An interesting question....

[paperboy]

Something that might be related..

Why must most traders fail for the market to function? And is it related to higher volumes at extremes?

 

[toc]

Some points were made about 'psychology' which I did not understand. But I strongly feel that once you reverse the trading process i.e. aim at losing all the 40K in account, then your 'psychology' will kill you again...........this time working against your goal and thus you are right.......you might end up building the account. This would be very true for systems that are not mechanical i.e. trading as an art not science.

Somewhere I read, that success in trading is 10% system/strategy and 90% Mental. Larry Williams says over his career he has seen some indicators work well for time being and then go bust and then start to work well again.

 

[Ripley]

Why is this so hard? There are a million ways to make money, but more like a zillion ways to lose money.

It takes money to make money. Thus, capital is a limited resource. If it doesn't add up, then it is be being taken away. And it doesn't take too much of those take aways to completely blow an account.

It would take me a day to blow 40K, and would take me a year to make 40K.

Lets get it straight, it is EASY to lose money, even if you try to lose money because markets are set up to lose money.

 

[toc]

"The psychological demons would be the same... except in reverse."

Sorry mate, I did not read the last sentence of the thread........that's what my post above says too.

Success in trading also depends on money management. How many of ET folks do MM actively? I would doubt 10% at most.