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.