Marc De Mesel: Why I Correct Mistakes Fast

  • Thursday, 21 November 2019 03:41
As if I don't, I likely will lose more money and even if I win money, it will learn me the wrong lesson. I try to ignore whether a position is at loss or profit, as it is of little importance. What is important is that your portfolio is composed well, that your investments have positive risk/reward ratio, that bet size is correct. Trying to get out a wrong position at a profit, may turn a small loss into a big loss. And you won't have strong hands to hold through as u know it is a bad or too risky investment. The worst thing that can happen to you is make money by sheer luck rather than having build expertise, having an edge, taking on great risk/reward ratio & favorable odds, as you get rewarded by doing something random or wrong and therefore will likely do more of it, taking sooner or later everything away that u build. It's how gambling houses are very likely to make money, as gamblers are happy to take on bad odds in exchange for quick win, and against all odds do get lucky sometimes, even very lucky. But human nature makes them not to walk away with their gains. Instead they get addicted to the adrenaline rush of winning and start to believe he must have some edge, some godly power that makes him win, and so he pushes his luck, betting more and more on even less likely odds, and goes bust with mathematical certainty sooner or later in spectacular fashion. So I correct mistakes quick as even if I win against the odds, it would be bad for me. Thanks for great question ChimpZoo: https://twitter.com/ThinkingBitmex

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