BambinoFlex wrote: aliassmith wrote:
I think there is more to it than the STOP LOSS and POSITION SIZE formulas.
I remember MO trying to explain this to you years ago. You should really run away fast because whenever you see OPM come out somewhere you pop up and are negative about it. OPM and Moving Averages must be trigger words for you.
SPACE Is a methodology of using OPM. If you hate OPM we can call it Donational Investment Capital.
As you mentioned, what I understood is that it’s just a different way of seeing money. OPM is also the difference of your starting balance and your current balance if you’re positive. Pretty much you’re not using your own money that you put in (initial investment). TRO says the money is yours when it’s in your account. Both views are correct but the difference is how it personally affects you.
I think it’s great to understand both views and decide what’s best. All this talk about space has really added more to my toolbox. Seeing money in different ways. I can tell that OPM and space are methods developed from experience. Many times we hear “price hit my stop, reversed, and hit my take profit” by problem solving, ideas such as space can be developed.
It's more than a different way of seeing money. Its a way of protecting your business. If your business value is $100k you don't want to start the year risking large chunks of it right off the bat.
Throwing $2000 to $4000 at each attempt right away puts great risk to your business. Speeding $330 to $500 allows for some income to be generated inexpensively. This new cashflow can be used for new growth.
The goal at the end of the year is to have $100k plus after paying yourself and expenses.
This is just thinking about it as a business model.
It can be similar if you are a professional poker player.