After I posted last night, I went on to do a little more trading. I learned two things: One, I need to maintain a strong clear mind uninhibited by the temptations of profit or the lamentations of loss. If I can do that, I am one step closer to success.
Two, minimizing leverage can do wonders for a good position. Not only does it provide you with quite a bit of leeway should the position not do exactly what you plan at exactly the moment you plan it, but it also limits something I'd like to the "real money" effect.
The "real money" effect occurs when you're doing something (normally playing a game) that you are relatively competent at. You know the rules, you know what you have to do in order to win, etc. However, because "real money" (in quotations because different people consider different amounts to be significant) is involved you lose touch with those rules needed to succeed. Your mind is no longer on the game, but on the money. And because of that, you end up doing stupid things you normally wouldn't do, losing you money.
Take care everyone.
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