Day 21: The Emotional Relationship with Money

This is such a great topic. I was recording with some of my friends for www.thetradersproject.com this weekend and this topic was brought up. I think it is so relevant to traders or anyone out there that doesn’t know why they can’t reach the next level financially. You may be saying “I work hard. I’m not lazy. I want it. But it doesn’t come.” I know that feeling so well.

We started in on this topic but I wanted to spend some of my time talking more about it.

SMB Blog Post Rich Trader, Poor Trader

Enjoy!

Have a great day!

Shonn

TradingLife:MoneyIsATool

P.S. The Daily Inventory Tracker Videos are now available every day in the Asia session. I do a top down analysis and give trade ideas for that day. You can find them HERE. Happy Trading

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5 thoughts on “Day 21: The Emotional Relationship with Money

  1. The title is probably not coincidental. Rich Dad, Poor Dad was my first exposure to something that radically changed the way I viewed money. It literally changed the trajectory of my life.
    Todays blog post gives me reason to delve even deeper into the subject now.

  2. After our initiation into trading we come up against the question, do we learn on demo or small live account? The first one has no money involved so is like a game, the second even if it is only a tiny amount brings into the equation money. Some would say you can’t learn on a demo as you can never replicate it when the real money is down. Others will say you can’t practice with live money because you will not focus on the process. When I started learning I struggled on demo because of the desire to win and to be successful, and now on a very small live account I’m still struggling because of that desire to win rather than the money. To me it doesn’t matter whether it’s dollars or pips, both are measures of being a winner or a loser. Now I have been starting to show some improvement in recent weeks and one of the reasons is that I am trying to develop a Scrooge like mentality to accumulating even tiny gains as described on an episode of the booker report, which is in a way, the penny pinching person you described:-) Today I made a profit of 0.8 pips which represents 12 English pence and to me that was successful, as I didn’t lose. On another episode Rob said that we make trading complex because we want to make too much money too fast, and I would add we desire to be successful too fast also, and for me, it’s not the money. However if I was suddenly asked to trade a £50000 account rather than £500 I think my focus would be completely destroyed unless I could find a way to take the pressure of. Boris Schlossberg recently wrote an article about how George Soros has been so successful http://www.bkforex.com/boris-schlossberg/the-soros-way/ . It was about how he would go all in on a huge trade, only with money he had already won, already accumulated during the year and leaving his starting capital all intact. In a way a playing with the winnings mentality takes the focus off the money that we could lose, so rather than looking at the risk or the reward we can keep to the process. For me getting frustrated with a few losses has always turned me over the edge, but as Brett Steenbarger wrote in a recent blog post, it is not the frustration that is my downfall but the frustration with being frustrated.http://traderfeed.blogspot.co.uk/2016/05/meeting-challenge-of-secondary.html It’s frustration and desire for me and not really the money until that is I have something to lose and then I may change my mind.

      1. That’s correct. It’s something in my personality, the money is a side effect, it’s in trying too hard to succeed and not wanting to fail that is my down fall. Its in everything i do and the only way to defeat it is to loose and loose and tell everyone about my failures on my blog until I dont care about it anymore. That,’s the plan anyhow.

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