The Perception of Money in Trading

44 meals, 248 public transport journeys, and more than a month of gym membership.

That is what a low tier evaluation can get you in some cities in Indonesia (Numbeo). As people spend more hours on the charts, their brains tend to compartmentalise the money they make or lose in the market from money they spend off the charts.

This happens partly due to the psychological phenomena known as mental accounting. Your brain automatically tells you that $20 made on the charts isn’t the same as the $20 burger at that restaurant. It tells you that in contrast to your account size, $20 is just a drop in the bucket. One thing leads to another, and now you’re down $200, and on tilt.

However, what our brain fails to recognise on the charts is that you can make or lose that money in an instant. Money which some people are being paid hourly, you’ve just lost in less than a minute. How many times have you entered a trade and have it immediately dip into drawdown? In some countries, that tiny 0.5% drawdown can be people’s living wage. What they rely on to feed their family.

And here you are, fullporting your evaluation on CPI like it’s just another day in the office. Remember that the next time you feel like gambling on a trade just because you’re upset that your A+ entry had a statistical loss, or the next time you take a trade and it starts consolidating for hours on end.

Your $50 evaluation could feed a family for months. Don’t ever forget that. Don’t let your emotions get the best of you. If you can’t figure out your bias, close the charts, take a walk, breathe, and hop back on when price action is better. If you feel sick, if you feel like gambling, if you feel discontent with the results of your day, close the charts, take a walk, and breathe. If you wish to make this work, be a better person, be a disciplined person, and most importantly, be grateful to have the ability to earn money from the comfort of your own home.