[quote=Darkstar;3746743]This is the problem with looking at the market as a math equation....
I am sooo glad i found this thread, ha ha. right up my Alley, why is Dave Ramsey one of the most popular radio shows? Is it because people cant figure out the math to get out of debt? NO! its all dedicated to the mind set and making people realize that even the most educated and mathematically savvy fight the constant discipline to achieve the success they desire. I can do the math; however it is hard for me to place a value on the following. for me the maintenance of my Psyche is king. I'm sure all you robots trade circles around me, but lets compare 5yr net. (not bragging) trying to make a realistic pnt.
This is what all this accomplishes:
1. you actually will hope your first positions are negative a very unusual concept (fixes allot of emotional scared money problems)
2. you will then become a strong holder ,oblivious to spikes and news events. (ie.) not easily shaken out.
3. It satisfies the need to be in the market as many newcomers fall prey to. (ie) not up one minute and give it all back and then some the next.
4. When you realize that compounding is the most powerful tool you have, then the slow but positive growth will fuel your success.
all this with total max dd @ 5% and total 4 entries.
I am sooo glad i found this thread, ha ha. right up my Alley, why is Dave Ramsey one of the most popular radio shows? Is it because people cant figure out the math to get out of debt? NO! its all dedicated to the mind set and making people realize that even the most educated and mathematically savvy fight the constant discipline to achieve the success they desire. I can do the math; however it is hard for me to place a value on the following. for me the maintenance of my Psyche is king. I'm sure all you robots trade circles around me, but lets compare 5yr net. (not bragging) trying to make a realistic pnt.
This is what all this accomplishes:
1. you actually will hope your first positions are negative a very unusual concept (fixes allot of emotional scared money problems)
2. you will then become a strong holder ,oblivious to spikes and news events. (ie.) not easily shaken out.
3. It satisfies the need to be in the market as many newcomers fall prey to. (ie) not up one minute and give it all back and then some the next.
4. When you realize that compounding is the most powerful tool you have, then the slow but positive growth will fuel your success.
all this with total max dd @ 5% and total 4 entries.