Friday, 7 October 2011

Mind Being Relaxed Under Pressure?

I have written before, and one day I should really get around to some kind of an index for this blog, about the problems created when you 'need' to make profits from betting rather than 'want' to. There is a saying that scared money never wins. Bet with money you can afford to lose. Trading is an emotional activity, and being in the right place mentally is crucial.

I am reminded of this by Center Court Trading's latest post Emotional Pressure - worth reading in full, but some highlights are:
The pressure, stress and anxiety involved with full-time trading is immense, especially when things are not going well. Some of the mistakes I've made recently as a full-timer, I would almost certainly have not made as a part-timer. Why? Because there wasn't the same amount of pressure to make money or to protect what I have. You can always reload your bank if it gets blown when you are part-time but if it's your only source of income, that bank is all you have.
The anxiety of needing money can cause you to lose patience and can make you start trying different ways to make cash, such as betting on other sports, changing strategy or forcing opportunities that don't exist. People will say 'Lower your stakes' or 'Take a break' but it's not so easy to do that if it means you might struggle to make enough to survive on.
Not the recipe for success in my opinion. Play the markets part-time with money you can afford to lose. Stake sensibly, and you are more likely to make smart decisions, for example letting the winning trade run rather than locking in the profit simply because you can.

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