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Shows how financial need causes traders to hold losers too long and take profits prematurely.

From What You Actually Need to Become a Full Time Trader · jumps to 2:17 · speech

▶ Open at 2:17 on YouTube
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You're forcing something that isn't there. How about a loss, right? You're losing one R. Well, our system tells us what? One R is a predetermined amount of money that we're prepared to lose right now. Before we even enter the trade, we know one R, it's 1% of our account. We're prepared to lose that. We understand the math, all that fun stuff. What happens if that one R is your groceries? All of a sudden you're like, well, I can't lose this money. I got to go buy food. So you might hold on to a trade longer than you're supposed to because you know that that one R means something in your life. So what's going to happen here is all of these pressures are going to break your process completely. You're going to TP trades before they get to their actual tape profit level because you need the money today.
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