Quote from dbphoenix:
Hey, I'm loose all the time.
Me to. I'm moving up in my posts to suggesting the opening trend too. Did you see my post on that yesterday.??? The one for the open today?????
Stay loose. We got point 3 now as you see too.
Loosing from the initial capital vs. loosing from made profits?
- Thread starter Hun
- Start date
Me to. I'm moving up in my posts to suggesting the opening trend too. Did you see my post on that yesterday.??? The one for the open today?????
Stay loose. We got point 3 now as you see too.
limitdown
There is a difference, is depend how you got the money for the initial capital, but you big traders probably donât remember anymore, because you passed that stage.
OK, if you got the money from your father to play with, maybe it isnât, but if you had to save it up from your full time job (if you not a full time trader) I think it would make a difference.
I agree that the profit is hard earned cash, but in regards to making $1,000 with $10,000 or $10,000 with $100,000 is pretty much a same effort.
Think it as if you would go to a casino with a $500 and come home with only $200 or nothing (probably the latest) or win another $500, but on the end lose back $300, so you end up with $700. Would it make a difference how would you feel???
hun
There is a difference, is depend how you got the money for the initial capital, but you big traders probably donât remember anymore, because you passed that stage.
OK, if you got the money from your father to play with, maybe it isnât, but if you had to save it up from your full time job (if you not a full time trader) I think it would make a difference.
I agree that the profit is hard earned cash, but in regards to making $1,000 with $10,000 or $10,000 with $100,000 is pretty much a same effort.
Think it as if you would go to a casino with a $500 and come home with only $200 or nothing (probably the latest) or win another $500, but on the end lose back $300, so you end up with $700. Would it make a difference how would you feel???
hun
Yes, you're right there is a significant difference.
I studied under a money manager who achieved some pretty good success, and he had a mantra that he would teach his classes: "your profits are not the house money, but your's, you earned it". He would convey this concept with such force that you actually did get his point, when you make profits, you are not playing with house money, as if somehow its not real or not hard earned.
That subtle difference in perspective is what starts a trader on the path to winning and keeping his/her earnings instead of constantly staying at the crap tables throwing back what was earned beyond the initial investment.
Cheers
What if they were given 1 million each 
All that kind of questions are classical studies about utility concept and risk aversion. It is no use in trading (it is more useful for economists for the nation investment). The importing thing in trading is capital preservation at least when you trade your own money that's why one must be always reluctant to give its capital to others to trade because I already talked about the difference between classical alpha and beta risk in statistical inference which corresponds to the distinction between real loss and opportunity loss and that is something which is rational and not only psychological: when you trade with your own money you will privilege alpha risk whereas those who trades OPM (Others people money) will privilige beta risk since the real risk is not for them but for their clients. So the bulls manias since they risk nothing. Of course there will be honest guys that will care about your money as if it was theirs but statistically speaking the average behavior will be to privilege beta risk because it is their interests : you can't erase the predominant interests of a whole group.
All that kind of questions are classical studies about utility concept and risk aversion. It is no use in trading (it is more useful for economists for the nation investment). The importing thing in trading is capital preservation at least when you trade your own money that's why one must be always reluctant to give its capital to others to trade because I already talked about the difference between classical alpha and beta risk in statistical inference which corresponds to the distinction between real loss and opportunity loss and that is something which is rational and not only psychological: when you trade with your own money you will privilege alpha risk whereas those who trades OPM (Others people money) will privilige beta risk since the real risk is not for them but for their clients. So the bulls manias since they risk nothing. Of course there will be honest guys that will care about your money as if it was theirs but statistically speaking the average behavior will be to privilege beta risk because it is their interests : you can't erase the predominant interests of a whole group.As an Englishman I find it very amusing when Americans try to correct spelling incorrectly.
English is the language of England, not the American version.
The English reference book is the Oxford English Dictionary where
Lose is a loss or deficit
Loose (American Version) is slack, not tight
If you want to pick up on English spelling mistakes do not refer to it as English, refer to the American hybrid as the reference unless it is incorrect in accordance with the Oxford Dictionary.
English is the language of England, not the American version.
The English reference book is the Oxford English Dictionary where
Lose is a loss or deficit
Loose (American Version) is slack, not tight
If you want to pick up on English spelling mistakes do not refer to it as English, refer to the American hybrid as the reference unless it is incorrect in accordance with the Oxford Dictionary.