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Why do you trade? What motivates you? To many traders, the answer is obvious. We trade to make money. Many traders, however, say that they would trade even if they merely earned a livable wage. For ex ..

Do you ever dream about winning the lottery? There are actually people who have such good luck that they repeatedly enter contests and win. They win so often that if they wanted, they could count on w ..

After months of trading in a slump, Jake tells his best friend, “I think I want to quit the trading business. Why am I doing it? There must be a better way to make a living.” Have you ever ..

If you want to become a winning trader, you must be willing to face loss after loss without letting it get you down. Upon facing a loss, our first inclination is to feel disappointed, but how you reac ..

Jim has had five losing trades in a row for a total loss of 25% of his account balance. He could feel defeated, pout, or get angry, but instead, he’s excited about his future prospects. ThatR ..

Everyone likes to win, but is a need to win merely an attempt to avoid losses? Success requires facing setbacks nonchalantly, but there may be some traders who imbue losses with great psychological sy ..

Humans are risk-averse. We don’t like losses, and we’ll do almost anything to avoid taking them. Losses are painful, and there’s a strong need to seek out pleasure and avoid pain. It ..

To your surprise, you’ve just lost $1,000. Naturally, you feel guilty and angry. You wish it didn’t happen. You try to justify it: “It’s just the tuition you pay to become a ma ..

16.1 Overview In chapter 6 & 7, we discussed the basics of a mutual fund and how a fund works. Just to recap, a mutual fund is a pooled investment vehicle that takes your money, invests and manage ..

Jim has just taken a big risk and lost. He has been watching a stock for the past month and it’s been going down. But today an earnings report was released. Yesterday, Jim had a strong hunch that ac ..