MARKET CRASH

The 1987 Black Monday

Trademaj 9 min read

On October 19, 1987, the Dow Jones fell 22% in a single session — still the largest one-day percentage drop in its history. Program trading and portfolio insurance strategies amplified the selling into a self-reinforcing spiral.

Black Monday

Launch
—
Death / Exploit
Oct 19, 1987
Total Loss
~22% (Dow, single day)

Program trading and portfolio insurance strategies amplified an ordinary sell-off into a self-reinforcing crash, wiping out roughly a fifth of the market's value in a single session.

Lesson

Never underestimate market volatility, or how automated strategies can amplify it.

More From the Graveyard
BLOWN ACCOUNT
From $250K to $0

Lesson: Emotions and concentration risk kill accounts — no single trade should be able to end your career.
FAILED STRATEGY
The Martingale System

Lesson: Position sizing is everything — a strategy that "always eventually wins" can still ruin you on the way there.
CRYPTO
🪦 The Crypto Exchange Graveyard: 4 Collapses That Erased Billions

Lesson: No proof of reserves, no safety — every one of these collapses shares the same root cause in a different costume.
No Comments
Leave a Comment

Your email address will not be published. Required fields are marked *

Search
Buried Something?

Share your blown account or failed strategy — someone else's lesson could start here.

Submit to the Graveyard