One of the things that I have thought about (and I appreciate that Rich sees this topic as key) is the situation we get to when we are risking relatively large sums on a trade (I say relatively because I’m sure we will all have different thresholds). If we are use to say trading £200 (assume it’s 3% of bank) would it feel different if it was £2000 (again assuming 3% of bank).
I know they both represent the same risk percentage but if you are ‘comfortable’ at £200 would you be ‘as comfortable’ at £2000? I’m looking forward to finding out!
Hi John, great observation! This is something I wrote about in one the eletters recently. It’s easy to get caught up in ‘percentage thinking’ but don’t forget the reality of having real-world cash on the line can certainly affect your mindset. You might find you need to scale back the amount you have at risk on each trade when you first arrive at a % level that creates a bit of mental resistance. It’s important to have complete confidence in your campaign so there’s nothing wrong with easing into bigger numbers gently and taking time to get comfortable rather than forcing the issue and potentially creating a breakdown in discipline. That’s all part of the mindset work!