How did you manage your windfall? | Forex Factory

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How did you manage your windfall?

  • #1
  • First Post: Edited 11:46am Feb 1, 2008 11:11am | Edited 11:46am
Hi everyone,
this would be my first (edit) thread here and just wanted to seek some advice regarding success as a commodity trader.

This is a soup question, (ref: Finding Forrester), How did you manage your windfall?

I'm pretty much sure that FF got some of the traders who were not born with a silver spoon and made it, finally. The question is how did you handle your success?

Learning to drive, the nervousness turns to excitement to reckless driving, a crash survived with few broken ribs then cautious driving and finally boring every day ride to work. I think you know what I'm talking about.

But now you have made it and those of you can afford that Aston Martin if you like.

Unless one is born into a traditionally rich environment, where wealth is taken for granted and passed to next generation, handling wealth is rather difficult, I guess. People changes with sudden windfalls and attitude changes, behavior, eating habits and social class everything changes. Most of such windfalls ends up either on lavish spending or I don't know, waste!

So this post is directed to those of you who made it as a trader from modest background. Please share how you handled your success.

(No I'm not guessing that you turned your $5k into million and thats why I didn't post it to the Beginner's forum.)

This is a soup question because after blowing few accounts when it started to feel odd that my 3rd account lasted over 6 months, and after the first year the odd feeling now really starts to scare me a lot. Specially after I started catching myself about to press that self-sabotage market order, the ROI scares me of sudden changes.

Did you feel afraid of change? If then how did you handle it?
  • #2
  • Feb 1, 2008 11:24am Feb 1, 2008 11:24am
Quoting im7i4z
Hi everyone,
this would be my first post here and just wanted to seek some advice regarding success as a commodity trader.

This is a soup question, (ref: Finding Forrester), How did you manage your windfall?

I'm pretty much sure that FF got some of the traders who were not born with a silver spoon and made it, finally. The question is how did you handle your success?

Learning to drive, the nervousness turns to excitement to reckless driving, a crash survived with few broken ribs then cautious driving and finally boring every day ride to work. I think you know what I'm talking about.

But now you have made it and those of you can afford that Aston Martin if you like.

Unless one is born into a traditionally rich environment, where wealth is taken for granted and passed to next generation, handling wealth is rather difficult, I guess. People changes with sudden windfalls and attitude changes, behavior, eating habits and social class everything changes. Most of such windfalls ends up either on lavish spending or I don't know, waste!

So this post is directed to those of you who made it as a trader from modest background. Please share how you handled your success.

(No I'm not guessing that you turned your $5k into million and thats why I didn't post it to the Beginner's forum.)

This is a soup question because after blowing few accounts when it started to feel odd that my 3rd account lasted over 6 months, and after the first year the odd feeling now really starts to scare me a lot. Specially after I started catching myself about to press that self-sabotage market order, the ROI scares me of sudden changes.

Did you feel afraid of change? If then how did you handle it?
You should read "Millionaire Traders" by Kathy and Boris. A lot of stories of people who started with minimal amoutns of money and hardships. But hard work and moral support does pay off.

Me, I'm still getting there
  • #3
  • Feb 1, 2008 11:53am Feb 1, 2008 11:53am
Quoting hilmy83
You should read "Millionaire Traders" by Kathy and Boris. A lot of stories of people who started with minimal amoutns of money and hardships. But hard work and moral support does pay off.

Me, I'm still getting there
Thanks for suggesting the book Hilmy, I'm ordering it :-)

Me too, still getting there and once it clicked that I'll actually be there and finally moving, it's scary.
  • #4
  • Feb 1, 2008 3:58pm Feb 1, 2008 3:58pm
Quoting merlin
i pretend that it pains me to spend the money, regardless of how insignificant i feel it is.
Merlin, some how, I exactly know what you mean by "pretend." Or I'm not getting it at all :-)

Initially whenever my weekly target use to reached by Tuesday London session I would have calculated how much "valueless/insignificant" house money I've on the account to "try" out things. This habit still hunts me down. But the real problem is once you actually withdraw that "valueless" house money isn't it?

You start to "try" out things in real life (not just impulsive market orders with house money this time) that you wouldn't have ever done if it came from a bonus on your day job which contradicts with your whole value psyche. Once your brain is hardwired to calculate geometrically it is really hard to give any material value to any amount of money. All you start to think is "Time is money" and "Money lost, time lost."

Its like choosing mountain climbing as profession while you know you got vertigo and you can't look down for a single second or its all over.

On the contrary, when I thought that if I give value to that "house money" it is actually hard to put another trade with it.

"I can so I am" kicks in.

I think I'm just going through some trading puberty thing that all traders must confront at some point and we must confront individually. This is what actually separates the winners from the chokers, IMO.

Just trying to take it easy but damn the wealthy people have some natural "market barriers" its hard to join them (when you know your mom didn't teach you which side of the plate the wine glass should be because dinner served with cold water).
  • #5
  • Feb 1, 2008 4:43pm Feb 1, 2008 4:43pm
I guess I've heard it all now.
  • #6
  • Feb 1, 2008 7:19pm Feb 1, 2008 7:19pm
I was just looking at a 'Towel Warmer' - and serously considering it - Only cause it's on sale and it is darn cold outside.

Edwin LeFevre in ROASO states the following. I think there may be a lot of truth in this statement:

Quote
As a rule a man adapts himself to conditions so quickly that he loses the perspective. He does not feel the difference much—that is, he does not vividly remember how it felt not to be a millionaire. He only remembers that there were things he could not do that he can do now. It does not take a reasonably young and normal man very long to lose the habit of being poor. It requires a little longer to forget that he used to be rich. I suppose that is because money creates needs or encourages their multiplication. I mean that after a man makes money in the stock market he very quickly loses the habit of not spending. But after he loses his money it takes him a long time to lose the habit of spending.
PS - -I am not there yet either - but travelling steadily.
PSS: MuddBudda' signiture probably states it the best " I spent 90% of my money on woman and drink. The other 10% I wasted."
In trading, there is no bullshit. You either make money or you don't.
  • #7
  • Feb 1, 2008 8:38pm Feb 1, 2008 8:38pm
This thread is comical to me.

It's chicken before the egg.

Why worry about exclusive wealth before it happens? IF you are fortunate enough to obtain it, then sit down with a certified Financial Advisor at your bank.
  • #8
  • Feb 1, 2008 9:23pm Feb 1, 2008 9:23pm
Having a plan takes the worry away - all you need to do is execute.
"Plan, Believe, Begin, Continue, Finish"
Basic tenants

Tdion - With all due respect - You need one of those renaloctomy surgeries - You know the one where they severe the nerve between your ass and your eyes. It'll remove that shitty outlook on life.

Quoting tdion
This thread is comical to me.

It's chicken before the egg.

Why worry about exclusive wealth before it happens? IF you are fortunate enough to obtain it, then sit down with a certified Financial Advisor at your bank.
In trading, there is no bullshit. You either make money or you don't.
  • #9
  • Feb 1, 2008 10:07pm Feb 1, 2008 10:07pm
What's wrong with a little pragmatism?

I see a lot of BS but no pictures of people in their yachts. You know, the type the "windfall" lets you buy?

Let me put 2 + 2 together for you..... there is a lot of "dream selling" or "snakeoil" in forex, but not a lot of reality checks.... hence we constantly see threads like

"HEEEELP I BLEW MY ACCOUNT"
  • #10
  • Feb 1, 2008 11:25pm Feb 1, 2008 11:25pm
Quoting im7i4z
Hi everyone,
...

Did you feel afraid of change? If then how did you handle it?
yes, getting out the comfort zone is fearsome, but we can get used to it...
i can't handle it, i just try to get used to it.
adaptation it is,

there is always something that haven't change while the other changed... use it as anchor, just like using one foot while swinging the other foot forward.
  • #11
  • Feb 2, 2008 12:44am Feb 2, 2008 12:44am
Quoting tdion
What's wrong with a little pragmatism?

I see a lot of BS but no pictures of people in their yachts. You know, the type the "windfall" lets you buy?

Let me put 2 + 2 together for you..... there is a lot of "dream selling" or "snakeoil" in forex, but not a lot of reality checks.... hence we constantly see threads like

"HEEEELP I BLEW MY ACCOUNT"
The ones with the boats maybe don't bother posting anymore - they're enjoying their boats.

Personally, I handled my success by moving to a tropical island. The boat is coming soon, and then you won't be seeing my posts any more .
  • #12
  • Feb 2, 2008 1:00am Feb 2, 2008 1:00am
Well, a few people are bound to beat the system. Maybe you are just one heck of a trader, played your fundamentals and TA right, and caught some lucky breaks.

I guess this thread was about handling the windfall anyway, so I'm sure they'd rather hear you talk about that instead of posting pictures of your tropical home.
  • #13
  • Feb 2, 2008 5:46am Feb 2, 2008 5:46am
Quoting tdion
What's wrong with a little pragmatism?

I see a lot of BS but no pictures of people in their yachts. You know, the type the "windfall" lets you buy?

Let me put 2 + 2 together for you..... there is a lot of "dream selling" or "snakeoil" in forex, but not a lot of reality checks.... hence we constantly see threads like

"HEEEELP I BLEW MY ACCOUNT"
No bull! At least this one is a new twist --

"HEEELP! I'M RICH, NOW WHAT DO I DO?????"
  • #14
  • Feb 2, 2008 7:46am Feb 2, 2008 7:46am
Quoting Gwan
yes, getting out the comfort zone is fearsome, but we can get used to it...
i can't handle it, i just try to get used to it.
adaptation it is,

.
I have not made millions in Forex. But in general, from what I learnt from the older generation - especially those who had gone through the 2nd world war - money is no security. Anything can happen and that can turn your German marks or Japanese Yen into valueless note. Houses? The communist regimes took them over. If you don't give them the titile deeds, they hang you up on your toe !!
Material things you hang onto will only give you more worries. To up keep them , insurrances and etc. You need more and more to live up with it. Just keep your pride low. If you don't you will see the cost of keeping up with it to sustain your pride to live up to the expectations of your neighbours etc. Whether you are rich or poor, put humility as your front and be humble inside. Then you can live in REAL freedom. Whether rich or poor, prepare inside you mentally a life of simplicity. If you mind can live with living almost with nothing phsically and vis-a-vis with those around you, you have that which will give you all the peace and happiness in live. Many who have not arrive at this first, had gone on to borrowing to keep up the facade and had gone to ruins. Sort of maringale in life.
It's my opinion. I am probably not the right person to give you the answer now. I have triple $ digits loses right now on some of my stocks. Don't worry. It is 1 to 1 leverage. It is still a long way to get the $ms to zero. LOL
  • #15
  • Edited 9:31am Feb 2, 2008 9:14am | Edited 9:31am
I only suggested the surgery cause I had it done several years go and it has improved my life considerably. BTW: I don't see you as a pragmatist.
Quote
According to the down-to-earth pragmatist, bickering metaphysicians should get in the habit of posing the following question: “What concrete practical difference would it make if my theory were true and its rival(s) false?” Where there is no such difference, there is no genuine (that is, non-verbal) disagreement, and hence no genuine problem.
Source - http://www.iep.utm.edu/p/pragmati.htm

Another cliche - but very true: "Fail to plan, and you plan to fail" - I guess that is why we have and always will have the HELP MEEEEEEEEEE, I FAILED... threads. - In reality they executed their plan perfectly....

Quoting tdion
What's wrong with a little pragmatism?

I see a lot of BS but no pictures of people in their yachts. You know, the type the "windfall" lets you buy?

Let me put 2 + 2 together for you..... there is a lot of "dream selling" or "snakeoil" in forex, but not a lot of reality checks.... hence we constantly see threads like

"HEEEELP I BLEW MY ACCOUNT"
In trading, there is no bullshit. You either make money or you don't.
  • #16
  • Feb 2, 2008 9:16am Feb 2, 2008 9:16am
Good Post Highway...
Quoting highway
I have not made millions in Forex. But in general, from what I learnt from the older generation - especially those who had gone through the 2nd world war - money is no security. Anything can happen and that can turn your German marks or Japanese Yen into valueless note. Houses? The communist regimes took them over. If you don't give them the titile deeds, they hang you up on your toe !!
Material things you hang onto will only give you more worries. To up keep them , insurrances and etc. You need more and more to live up with it. Just keep your pride low. If you don't you will see the cost of keeping up with it to sustain your pride to live up to the expectations of your neighbours etc. Whether you are rich or poor, put humility as your front and be humble inside. Then you can live in REAL freedom. Whether rich or poor, prepare inside you mentally a life of simplicity. If you mind can live with living almost with nothing phsically and vis-a-vis with those around you, you have that which will give you all the peace and happiness in live. Many who have not arrive at this first, had gone on to borrowing to keep up the facade and had gone to ruins. Sort of maringale in life.
It's my opinion. I am probably not the right person to give you the answer now. I have triple $ digits loses right now on some of my stocks. Don't worry. It is 1 to 1 leverage. It is still a long way to get the $ms to zero. LOL
In trading, there is no bullshit. You either make money or you don't.
  • #17
  • Feb 2, 2008 9:58am Feb 2, 2008 9:58am
Quoting mrgreen
I only suggested the surgery cause I had it done several years go and it has improved my life considerably.
Can you recommend a good surgeon. I show the symptons from time to time.
  • #18
  • Feb 3, 2008 11:20am Feb 3, 2008 11:20am
Thank you everyone for your time and responses, I personally thank you because this thread is personally valuable to me and my own good.

By rational statistical expectancy, I did think that out of 30K registered users, only 200 to 300 people might have actually been through what I'm going through now. Out of those 200/300, a substantial amount might have been coming from a very different background than similar to mine. Thus, even though they experienced the same, they will not understand why I posted on a public forum, something of this nature and will have no clue. Those very few who would actually understand may or may not choose to response. My valid assumption was that I'll not get any response that will actually come in any help. But I got, more than plural.

I'll say, I'm honored to participate and communicate with you and just knowing you exist gives me ample hope and pride. I would not name you to embarrass you.

I've been thinking whole weekend to tackle the situation and all of your responses helped me (even the negative ones) so once again thank you for your time.

Now this is my plan of action:

1) Because I was bought up by working class parents the idea of annual/monthly income is so much bolted into my psychology that even though I know I should not think this way, I can't beat it. So, I'll be paying myself a fixed salary and the rest is not mine to touch.

2) Spiritual purification seems rather logical to avoid sudden materialistic ambition that comes as a by-product of sudden windfalls. I need to find a way to detach my belongings to own me and work it the other way around. I've been experimenting with dao and even though its not perfect but I'll put more effort.

3) Close the equity window on my broker's platform :-)

And something I want to share with everyone reading this.

To whom it may concern,

Chris Gardner happen to say this:

Quote
You got a dream... You gotta protect it. People can't do somethin' themselves, they wanna tell you you can't do it. If you want somethin', go get it. Period.
May we reach Wei wu wei
  • #19
  • Feb 3, 2008 11:31am Feb 3, 2008 11:31am
Quoting im7i4z
Thus, even though they experienced the same, they will not understand why I posted on a public forum, something of this nature and will have no clue.
i know exactly why you are posting this, its a very real issue. as you noticed, i deleted my last post in this thread. what i said was the truth, but i deleted it because i was worried my family or friends might see the post and be let in on my little secret. a working class mentality with high class pockets is something that can be very hard to deal with. thats difficult to understand for most people, they think once they are rich everything is down hill from there. i thought that at one point too.
Relax and be happy.
  • #20
  • Feb 3, 2008 11:45am Feb 3, 2008 11:45am
Quoting merlin
i know exactly why you are posting this, its a very real issue. as you noticed, i deleted my last post in this thread. what i said was the truth, but i deleted it because i was worried my family or friends might see the post and be let in on my little secret. a working class mentality with high class pockets is something that can be very hard to deal with. thats difficult to understand for most people, they think once they are rich everything is down hill from there. i thought that at one point too.
I didn't know that I thought you did something that I can't see your posts anymore! I got the message that is all to count :-)
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