I read about an experiment where a group was given $30 each. Then they were asked whether they wanted to take a gamble. About 70% of the group said yes. Another group was not given money and also asked if they wanted to take the same gamble. About 30% said yes. Apparantly, people are more likely to take a chance with "found "money, even though the value of that money, "found" or not, is the same. People don't seem to mind giving up gains, but they mind giving up principal, although both can have equivalent value. I suppose the principal has more emotional ties to it. Nevertheless, insofar as you're concerned, it's a moot point. Money is always money, all the time.
Pick up a copy of "Why Smart People Make Big Money Mistakes (and How to Correct Them)" by Belsky & Gilovich. It explains what everyone here is trying to explain.
Paste this on your mirror so you can read it every time your take a crap or wash which ever comes first. Do not trade more than the minimum dollars until you reach three times your initial capital. Take out your inital capital when you reach three times your initial capital. Spent 100% ogf your intial capiutal immediately and never put any more capital in the market ever. Read this at least 10,000 times. Some notes: The personal psychology of people varies. To not be a looser, you need to never loose. So do not be investing with anything but profits. You can be really sloppy and messy and not care. You can just live it up after you have spent your initial capital on something that is just a stupid thing to buy. Here you see scared sheep all over the place. They are playing with money they can't afford to make a lot of money with. A lot of people here are not wealthy either. I blame it on their psychological attitude. They are still investing with money that has a particular dark dreary odor. Profit money even smells good on rainy days. I am so old I cannot view anything that was no obtained from profits except my partner. And she definitely smells first class because thats her total habitat. So your question has only one anwer. Go take a crap so you can review it once more. It will be my policy to post one dirty word per post from now on to get kill notices on everything I do. .
Right everyone else knows by now that I was born of missionary parents in blah blah blah. So what. the fact that i have only one hand is blah blah blah too. My point you got. You're just a funny guy. A cardinal psychological value in my post is this: you can do two things to give your psyche a boost that it will appreciate forever. First take your hard earned initial capital and spend it on something whimsical. This is mellow and kewl and really hard rock punchy. next just sit there the whole rest of your life and be able to say: "No matter what i do now and from here on out I cannot loose on the market". Look at all our fellow ET'ers. Hey there. Write down the intial capital value. Divide it into your present stuff. forget the crap you took out before. you took it out slowly furtively and never put it back either. If you get more than 3 for real pull out the initial capital and "just do it". As i loose more of he pices of my bod to cancer, i notice that waht's left still is able to help me screw up my typing etc. Okay relax., I am full bodied and I just type lousey. I don't proof read or see if I didn't push hard enough. I put up with enough crap with moderators and twits, etc. The thing is.... is to be in a good psychological place. Having a mental note that says you can never loose is neat. experiencing spending your inital capital frivolously deon't count as much but it helps let you keep your hair long. My hair is long and Abbie Hoffman liked it that way.
For sure. There should be a thread dedicated to money management if you ask me. But I guess that is just not "sexy" enough for most traders.
every single penny you will ever make (no matter HOW you make it) - was once before someone else's penny. - so what's the point here??