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The biggest problem IMO is being able to stomach trading a very large fraction (or more likely, multiples) of your annual salary and not being affected by very
by asddddd 9y ago
The biggest problem IMO is being able to stomach trading a very large fraction (or more likely, multiples) of your annual salary and not being affected by very large red numbers. If you stop thinking rationally, you lose. If you experience too much stress, might as well sell your time instead and avoid the drug habits.
In other words, you have to be able to put your house on red, and restrain yourself from doing it unless you're certain the numbers are in your favour.
I don't think many people can do this.
- unknown_apostle 9y agoWhy do you have to use amounts of money that make you uncomfortable? A good position should end up becoming big vs. the lesser positions mostly on its own merits. Yes the stomach and patience are hard. Basically because you will never be sure.
- asddddd 9y agoBecause if you're comfortable, it's probably because either you aren't trading enough for it to be worth the time (it's a hobby) or you have so much in the bank that trading performance is mostly about whether you can afford a Monet.
- unknown_apostle 9y agoAvoiding stress, in the context of this discussion, for me involves not giving "tips", doing your own money, accepting and sometimes loving volatility, taking losses and accept undergoing periods of not looking like part of the winning team (which I think is what the original article is about), avoiding irrelevant constraints, and obviously avoiding ruin at all cost. But you can't get around doubt. Having proper income for daily life and budgeting for setbacks is a different discussion. That's an issue you must get in order prior to investing. It's a prerequisite.