The $4,000 barrier
Sucess tends to breed more success. Unfortunately, the flip side is that failure tends to breed more failure.
You can suffer from what I call a 'failure cascade', where once one thing starts to go wrong, it has 'knock on' effects where you are trying too hard, under pressure, have less money and this leads to over-staking, over-extending, chasing losses etc, and things just keep getting worse and worse.
The analogy here is with a plane in a death-spiral, your panicked attempts to 'pull the stick up' just accelerate the spiral, or where there is a small crack in something, the stress starts to widen it further until the whole structure fractures.
The markets can be brutal.
You can suffer from what I call a 'failure cascade', where once one thing starts to go wrong, it has 'knock on' effects where you are trying too hard, under pressure, have less money and this leads to over-staking, over-extending, chasing losses etc, and things just keep getting worse and worse.
The analogy here is with a plane in a death-spiral, your panicked attempts to 'pull the stick up' just accelerate the spiral, or where there is a small crack in something, the stress starts to widen it further until the whole structure fractures.
The markets can be brutal.
Great post for those who suffer itZenyatta wrote:Sucess tends to breed more success. Unfortunately, the flip side is that failure tends to breed more failure.
You can suffer from what I call a 'failure cascade', where once one thing starts to go wrong, it has 'knock on' effects where you are trying too hard, under pressure, have less money and this leads to over-staking, over-extending, chasing losses etc, and things just keep getting worse and worse.
The analogy here is with a plane in a death-spiral, your panicked attempts to 'pull the stick up' just accelerate the spiral, or where there is a small crack in something, the stress starts to widen it further until the whole structure fractures.
The markets can be brutal.
