That’s true.
Some gamblers feel like all they need to do is create a limit or a gambling budget, without realizing that creating a budget or limit is one thing, as a matter of fact, the easiest part of portfolio management, the most important part still boils down to adequately managing one’s emotions, because that’s what determines whether or not we can stick to those limits. I think if we can have total control of our emotions, it wouldn’t really matter whether we set a budget or limit or not, as long as we can realize when is the right time to stop or proceed, we’re good to go.
The truth is that if you can manage your stake, which means controlling your limit, you can control your emotions. Most of the time, emotional problems are caused by improper gambling. When a gambler exceeds his betting limit, he loses control of his emotions.
No gambler can be happy if he loses a bet, no matter how small the stake, let alone if he loses more than his limit. Exceeding the stake indicates that a gambler has exceeded the amount he can bear.