Is it true that successful trader is very thrifty?

Heard that if u are successful trader, u will be so thrifty, because of your tight money management skill, somehow u also apply to your daily expenses, look at Buffet as example (though he's not trader)

Even if u are consistent in producing your profit, but somehow u just worry about what happen if some days u blowout big, get caught in making mistakes, somehow the fear is there... so another reason for causing frugal

Any of you having this thrifty behaviour??

 

That's right. There are basically two reasons that I can think of why both traders and investors are unbelievably thrifty.

Trader: He is thrifty due to the fear of future loss and therefore avoids to spend money on items he does not need every day. He spends his money wisely on assets for rainy days. He eats cheap, he lives cheap out of fear.

Investor: Each cent wasted is a cent not multiplied. An investor only sees the future value of his net worth and tries to maximize it by saving and investing money today. So everything is a question of cost of opportunity to him. He eats cheap, he lives cheap out of high expectancies.

 

You think Stevie Cohen is thrifty? He spent hundreds of thousands of dollars on a dead fish. He spent hundreds of millions of dollars on a piece of cloth with some old paint on it.

 

I am thrifty. I also enjoy saving and investing.

 

That's an investment not consumption. Don't confuse the two.

 

Who will buy those pieces of cloth from him at a higher price? (Hi, Stevie, I will buy that piece from you at a price of $137,000,001, after I make enough money from day trading e-mini in my basement)

What about turning his home into a sports complex? Real estate investment? What about giving money to local hospital? Health Insurance?

 

Cohen's name is pretty high up on the wall in the new wing in Greenwich Hospital.

 

don't think successful traders r thrifty, think they just live within their means, if they make more they spend more, less they spend less after excluding the rainy day sum already set aside, its just common sense, wh presuming if they can figure out how to trade wh isn't easy they mst be able to manage their personal finances wh be a peace of cake to them, thats what i think may not be true, not that i can call myself successful yet, there's no pt being thrifty to the extreme, afterall u can bring it /w u if u just knock off today, no one can say