Psychoff Bank Management Example Discussion

[JustLukeYou]

So I just read a very interesting interview with Psychoff. In it he says two important things I think will impact every trader and other people will be interested in.

1. He said that he worked as Psychology Officer, where his name comes from. He tried football trading because he always enjoyed watching football but he lost all of his first bank which sounded like all his savings and he promised his wife that he would never trade again. However, a colleague offered to invest the money for him to try again and since then he has been very successful. But the factor I struggle to understand why he started or always felt needed to trade with a lot of money. He said he started out at £100 a trade. Why did he feel it necessary to have this much money. He said his most profitable trade was £32k so he must have been re-investing his profits into a bigger bank so why did he not start out with a £10 bank instead of around a 1,000 bank.

2. He says that he typically trades with around 3-5% of his bank which does make a lot of sense. However, let's say trader takes 3% of their bank and makes 20% profit the overall bank has grown by 0.6% in one day. Is this typical, compounded I calculate it would take 117 days to double the bank of consecutive wins.

Other traders have said they blew their first bank and considered quitting so does anyone have more guidance or information on this. Is the key to be realistic and not chase losses? Are there any other factors that are essential to growing a bank effectively?

[spreadbetting]

1. I'd imagine he started with £100 trades because he could afford it and it may have been in line with his betting activity at the time. I can see why some people want to trade in 10p's when they're starting but when I started I used decent stakes as trading in pennies gave me no insight or worth. I guess many of us drifted into trading rather than seeing as part of some masterplan that needed to be planned to the nth degree so simply used stakes we were used to betting in.

2. You have to remember that traders do many markets in a day and may well be increasing the bank by over 0.6% each day.

Banks are a very subjective term as banks can always be built back up if you have an income. I have a set amount in my account and can't remember the last time I made a deposit but if I somehow blew it I'd just top it up from my bank account and assume most traders/gamblers would do the same. Of course you shouldn't chase losses and have realistic expectations but few new traders, or punters, follow the plan and learn the hard way. Once you've blown a wad chasing you usually learn not to do it again. If you haven't learnt after a few big chasing losses you probably never will.

[Speculator_3]

So I just read a very interesting interview with Psychoff. In it he says two important things I think will impact every trader and other people will be interested in.

1. He said that he worked as Psychology Officer, where his name comes from. He tried football trading because he always enjoyed watching football but he lost all of his first bank which sounded like all his savings and he promised his wife that he would never trade again. However, a colleague offered to invest the money for him to try again and since then he has been very successful. But the factor I struggle to understand why he started or always felt needed to trade with a lot of money. He said he started out at £100 a trade. Why did he feel it necessary to have this much money. He said his most profitable trade was £32k so he must have been re-investing his profits into a bigger bank so why did he not start out with a £10 bank instead of around a 1,000 bank.

2. He says that he typically trades with around 3-5% of his bank which does make a lot of sense. However, let's say trader takes 3% of their bank and makes 20% profit the overall bank has grown by 0.6% in one day. Is this typical, compounded I calculate it would take 117 days to double the bank of consecutive wins.

Other traders have said they blew their first bank and considered quitting so does anyone have more guidance or information on this. Is the key to be realistic and not chase losses? Are there any other factors that are essential to growing a bank effectively?

If he started trading with 3-5%, then his starting bank was higher than £1000. Probably between £3000-5000 (I think he stated this somewhere).

I guess he started with this much for a simple reason - he could afford it, and he also had prior trading experience. From what I understand, he was successful with trading already - but he then became overconfident and careless, which led him to losing it all.

Why don't you ask him yourself?

[ShaunWhite]

I think sb has got it. Staking needs to be enough that you care but not so much that you do care. £100 (esp £100 of someone else's money) was probably the right amount to make him focus and with £100 stake he'd probably have an exit planned that didn't risk anywhere near all of it.

When you say 3% of bank, was that stake or maximum risk? If you've got a grand then +/- 30 quid seems about right but you might be using a stake of a couple of hundered. But as sb says it's about turnover and he'll have been doing maybe dozens of trades a day, or more.

With banks then they're simply the amount you want to invest in your venture. If you opened a shop and didn't get customers you wouldn't keep it open and keep paying rent. Likewise if trading isn't working you wouldn't keep throwing good money after bad. The good news is that losing a bank when trading should be a slow process which gives you time to be considered rather than punters who'll maybe blow it in one go and be tempted by a quick top up. I always tried to treat trading like a business, I decided early on that I'd invest a max of £x,000 which would include working capital, software and TV subscriptions etc etc etc. When it was gone it was gone and I'd stop. So I looked after it much more carefully than if I could just keep topping it up. The key to being realistic is to be honest with yourself and man enough to stop when it's not working rather than ending up in the gutter.

[JustLukeYou]

Great point guys!

He did say he sometimes does 1,000 trades a day but I am quite baffled by that because that seems to be the opposite to the system he uses.

He talks about watching matches an identifying the correct results. So for example on Sunday, he would watch Man Utd and Liverpool. He would see that Man Utd are on top and would score first and then trade out for a profit instead of losing his money when it finished in a draw. I struggling to understand how he can execute a 1,000 trades in one day doing that.

[Speculator_3]

Great point guys!

He did say he sometimes does 1,000 trades a day but I am quite baffled by that because that seems to be the opposite to the system he uses.

He talks about watching matches an identifying the correct results. So for example on Sunday, he would watch Man Utd and Liverpool. He would see that Man Utd are on top and would score first and then trade out for a profit instead of losing his money when it finished in a draw. I struggling to understand how he can execute a 1,000 trades in one day doing that.

I understand he is also doing a lot of scalping which contributes to his 1,000 trades

[JustLukeYou]

Great point guys!

He did say he sometimes does 1,000 trades a day but I am quite baffled by that because that seems to be the opposite to the system he uses.

He talks about watching matches an identifying the correct results. So for example on Sunday, he would watch Man Utd and Liverpool. He would see that Man Utd are on top and would score first and then trade out for a profit instead of losing his money when it finished in a draw. I struggling to understand how he can execute a 1,000 trades in one day doing that.

I understand he is also doing a lot of scalping which contributes to his 1,000 trades

Okay, I have tried looking into scalping but I can't see how you can defend your position. If the market turns against you very quickly you might lose £100 but only make £1 per trade.

[Derek27]

Great point guys!

He did say he sometimes does 1,000 trades a day but I am quite baffled by that because that seems to be the opposite to the system he uses.

He talks about watching matches an identifying the correct results. So for example on Sunday, he would watch Man Utd and Liverpool. He would see that Man Utd are on top and would score first and then trade out for a profit instead of losing his money when it finished in a draw. I struggling to understand how he can execute a 1,000 trades in one day doing that.

I understand he is also doing a lot of scalping which contributes to his 1,000 trades

Thanks for raising yet another topic S3.

[Derek27]

Great point guys!

He did say he sometimes does 1,000 trades a day but I am quite baffled by that because that seems to be the opposite to the system he uses.

He talks about watching matches an identifying the correct results. So for example on Sunday, he would watch Man Utd and Liverpool. He would see that Man Utd are on top and would score first and then trade out for a profit instead of losing his money when it finished in a draw. I struggling to understand how he can execute a 1,000 trades in one day doing that.

I understand he is also doing a lot of scalping which contributes to his 1,000 trades

Okay, I have tried looking into scalping but I can't see how you can defend your position. If the market turns against you very quickly you might lose £100 but only make £1 per trade.

You're fast becoming, if not already, the jack of all trades but the master of none. Don't you think you might achieve more if you chose your best approach and learnt about it in detail rather than spending 10 minutes on each one, learning nothing and moving on?

[JustLukeYou]

I understand he is also doing a lot of scalping which contributes to his 1,000 trades

Okay, I have tried looking into scalping but I can't see how you can defend your position. If the market turns against you very quickly you might lose £100 but only make £1 per trade.

You're fast becoming, if not already, the jack of all trades but the master of none. Don't you think you might achieve more if you chose your best approach and learnt about it in detail rather than spending 10 minutes on each one, learning nothing and moving on?

Derek27, I have got some useful information on how to view and manage a bank.

[BetBuddy]

Great point guys!

He did say he sometimes does 1,000 trades a day but I am quite baffled by that because that seems to be the opposite to the system he uses.

He talks about watching matches an identifying the correct results. So for example on Sunday, he would watch Man Utd and Liverpool. He would see that Man Utd are on top and would score first and then trade out for a profit instead of losing his money when it finished in a draw. I struggling to understand how he can execute a 1,000 trades in one day doing that.

I understand he is also doing a lot of scalping which contributes to his 1,000 trades

Okay, I have tried looking into scalping but I can't see how you can defend your position. If the market turns against you very quickly you might lose £100 but only make £1 per trade.

When scalping you are looking for very stable markets/selections and will scratch a large number well before the market/selection turns against you.

[Jukebox]

Okay, I have tried looking into scalping but I can't see how you can defend your position. If the market turns against you very quickly you might lose £100 but only make £1 per trade.

Luke, you say you tried to look at scalping - this suggests you didn't actually look at scalping.
It didn't however seem to stop you drawing some silly conclusions.

You really might be better off at a gambler's rather than trader's forum.

[ShaunWhite]

Oh fuck I just realised who the OP is. I'd promised myself not to get involved with him because it's an utter waste of time. I've got a horrible vision of being on my death bed and thinking how swimming with dolphins never got done because I'd spend that time 'educating' this joker.

[Derek27]

Okay, I have tried looking into scalping but I can't see how you can defend your position. If the market turns against you very quickly you might lose £100 but only make £1 per trade.

You're fast becoming, if not already, the jack of all trades but the master of none. Don't you think you might achieve more if you chose your best approach and learnt about it in detail rather than spending 10 minutes on each one, learning nothing and moving on?

Derek27, I have got some useful information on how to view and manage a bank.

That was the one piece of information you were missing.

[Jukebox]

Oh fuck I just realised who the OP is. I'd promised myself not to get involved with him because it's an utter waste of time. I've got a horrible vision of being on my death bed and thinking how swimming with dolphins never got done because I'd spend that time 'educating' this joker.

LOL On your Fucket List to give you time for you Bucket List