER coming with a warning "don't put in anus and definitely don't put in mouth after that"

I weep for humanity

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afevir

May 9, 2020 8:15am — Edited

effectively there was only the option to lose, that saved his life

And the big question: what would have happened if the oil had remained at 1 dollar without going down to negative to end the contract at 20 dollars?

And another one, did it really take 5 days to update the software in IB?

ww3361

May 9, 2020 3:47am

The moral of the story is open an IB account as they like to back stop customers' losses

Chiqmagnet

May 8, 2020 5:00pm

How the hell does he buy 212 futures contracts with only $77K in his account?

auricforecas

May 9, 2020 3:58am

This is exact reason why "neg balance protection" is very important to me... Some argue(d) that there is SL/margin-call/stop-out but still, in (flash) crashes, no liquidity etc... it is extremely important to have that extra safety net... Or at least to trade over a comp etc... with good "veil"... just in case etc

May 9, 2020 10:00am

Quoting Chiqmagnet

Disliked

How the hell does he buy 212 futures contracts with only $77K in his account?

Ignored

Read the article dumpfo

And this :

oil futures (or any other futures) are not there to trade and become rich.
They are for producers to hedge their sell price and for large consumers like airlines to hedge their buy price.
If you think you are in "Trading places" and can successfully trade orange juice and pig skin futures - you gonna end up with that gorilla.

May 10, 2020 6:23am

Quoting san99

Disliked

BTW he must have had much more than $77,000 in his account.... $320K if he had been able to rack up an account having 200 contracts ??!

Ignored

Dumbooooo🐒🐒

Read it.🙉🙉🐒

It said at price one cent, the margin was 20 dollars ....or something .🙉😂😂😂

Trivion

May 9, 2020 7:50am

Quoting bravester

Disliked

Why didn't he set a stop loss?

Ignored

The thing is, during extremely volatile events SLs don't really help that much.
The best course of action is to stay away from the oil market that has gone crazy. By the way, there were warnings about the possibility of negative oil prices beforehand.

san99

May 9, 2020 12:29am — Edited

Quoting Marcieny

Disliked

I'm glad I predicted the fall and stayed out .... nothing better than negotiating when things are calm ... I hate negotiating movements that I don't like. "You never know how far it can fall when the number 0 is broken."

Ignored

Good instincts on your part certainly ! I recall watching the movement that day and it was really too good to be true. It definitely seemed as if it could not *possibly* go lower, and then it did, more and more. And I certainly was tempted to go in around the $7 mark. Mind you it would have been with the mini QM but that still is $500 per contract per $1 move. It was just so tempting also because the price was so erratic, down $5 one second, up $8 the next, up $6 next, and then down $15 next, etc. - it definitely felt like a scalper's paradise. But thankfully I refrained -- good point you make, best indeed to negotiate when calm.

But I'm also surprised with this and the other traders in the article. I have used IB for some futures trades and especially for these contracts with special expiration rules, such as oil, I was always under the impression that retail traders would mostly be locked out of trading the contract during the final day(s) prior to an expiration due to the risk associated with being called upon to do or take physical delivery. A couple of times I have traded front-end oil and bond futures contracts and got immediate notices after placing the trade that there would be automatic calls like one week prior to the expiration. After that, I had always assumed that I needed to be out by then lest I get called. So I had been wondering too if any retail trader here had actually even been able to trade oil that day. With a huge dose of luck it would have indeed been very nice profits. But 50-50 is not "high-probability trading".

Erebus

May 8, 2020 4:34pm

Oh so close, that's OWED not OWNED people !!!

May 8, 2020 8:21pm — Edited

I'm glad I predicted the fall and stayed out

.... nothing better than negotiating when things are calm ... I hate negotiating movements that I don't like.
"You never know how far it can fall when the number 0 is broken."

May 8, 2020 10:54pm

Quoting NotAtrader

Disliked

{quote} Why didn’t you sell since you predicted the fall?

Ignored

Because I predicted the fall,I didn't want to believe it and I preferred to stay out

...
If you read the gann analysis topic
I talked about the fall a few days before...
I stayed out because my analysis would be from 0 to -2.50 ... but there is a problem the number 0 is very annoying ... you never know how much it can fall ... and something else I prefer to catch the purchase will go up very one day.

May 9, 2020 9:58am

You know that next crash is in 7-9 days right???

I don't want to hear whining then

May 9, 2020 11:47am

Quoting san99

Disliked

{quote} Good instincts on your part certainly ! I recall watching the movement that day and it was really too good to be true. It definitely seemed as if it could not *possibly* go lower, and then it did, more and more. And I certainly was tempted to go in around the $7 mark. Mind you it would have been with the mini QM but that still is $500 per contract per $1 move. It was just so tempting also because the price was so erratic, down $5 one second, up $8 the next, up $6 next, and then down $15 next, etc. - it definitely felt like a scalper's paradise....

Ignored

it is better to wait for the best moves, many things will happen.

May 10, 2020 6:31am

Quoting Fares121

Disliked

{quote} I recall that.. Euro..
.. do you foresee Gold to be in Bullish trend now or still with an opinion of a trash Gold that should go south... Your opinion is appreciated. Cheers

Ignored

Hi buddy.
Happy to help.

The Euro question- i did take profit under that MA200 and expect again 1.10 to touch. 💰👍
Ofcourse damn virus 🐢🐢

Gold. ???
As you know i don't trade gold . It's manipulation . And i have small account NOW 😱👏👍
It's unlikely gold to be up. It's trash compared to Bitcoin .
It's old codger money ....It's old manipulated piece of crab. Longterm i mean 👎👎
Could it jump 300 up.....oh yes. 😨Trumpy....Korea...😱China.

Overall be careful .
Get in bitcoin . Relax. 🍻👍👏

Trivion

May 8, 2020 7:33pm

He just had to go for it (buy oil on the cheap); and it blew up in his face!
There's a lesson to be learned here, especially for newbies who don't know that you can lose more than 100% of your investment.

Steamroller

May 9, 2020 2:12am

The guy was an idiot and got burned. When the market was like that you stay out.

Fares121

May 10, 2020 7:17am

Quoting Not-KPMG

Disliked

{quote} Hi buddy. Happy to help. The Euro question- i did take profit under that MA200 and expect again 1.10 to touch. Ofcourse damn virus Gold. ??? As you know i don't trade gold . It's manipulation . And i have small account NOW It's unlikely gold to be up. It's trash compared to Bitcoin . It's old codger money ....It's old manipulated piece of crab. Longterm i mean Could it jump 300 up.....oh yes. Trumpy....Korea...China. Overall be careful...

Ignored

Cheers Man

May 9, 2020 9:36am

When oil trash was 45 I said going to single digits

May 9, 2020 9:37am

Where u keep your money?

...

In REAL money.

Here's the link to our Crypto, Bitcoin thread.

Only smart people can post. Anyone can read

News, charts, opinions ....

https://www.cryptocraft.com/showthread.php?do=postreply&t=649649&lastpage=1

Check the first post for general info.

While there, please vote on first page.
Thanks

Halving in 2 days and a half

May 10, 2020 7:33am

Quoting Standfirm

Disliked

{quote} Fed are printing because of demand,that does not make the dollar to be weak,dollar is the new safe heaven.

Ignored

In fact they are trying to find the weakness of the dollar ... so it can rise even more ... but it will fall soon..
wait after Trump win again the elections

Breza

May 9, 2020 11:12am

Quoting auricforecas

Disliked

This is exact reason why "neg balance protection" is very important to me...

Ignored

Yes, always, but always without exception, the retailer chooses a broker with negative balance protection.

Standfirm

May 10, 2020 6:22am

Quoting Marcieny

Disliked

{quote} every time before I post my opinion I read the whole story ...

Ignored

Fed are printing because of demand,that does not make the dollar to be weak,dollar is the new safe heaven.

eozdural

May 10, 2020 2:48pm

Quoting Chiqmagnet

Disliked

How the hell does he buy 212 futures contracts with only $77K in his account?

Ignored

read the article, IB incorrectly calculated margin required based on price not falling below zero, meaning they only protected down to zero, so when price is close to zero you can buy more because downside is limited to zero... incorrectly of course.

san99

May 9, 2020 4:35pm

BTW he must have had much more than $77,000 in his account. IB had aggressively raised margins since mid-March or so when many markets went haywire and it was like at least $16K for just one oil contract. So he must have had at least $320K if he had been able to rack up an account having 200 contracts ??!

san99

May 10, 2020 2:47pm

Quoting Not-KPMG

Disliked

{quote} Dumbooooo Read it. It said at price one cent, the margin was 20 dollars ....or something .

Ignored

Whoops !!!! - got it now, the part on the incorrect margin calculations by IB software at the bottom of the article. And all along IB has always touted how techno-savvy its model is smh

bel3ouchi

May 8, 2020 10:44pm

dont buy what you can not pay

bravester

May 9, 2020 1:29am

Why didn't he set a stop loss?

Fares121

May 9, 2020 11:20am

Quoting Not-KPMG

Disliked

When oil trash was 45 I said going to single digits

Ignored

I recall that.. I must admit you have always had a good and early prediction of Price directions on multiple instruments.. however you expected Euro to be bullish and it did slightly go up but now again in bear trend and looks to continue... although you are very bearish on USD due to fed printing money.. do you foresee Gold to be in Bullish trend now or still with an opinion of a trash Gold that should go south...
Your opinion is appreciated.
Cheers

Trader#23ED

May 9, 2020 5:25pm

At least the guy got his money back. So it ended well for him. Some of the posters here didn't read that far I guess.

May 9, 2020 11:44am

Quoting Erebus

Disliked

so many comments showing people obviously never even read the story

Ignored

every time before I post my opinion I read the whole story ...

Muhammedfx

May 9, 2020 2:40am

he tried his luck and he took a chance............ I dont blame him.

Trader#2F39

May 13, 2020 1:53am

CME would also warn 1 day in advance when prices could go negative, but they warned 22 minutes before the ettlement procedure... Of course big sharks will take advantage of that. A 2 min period determined teh price for the cash settled contract. Obviously, that 2 min period was not really reflecting the price of oil. They should have extended teh cash settlement to the next day, then those traders wiuld have gained...

Trader#664B

May 9, 2020 9:00pm