"..and I am leery of traders who have never lost it all."
With all the due respect, I'm leery of this statement. Even though I get the point he's making and I guess most of the legends we read about blew up but I still believe, it's not necessary to blow up to get the right memo.
Pain teaches but sometimes depending on an individual, 'different experiences can result in similar pain'. So yes I'm leery of traders who haven't felt that excruciating pain but it doesn't mean that only way to experience this pain is by blowing up.
I agree. I wrote this previously: "I don’t think people actually need to lose every last cent to learn their lesson — just suffer big enough losses for it to really hurt. I learned mine in a similar way to David: by giving back a substantial portion of some very good gains. But I never got into any real trouble, partly through the good fortune of coming across Mark Minervini’s books and, by extension, risk management lessons early in my trading journey."
I know what you mean. I do believe many mean well, but the *real* point they're making is that you don't really understand risk management until you've suffered a loss that hurt.
More generally, it's the experiences that hurt which often shape us. Do we come back from defeat stronger, or do we give up? Bad stuff happens to us all - how a person reacts to it is what sets them apart.
Lessons to take to heart, for sure
good job
Thank you :)
"..and I am leery of traders who have never lost it all."
With all the due respect, I'm leery of this statement. Even though I get the point he's making and I guess most of the legends we read about blew up but I still believe, it's not necessary to blow up to get the right memo.
Pain teaches but sometimes depending on an individual, 'different experiences can result in similar pain'. So yes I'm leery of traders who haven't felt that excruciating pain but it doesn't mean that only way to experience this pain is by blowing up.
PTJ is PTJ but just my 2c :)
I agree. I wrote this previously: "I don’t think people actually need to lose every last cent to learn their lesson — just suffer big enough losses for it to really hurt. I learned mine in a similar way to David: by giving back a substantial portion of some very good gains. But I never got into any real trouble, partly through the good fortune of coming across Mark Minervini’s books and, by extension, risk management lessons early in my trading journey."
https://tradingresourcehub.substack.com/i/141350054/the-power-of-journaling
Thanks for the loop and I remember reading this.
I have seen quite a few people kind of glorify blowing up which I never really agreed with.
I know what you mean. I do believe many mean well, but the *real* point they're making is that you don't really understand risk management until you've suffered a loss that hurt.
More generally, it's the experiences that hurt which often shape us. Do we come back from defeat stronger, or do we give up? Bad stuff happens to us all - how a person reacts to it is what sets them apart.
Agree.
I guess we both have to just live with the fact that PTJ would've never hired us in his team if it ever came to that :-)