Thursday, December 20, 2007

Imaginary Money Almost Feels Like Real Money

In the past I found it hard to take simulated trading seriously. There was no real money at stake so it was hard to take seriously the need to use a precious resource time to monitor the market closely on those trades. I didn't feel any pain of losing money, it was just an experiment to see how things worked. But now simulated money feels almost like real money. The pain and anxiety of losing money is real the euphoria of winning is real too. To a lesser degree of course than when I win or lose real money. The reason I think is that now I feel my "trading career" is on the line and I really need to improve my skills and discipline. Each bad trade I do even under simulation is taking me away from that goal and that is the emotion I am feeling. Some emotion I think is necessary to make us care about the outcomes of trading. Too much of the wrong emotions are of course very detrimental. It's a delicate balance.

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