I am starting this thread expecting to be able to discuss how our genetic makeup affects our ability to create wealth and keep it. I will, for example purposes, contribute a little of my personal experience. As most of you know, by looking at people around you, you will notice that when it comes to making money some people seem to be able to make it with or without much effort, while others who irrespective of their efforts and work hard through all their lives end up without it. I believe that genes and not the amount of work and effort play an important role on this. I believe that when it comes down to money there are 2 genes. The "making money' gene and the 'keeping or holding money' gene. Some people are born with both genes. Most people are born without the two. Having one or the other means little in the long run, unfortunately. I have found I fall into the "making money' gene pool. Keeping money has always eluded me and I give credit to this, to the 'next year I will be a millionaire so what the heck let's spend money like it's 1999' syndrome. I am obviously changing my ways around money in a big way. Hoping I can learn to 'grasp' and 'hold to' all/most of the money that I make from my mind's work. The most and fastest money I made in my life was when I associated with someone who had the gene I was/am missing. Obviously depending on someone else for my subsistence for the rest of my life is something I didn't want to do, so when I started trading I knew it was possible that at some point, regardless of how much time and effort I would put into this venture, that this missing link would show it's face, and it has, like clock work. Gene one: has the vision for extraordinary profits but misses what gene two has tons of. Gene two: Has the ability to 'bring home the bacon' without feelings of guilt and uses 'save mode all the time' but lacks the vision and entrepreneurial spirit, gene one has tons of. So the question to the audience is. Can genes be altered perpetually ? Will I or anyone else with the same issue be able to keep all the money made, or will our subconscious always find a way to give it back? Has anybody in the audience, who is presently a successful trader also gone through this issue ? I was born to trade, so I view this as a speed bump in my road to successful and consistent profitable trading. The reason I bring this matter to the board is to get other's ideas on the issue, since I am sure traders don't lose money because of the system they use necessarily, but because of their mind set and genetic makeup in regards to money. Ideas welcomed.
So this is a Gene???? Personally I believe it all boils down to what you are taught and self control. I am/have been an entreprenuer since I was 9. (My 1st Business) I have always made money without trying. BUT, I was raised to chase STUFF, so I spent money sometimes faster than I made it. Again effortlessly. When I got into trading in the late 90's I began to learn the importance of keeping money. Like most I bubbled up, then lost it all. But I learned the "Keep Money" Lesson. Then all of a sudden it became harder to make money. LOL. But I persevered, and starting "Keeping" more of what I made. Then i jumped back into trading and started making and keeping more. I changed avenues, reinvented my business and again I started making money without a lot of effort. I have never CHASED a dollar, I prefer the dollars to chase me. In a nut shell, I became disciplined. I still make money with ease, now I keep it with even more ease. And I am passing all these lesson down to my children. They are being taught the importance of keeping money and not the importance of Living "big willy style" You can own the best and not lose the rest.... Not a gene.
Watch World Series of Poker. The guys who are consistently in the finals don't make as many stupid bets and don't play "on tilt" as often as the guys who tend to blow up early. I can't tell you how many times I see someone playing well all afternoon, to lose 50% of his chips on one close hand and then come right back to go all in and get knocked out. Even guys who've been playing for decades. Having said that, the guys who are in the finals are also aggressive when they need to be. Being defensive gets you nowhere. IMHO, it's both genetic and experience.
I've read about people who lived through the Great Depression and how it totally rearranged their thinking. Most of the survivors of the Depression throughout their lives were afraid it would happen again. Many accumulated wealth but were afraid to spend it. Totally opposite of the younger generations of today who think that money grows on trees and nothing bad will ever happen. They have never experienced financial adversity nor were taught the value of money. Still, I think some of it could be genetic. Some people have an automatic ability to make things and money happen. Some have a powerful drive to make money starting at a young age. Some have a very strong survival instinct and hoard money.
"Keeping money" is not difficult. It all revolves around simple everyday choices. Whatever you drive, no one will remember. Wherever you live, no one will care. Whatever is eaten will be in the toilet as waste in a matter of hours. Whatever woman you go out with will probably be gone eventually and all that money spent a waste. The list goes on. . . There are many things you can simply do without...
Great post and as we all know poker provides psychology of risk examples analogous to other speculations. However poker also provides another real life variance....LUCK! Much success is randomness.
Great post. Learning how to keep money takes effort when one wasn't taught about it as growing up. I am not so sure that becoming wealthy is just about a discipline issue though. I think genes have something to do with it. Even if you are now able to make and keep money effortlessly I believe as you say that being an entrepreneur at the age of 9 that you have a genetic makeup which you were born with that helped you get to where you are. I think it's all about genes.
Well being born into the right family seems to be the best way to get the "make money" gene. You do not even have to be disciplined, smart, creative, hard-working, opportunistic no, you will just be rich and keep on making money, since it takes money to make money.