Episode 5: Screw self-esteem. Making money is more important.
Episode 5: Marty Schwartz
What are you seeking in trading?
99% of people would answer, "asset management."
Or making money.
But 95% of the people who answer that are lying to themselves.
That becomes clear at moments of heavy losses.
A trader named Marty Schwartz puts that lie into words as
"I stopped caring about pride. Making money is more important."
These words express it.
（Source: http://financial.harbor-tokyo.com/report/marty_schwartz.html）
There are particular things you must do to earn money in trading,
and you can easily find information on the internet.
As introduced in Episode 4 of this series, what is needed to earn money
"Cut losses quickly, take profits patiently, keep positions small, follow the rules without hesitation, and know when to change the rules."
If you faithfully execute this like a robot, your asset management will naturally go well.
With an excellent strategy added, there is nothing more to say.
But the undeniable fact is that 95% of investors do not win.
When phrased simply, these actions are actually very painful to perform.
Why is that?
That is where Marty Schwartz's words shine.
In other words, 95% of traders choose the small pride of not wanting to admit a loss or a defeat in trading over accepting the loss.
That's why they lose money.
Have you ever seen how quickly a trader who really focuses only on making money cuts losses?
"Huh? If I hold out a bit longer, the market might turn again..."
is the speed at which they want to say it.
In this case, rather than losing, they want to hold funds for the next opportunity,
and they think, the market in front of me could go either way, so it's a waste to leave money on the table.
They don't care about losses or previous setbacks.
They treat them as necessary expenses.
If you put your pride first and cannot admit failure or cut losses, you cannot increase your assets.
This column does not provide specific tools or trading methods, but
you can find useful information by asking questions on the blog.
Writer: Yusuke KurodaProfile: FX information product trader. While working, I gained freedom from money anxiety through FX and binary options.
Blog: FX Information Product Trader – Verification & Review Site
