BarroMetrics Views: A View of Mortality
Let me begin by thanking Ms Ana Wang for stepping in yet again when I needed your support. You did a sterling job. Let me also thank those that dropped me e-mails; I greatly appreciate your posts.
Turning to this blog….
September was a month in which I faced the truth of my mortality:
- Two friends (in their40’s) died of heart attacks
- A business acquaintance (60’s) underwent an operation for a brain tumour.
- A loved one (80’s) went into hospital for emergency treatment and as her specialist said: “It was a miracle she recovered”.
What the events have brought home to me is we humans often defer ‘to a tomorrow that never comes’, the decisions and actions that may bring our dreams to fruition. This is especially true of trading.
When you think about it, trading success is not that difficult:
- Create a strategy and set of rules that places the probabilities of a trade on our side.
- Manage the risk of each trade because the edge in (1) is seen over a large sample size rather than on a trade by trade basis and
- Learn from our trading history, lessons about ourselves and the markets.
Nevertheless according to one NFA survey over 90% of newbie traders can expect to lose so much of their initial capital in their first six to nine months that they need to top up the account or to stop trading. Why this is so and what we can do about it, I’ll consider tomorrow.