Blog Home

How to Deal With the Yoyo Effect

Do you know people who have made lots of money and then they go into losing streaks?

Do you know them intimately?

What happens is that you start making money and you are happy and confident. Then you believe you can do it your way and start changing things and throwing away your rules that helped you to make money consistently.

You try to take one shortcut after another. After all, you have made the money. So you don’t need to follow your own rules. Then you start losing money, and before you know it, you are in the hole…

Does this sound familiar?

I have heard versions of this story over and over again. The reasons vary. One reason is that people get bored and they want more excitement. Another is that they want to beat the system. No matter what, the results are the same.

What can you do about it? 

  1. If you want to change things around, change ONLY one thing at a time and test it. 
  2. Don’t ignore your rules.
  3. Ask yourself is it more important to make money or be right?

 Here is to making success your habit….

Want to stay updated? Subscribe to the Mental Edge Trading blog

One Response to “How to Deal With the Yoyo Effect”

  1. Jenniffer Ujano says:

    Great post. I was checking continuously this blog and I am impressed! Very useful info specifically the last part :) I care for such information much. I was seeking this certain information for a long time. Thank you and good luck.

Leave a Reply