Thursday, April 23, 2015

Don't Think Money - Think Points


Following on from minimizing your exposure, we come to your relationship with money.
Whether we like it or not, money is highly prized in our society. It's important. And we attach a lot of
feeling to it.
How then will you feel when you see hundreds of dollars (perhaps thousands, depending on your
account size) go up in smoke in front of you?
The problem is, "expenses" are part of the game. You have to lose some to win some more. There is
no holy grail, like we said before.
If you can't change your relationship with money, then just don't think about it. Focus instead on
numbers.
Think "percentage of trading account". Think "average risk-to-reward ratio". Think "potential profit
points versus maximum points risked".
Concentrate on getting the numbers right and the money will take care of itself.

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