There used to be a real popular senior trader and mentor in our group named Sherman. He used to work really hard and was kinda cool guy. You guys must have heard about Sherman box when Victor or some other senior traders are in room – this Sherman guy was the inventor of that Sherman box.
Anyway this blog Vlad is writing to tell you about the anecdote when Sherman got Mangal Margined (remember I coined a new term Mangal Margin that everytime from now on if someone will blow his/her account because of wave theory it will be referred to as being Mangal Margined).
Anyway this incident is almost 1 year old when Gold was at its highs but wave theory proponents saw 1 more up. So when gold started dumping (instead of trading with the trend and shorting) they started longing like mad.
They tried to buy at 0.236 fib didnt work.
Sherman was long big lots. Anil said dont worry; one more move up will come it will break the top. Its coming.
So they (especially Sherman tried to long 0.318 fib ) it also didnt work.
Sherman was now in big drawdown; he contacted Anil. Anil nonchalantly said its coming.
Sherman added more to the trades and went long 0.618 fib. it seemed to be working for a while. Anil told everyone , see its working. Wave theory does work. And then
Last resort was 886 fib. this was Sherman’s only hope. He was down around USD 60k.
Ultimately it broke the wave’s bottom.
Sherman blew his account losing in excess of around USD 95k.
Sherman used be such a cool and funny guy always.
Anil Mangal – master of counter trend trading buying gold for 1 more up thinking he is oversmart in a dumping market
On his last day in trading room; he said to everyone that clearly this bullshit theory doesn’t work and that he was going somewhere else to look for methods which work. He was never seen in the trading room again.
He learnt his lesson after blowing 95k and having a scar for life.
How many will you lose before you will learn yours? Or are you also waiting to be “Mangal Margined”
PS: if you will look at the chart in hindsight now, you will not see any thing of significance; Anil Mangal will cutely call it contracting or expanding or whatever fancy name he has invented (for hindsight preaching) but lots of wave theory guys blew their accounts trying to get one more up ( Vlad calls this trying to be oversmart and trying to tell market what market should do instead of trading with the market) This is just ONE example of when we blew our accounts looking for big move (just like GBPCAD great genius short at an important support). Vlad will tell you more stories about what happened in the past.