Used to losing money?

By TheWild1 at 1 April, 2008, 8:01 am, Categories : Financial Markets

This argument goes both ways. Are you used to losing money or gaining it?

Losing Money

I remember back when I first started trading and losing $100 seemed like the world was over, while making it seemed like the best thing that could ever happen; however, now these two events seem like a basically even day. At the same time I will have friends that are new to the market that still think the same. They wonder why I am not more emotionally sad/excited over these events.

Perhaps it is the fact that I know anything can happen the very next day. Sure I can make $200 one day, but who is to say that I couldn’t lose it tomorrow? An interesting concept that many people have trouble understanding.

So am I used to losing money or just know that I am good enough to make it up? If this statement is true, then am I used to making money or just know I am bad enough to lose it?

Sure you can back arguments for all these points. At the same time, there are different threshold levels for where I might still get emotionally sad/excited. I probably would be a little less than happy if I lost $3,000 in one day, and feeling on top of the world if I make $3,000 in one day. So perhaps it is the fact that I am using more money than when I first started.

Either way, if you can keep the emotions of losing or gaining a couple bucks low, then I believe it will help you: