Hitting Equity Milestones
The Golden Rules
We all like money. And it’s nice to hit account balance milestones. £10k, £100k, £1m, £10m. If you’ve made it from trading it all feels great. But there’s an issue with this…
What happens when you hit a meaningful number is your identity shifts. And that’s a good thing in some respects. You’re seeing progress and making money. You’ve broken through a new barrier and nothing can take that away from you.
But here’s the caution.
If you’re not careful that number can be an anchor. Let’s say you made £100k. Then the next few days you slip to £92k. That probably didn’t bother you on your path from £25k to £75k but it seems to have more weight when it has more meaning. You want that account balance to be back above £100k.
It’s disappointing. And if you’re not careful you’ll start trading differently than usual to get yourself back up there. Which can cause a problem.
So here’s the solution.
Once you hit a meaningful number, withdraw a random amount.
Eg: Hit £100k, withdraw £15,787.
Now your account balance has no real ‘meaning’. And you can just carry on doing what you were doing to get you to the £100k. This works for any number btw, it doesn’t need to be £100k. Whatever number is meaningful to you right now in your trading. £1k, £5k, who cares. It’s a journey.
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