|
Quote: |
|
 |
|
|
I think it was Marty Schwartz who admitted that he doesn't do well after a streak. He does one thing is on Jan 1, he starts at 0. I think this can be done week to week and extract money from the account to keep your feet on the ground. When I started doing this, the giving back become less habitual. |
|
|
|
|
Extracting money from your account is a great idea in my opinion. First, you see and feel the fruits of your labor. This is useful if you have a significant other, family, friends, etc. that may be doubting your new biz venture and you want to show them cold, hard cash. I know others will say ignore them, but if your wife/husband is questioning what you are doing, putting cash in their face should help for a bit. This also reinforces what you are doing each and every day for your psyche and mental well being. I've read that some traders copy their 'paychecks', print off bank wiring papers, etc. and have them ready when you need a boost.
Second, as tor said, you 'restart' your trading account and don't feel as if you are trading with 'house money' which is when many traders easily give money back. It's too easy to just say 'oh, that was just the house money, no biggie'.
I would suggest all traders do this, regardless of account size. I know it seems silly to request a check for a 100 bucks, but you NEED to get that check in your hand, esp in the beginning. You NEED to see and feel that by doing your job, you got paid.
This is another one of those psyche things that I think are more important than any other part of trading. I believe we are our own worst enemy in trading. Your brain is an incredible, complex thing that can really, really get in your way of being successful at times.