Well, somebody’s got to ask these questions…
Don’t see very many around me doing so, so I just thought what the heck, let it be me…
This one’s not for all you test-tube jocks in the lab, you know…
Answer’s not about the math really; it’s more about feeling, again…
Nevertheless, this is a very important question.
Answer it wrongly for yourself, and market-play will wreck your life – all avenues of your life, that is.
And, answer it correctly for yourself – lo and behold, you’ll actually start enjoying your market activity.
The human being ultimately excels in anything he or she enjoys doing.
This means that if you answer this question correctly, your market activity will yield you profits.
Told you. This question is important. Answer it.
Let me tell you how I’ve answered it for myself.
Before that, please understand, that my answer doesn’t have to apply to you.
However, for those who don’t know where to begin while trying to answer the question, it’s a start.
I detest giving Mrs. Market too much power. This was my clue initially, and I built up on this fact.
Initially, Mrs. M used to take over my life. She used to govern my emotions. It started to rub off on my family. I knew I had to draw a line.
I started to trade lightly – amounts which my mind could ignore. Then, I did one more thing.
I started to connect minimally. The was the key step, and it swung the emotional tussle in my favour. Mrs. M’s days of emotional control were over.
What does minimal connection mean?
You only connect when you have to. Period.
When you don’t have to connect, you just don’t.
I’ll tell you when all I connect to Mrs. M.
Order-feed – 0 to once a day. Very rarely twice for this in one day.
Connection for me is having my trading terminal on, and seeing live price-feeds face to face.
My market research is all offline, so that’s not a connection for me.
Squaring-off a position – again 0 to once a day. Very rarely twice a day.
Watching the live price-feed – 0 to once a day, and only if if I’m unclear about the buying-pressure versus selling pressure ratio.
When I don’t identify a potential trade in my offline research, I don’t connect at all.
When do I connect next?
Whenever I’ve identified the next trade, or a squaring-off situation, all offline.
There can be two or even three day stretches when I just don’t connect.
I use options, because they allow me this kind of play for Indian equities.
Why am I stressing upon the value of minimal connection?
Connection means exposure to the “Line”. You’ve met the Line before. If not, look up the link on the left (“The Line”).
Connection to the Line taxes your system, because market forces interfere with your bio-chem.
Keeping the connection minimal keeps you healthy, and you can go out and do other stuff in life, which rounds you off and refreshes you for your next market-play.
Keeping the connection minimal detaches you from Mrs. M. You are able to detach at will. This lets you focus on your family when your family members require your attention.
Keeping the connection minimal makes the task of swallowing your small losses smoother.
Lastly, keeping the connection minimal helps you let your profits run.
So, how does one define minimal?
Do the math, and come out with rules for your minimal connectivity, like the ones I’ve come out with above, for myself.
After that, while sticking to your rules for minimal connectivity, only connect to Mrs. M when you feel the burning desire to do so, like for example upon the identification of a sizzling hot trade, or for the order-feed of a trigger exit after a profit-run or something like that.
Yeah, you minimise even after your rules.
That’s your minimal connection.