Psycology
- Thread starter Commisso
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90% of people "fail" at most things anyway (check any new business venture statistics. I have no problem with what you say, and even agree with some of it, I just try to get people past the "contemplation stage" and into the "implementation stage" so they can more easily evaluate their chances for success.
We only have a short time to attempt anything in life, and when we put things off due to fear of failure, then we have zero chance for success (much reduced from the 10% you state above).
And, hey, I can be as esoteric as the next guy when I want to...
Good Luck to all as well!!Discipline is important and also ( emotions) trading is not that difficult if you have an extra income (Tony OZ , Don Bright etc ) . Having an extra income doesn't make you a good trader of course, but it sure helps with the keep your emotions out of things ( i.e scared money ) " Trading is 80% emotional " - Turtles
oolarinm makes a valid point... I started several years ago with less than $20k in my account (in 2001, I raked in $300k... and it all begin with $20k several years ago) ... $20k was all I had back in my formative days as a trader (I had more asset wealth, but $20k was my starting stake that I pledged not to lose, else I would quit the game)... granted, market conditions were somewhat fortuitous but, nevertheless, the lack of outside income placed paramount importance on having the right psychological approach...
Don's comments may be valid for people with other income and/or who are not trading scared money (e.g. people trading Other People's Money).
However, I believe that the other comments (including mine) are valid for people putting their wealth on the line with little external monetary insurance. It is for those people that my comments were intended i.e. full-time traders trading their own money.
Don's comments may be valid for people with other income and/or who are not trading scared money (e.g. people trading Other People's Money).
However, I believe that the other comments (including mine) are valid for people putting their wealth on the line with little external monetary insurance. It is for those people that my comments were intended i.e. full-time traders trading their own money.
Now let's keep this in perspective. How many of you had to keep jobs while going to school? How many of you keep jobs while trading at home?
If you started a donut shop (hmm, donuts...)(oops, sorry)...then you are really, really risking $$ in franchise fees (non refundable and wasted), spending money on equipment, paying employees, etc.
I have been in several business ventures, and the employees had to be paid no matter if we were making money or not...now that is risky. You put up a little $$, if it doesn't work, then you take out what's left and go on with your life...no harm, no foul. If you don't try new things, then you can't ever have a chance of success (I am not trying to preach here, but how many "honest" businesses can you get into for $25K, get free use of capital, and have an unlimited upside, and have fun at the same time). It's not for everyone, but then what is?
I certainly wouldn't want to go to Medical school for 8 years, and then spend another 4 years as an intern, and then spend 10 years paying off student loans, just to be a Doctor with a chance to work for an HMO...but some people do.
Personal choices, risk reward (keep the equation in mind...small risk, big reward).
Just a little "philosophy to go with the psychology" -- All I am trying to say is that trading for a living is a much better and safer road than many travel.
Good Luck everyone!!
If you started a donut shop (hmm, donuts...)(oops, sorry)...then you are really, really risking $$ in franchise fees (non refundable and wasted), spending money on equipment, paying employees, etc.
I have been in several business ventures, and the employees had to be paid no matter if we were making money or not...now that is risky. You put up a little $$, if it doesn't work, then you take out what's left and go on with your life...no harm, no foul. If you don't try new things, then you can't ever have a chance of success (I am not trying to preach here, but how many "honest" businesses can you get into for $25K, get free use of capital, and have an unlimited upside, and have fun at the same time). It's not for everyone, but then what is?
I certainly wouldn't want to go to Medical school for 8 years, and then spend another 4 years as an intern, and then spend 10 years paying off student loans, just to be a Doctor with a chance to work for an HMO...but some people do.
Personal choices, risk reward (keep the equation in mind...small risk, big reward).
Just a little "philosophy to go with the psychology" -- All I am trying to say is that trading for a living is a much better and safer road than many travel.
Good Luck everyone!!
Don,
I don't dispute anything you say in your reply... but my point remains that if one doesn't have alternative income streams (which provide comfort-level income), then psychological issues in the sole activity of trading are amplified.
Candle
P.S. My hat goes off to people such as yourself who have the ability and entrepreneurial fortitude to run several successful ventures.
I don't dispute anything you say in your reply... but my point remains that if one doesn't have alternative income streams (which provide comfort-level income), then psychological issues in the sole activity of trading are amplified.
Candle
P.S. My hat goes off to people such as yourself who have the ability and entrepreneurial fortitude to run several successful ventures.
To heck with the "turtles" -- trading is not 80% emotional, and really shouldn't be. Is there emotion involved? Sure! But by keeping things in perspective, you can overcome most of it.
And you will never find me saying..."quit your job, risk everything you inherited, and try trading"....it's just a profession that can make you some money, if you're good...plain and simple.
And you will never find me saying..."quit your job, risk everything you inherited, and try trading"....it's just a profession that can make you some money, if you're good...plain and simple.
Some people go to med school then Intern then pay back loans for years because they want to help people not make money. I don't understand that, but we must value that way of thinking so the rest of us can trade. The, we make lots of money trading and buy donuts!! Don is right. What other business can you double in size by typing a 2 instead of a 1? or add a zero to the end to increase your business tenfold. Now if we could just figure out which time to do it...
Don,
My point is NOT that trading is not a profitable business , but that if you have an other source of income while you trade and are going through your leaning curve, it is not difficult.
I have noticed alot of very experienced traders saying that if you are new expect to loss money-break even in your first six months at least( Can i have your view on this) . Now think of the level of pressure that will represent to someone losing money, and does not have ANY income comming from any other source. Yes trading is a viable business but it will be alot easier with extra income.
My point is NOT that trading is not a profitable business , but that if you have an other source of income while you trade and are going through your leaning curve, it is not difficult.
I have noticed alot of very experienced traders saying that if you are new expect to loss money-break even in your first six months at least( Can i have your view on this) . Now think of the level of pressure that will represent to someone losing money, and does not have ANY income comming from any other source. Yes trading is a viable business but it will be alot easier with extra income.