- If you’re out of balance, you’re going to make bad decisions, and trading the market is a decision game
- If you’re overtrading, you’re out of balance
- If you’re overcommited, you’re out of balance.
- If your dollar risk is too high, you’re out of balance.
- If you’re hung over, you’re out of balance.
- If you’re sick, you’re out of balance.
- If you need the money, you’re out of balance.
- If you make too much money, you’re out of balance.
- You’ve got to take time off. You can’t trade every day.
- Pay more attention when you account size gets bigger
- I’ve noticed over the years that when my account has been small for whatever reason, I have been really careful with it. I watch it like a hawk. When my account gets rich, I tend to fall into a habit of neglect. I’m making money. I have profits, and I’m more comfortable. I don’t keep as close an eye on it. That’s very foolish.
- Take profits out of your account
- You should spend some profits rather than letting the money stay in your account indefinitely. That’s been important to me over the years. I withdraw money from time to time and take a vacation or buy a new car. From a behaviorist’s standpoint, it gives a sense of reward. It provides conscious and subconscious motivation.
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