Individual stocks traded down to 1 cent, then as high as $100,000 per share, before crashing again – as the “HFT robots” went insane. Between 2:42pm and 2:45pm over $1 trillion in market cap had been erased.
And my Procter & Gamble trade?
PG had plummeted to $39.37.
The move was SO fast, it had shredded through my stop loss. I finally got out at $57.03 – for a loss 608% bigger than my “worst case” exit. I was staring at a brutal 32% draw down on my account.
I remember feeling like I’d been smashed in the belly with a sledgehammer, and the worst part was that…
Wall Street Had Their Bad Trades Reversed!
Prominent financial firms lost vast fortunes in the turmoil. But did they eat the loss? Of course not. Within 24 hours the SEC, the exchanges and FINRA had stepped in to reverse “bad trades’ representing 5.6 million shares. Most of Wall Street was made whole.
The whole event was swept under the rug, as if it never happened.
Where’s Your “Bad Trade” Rebate?
I still had to eat the loss on my trade, and the 32% hit I took to my account. Because when ordinary traders like us have a losing trade, it stays lost. The NASDAQ or the NYSE certainly aren’t scrambling to make you whole again.
And that’s the “Bad Beat” Double Standard…
Wall Street paid out $28.5 billion in bonuses in 2014 by bending or breaking the rules, but you and I don’t have that advantage. We have to be more accurate. We have to be better than the institutions at spotting the tricks and the traps.
You have to understand WHY bad trades happen in the first place. And to do that, you need to visit the one place every trader hates to look – your losing trade log.
Which is exactly what I did…
I Analyzed EVERY Painful Loss & Bad Beat
From My 10 Year Trade Log
I wasn’t looking for new ways to spot winners. No – I wanted to know what was causing me to stumble into losers. What I discovered was pretty astounding, and flies in the face of everything you think you know about trading.
Popular Trading Tools & Indicators
Were Hopeless At Spotting Bad Trades
Yes – they could spot the occasional winner. But by using them I’d been tricked into so many brutal traps, they wound up as money losers on balance. Because when you trade with them – you open yourself up to punishing draw downs.