How to avoid from digging and falling into a loss hole

There is a common belief in investment game program playing, or any sort of online money making opportunity that if you lost 50% of your fund capital, all you would need to do was make 50% and you would be back to break even.

This is not actually true. Suppose you start with $1,000. You lose 50% of this and are left with $500. You will now need to make $500 off a fund capital of $500. This means that you need to have $500/$500 = 100% winning game performance to get back to break even.

So, for every percentage point you lose, you need to make more in percentage terms to get back to break even. This is occasionally referred to as a "loss hole". You have dug and fallen into a hole of your playing losses and now need to get yourself out of it.

From a psychological point of view this is crucial. From the above example, you would have to double the size of your fund capital just to break even. That is not psychologically easy or practically easy to do. 100% winning play performance in any given year is a performance figure many players would give their right arm to have, and if you are new to playing, these sorts of winning percentage figures only come after some time spent learning the investment game program industry.

However, anyone who has done any investment game program playing will tell you that losing 50% of your fund capital is very easy to do. It does not require talent and dedication to lose 50%, on the other hand it does require to gain 50%. Whilst it is possible to do this playing investment game program, it is by no means easy.

You are also going to be stuck in a negative frame of mind, you will be playing to not make a loss, and to make break even rather than playing for profit, and the difference between these two mindsets is immense. Negative mind states are very harmful to playing and you should avoid them at all costs. Playing to not lose is very different from playing to win.

We can conclude that once you have fallen into a loss hole, it is much, much harder to claw your way back out of it. So, how can you prevent this?

We all know prevention is better than cure, the best way to never have to dig yourself out of a big hole is to never fall into that hole at first place. Here are four points you can do to minimize the chances of digging your very own loss hole:

1. Stick to the 1% rule. Never risk more than 1% on any one game. Make sure that the amount you will lose if the program you join turns to scam is always 1% or less of the value of your total fund capital. This minimizes the chance of ruin as well as the chance that you will lose all your money.

2. Never risk more than 2% of your total fund capital at any one time. If you are following the 1% rule above this means that you should never have more than 2 games with 1% risk on them, or four trades with 0.5% on them. This ensures that you will never lose more than 2% of your fund capital in one go should the programs turn to scam.

3. Have a loss cut off rule. You should stop playing if you have three loses in a row. Make sure that if you start sustaining losses you take a break, re-energize yourself and come back to playing with a fresher perspective.

4. Have a strategy with a positive expectancy. The best way to win is to not lose, ensure that the playing strategy that you are using will make money in the long period of time provided you apply it consistently.

Is there any exception to this? Well, every rule has their exceptions, and there are many ways to skin the playing cat. Some very successful strategies such as those used by experienced and veteran players can lose up to 50% of their total fund capital before they make a lot of money, those strategies lose often, but when they win they win very big.

You should always be tactical as at all of the time, you will not have some body who will help you out. So, with your own side, you need to be tactical enough to face circumstances that usually happen within the game. If you are a tactical one, you can be sure that you can win games on your own way.

As an investment game program player, you need to have the right management of everything. If you encounter problems, do not quit. Manage them in the simplest manner and see if it really made changes. Investment game program is unpredictable, you can not just see what will happen next for your play. So, you need to be constantly set to fix problems with investment game program playing. Learn the right risk and money management, as they are one of the things that a player should always keep in mind.

If you know this is what your strategy does, then you will be expecting that loss, and you will also know that you need to follow your strategy to make your online money back and profits on top of it.

If you do not know what your strategy's maximum loss that you can afford is, you really need to find this out before you start playing investment game program, as it is not certain how big the hole you may dig for yourself is. Every player must realize that, taking losses, especially taking a series of big losses is more dangerous to your fund capital than you might think.

You should always be tactical as at all of the time, you will not have some body who will help you out. So, with your own side, you need to be tactical enough to face circumstances that usually happen within the game. If you are a tactical one, you can be sure that you can win games on your own way.

As an investment game program player, you need to have the right management of everything. If you encounter problems, do not quit. Manage them in the simplest manner and see if it really made changes. Investment game program is unpredictable, you can not just see what will happen next for your play. So, you need to be constantly set to fix problems with investment game program playing. Learn the right risk and money management, as they are one of the things that a player should always keep in mind.