Stocks and the Art of Synthesis

A lot comes together.

This coming-together is called synthesis.

The word synthesis has now become universal.

It is applied in various fields, including Chemistry, manufacturing and the like.

It is also applied in areas where deep thought boils down facts to unity, to arrive at a conclusion.

What all are we looking at, with stocks?

No action.

Action.

Time-frames.

Market-level.

Selection.

Entry.

Management.

Exit.

One can list other stuff, but this list should do too.

One needs to synthesize the ingredients in such a manner, that the resultant matches one’s risk-profile. [[Why? Matching means successful market-play. Try it out.]]

That, my dear friends, is the art of synthesis, in a nutshell.

 

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What’s that other fellow doing?

The human being is nosy.

Maybe curious is a better word.

Problem is, this one characteristic is enough to make one fail in the market.

Curiousity is a good thing. At the right time and in the right area, yes.

Curiousity is a bad thing at the wrong time and in the wrong area.

However, that’s how we are wired. We like to know what that other fellow is doing, the one who is successful. We want to do the same thing. We want to ape the success. Whether we know anything about that other fellow’s field or not becomes secondary.

That’s when the walls begin to crumble.

Know your field.

Develop it.

Be curious in your field.

Succeed in your field.

If you don’t, after trying repeatedly, change your field.

Find a field that you’re successful in.

If one successful field doesn’t fulfill you, develop a second field.

However, just because your best friend hit the jackpot in his field, don’t move over to his field and expect to hit the jackpot too.

Unfortunately, we show that kind of behaviour again, and again and again.

That’s human nature.

A prime example comes from the stock market.

At the end of a boom, the last ones holding the hot potatoes (stocks that have gone up too much) are the “pigs” (retail traders and investors who buy at exorbitant prices after getting lured in by the successes of the earlier parts of the boom), who then get slaughtered. This is common stock-market jargon, by the way. It has gotten so streamlined, because it has happened again, and again and again.

If you’re doing stocks, do stocks properly. Make stocks your life’s mission. Or, don’t do stocks. Period. There’s no in-between to being successful. Success in stocks, like success in any other field, demands your full attention. Don’t do stocks just because the other fellow made a killing in stocks.

Memory is weak.

Give the bust a few years, and a whole new set of pigs launch themselves at the fag end of the next boom.

Right.

Slaughter.

You’re not a pig.

Know your field. Stick to it. Succeed in it. Period.

What are your Millions Worth?

Sure, today they’re worth…

…millions.

Nobody’s taking that away from you.

However, tomorrow is a different story.

What will be the shape of your wealth in the far future?

In what form will it be stored?

Identify that now.

Why?

Because you can start pickling away in that form, little by little, right away.

Moving a chunk in one shot is tricky.

You don’t do it unless you’re absolutely sure.

You don’t bet the farm – on anything – period.

You need to move things quantum by quantum, over decades perhaps.

Final destination needs to tally with your risk-profile.

If it doesn’t, you’ll end up being jumpy and uncomfortable, and you’ll make a mistake.

When it’s about your life-savings, there’s no margin for error.

Why has one taken such a large chunk of time into the equation?

You see, when time is expanded long enough, difficult problems becomes easy to solve, because one ends up actually taking time (read pressure) out of the equation. Time is quasi infinite, so one doesn’t worry about it anymore. One has TIME to think things over and decide at leisure.

Also, over the course of a large chunk of time, you might realize that your risk-profile has changed, and that you are not comfortable with the final destination anymore.

That’s fine.

Change the final destination.

You define the rules, remember.

The bottom-line is that in whatever shape and form your wealth is stored in the end, that shape and form needs to address everything you wish that wealth to do and be.

There’s a lot of thinking that needs to go into this.

Do that thinking now.

It pays to be financially literate.

Nobody really teaches you financial literacy in school or college. Bookish knowledge is not financial literacy. Field knowledge is.

You’ve got two options.

Get financially literate on your own by playing the field, making mistakes, and learning, or…

…find someone who is already financially literate, and learn from him or her, from his or her mistakes.

Whatever you do…

…do it now…

…to ensure that your wealth not only remains intact…

…but also continues to grow.

What do you Want?

Is this one easy?

What do you think?

If this one were easy, we’d probably have no wars.

We’d sail from one fulfillment to another, without squabbling.

Life would be a breeze.

However, things are different on the ground.

We don’t talk to ourselves.

That’s why, for the longest time, we don’t know what we want.

Open the intrinsic dialogue.

Why is it not opening?

We’re so busy addressing the outside world.

We don’t even know perhaps, that a much more meaningful world exists – inside.

That’s the one more worth discovering, actually.

It contains the information about what we want.

We need to extract this information.

How does one do that?

Everything starts with a first step.

So, open the dialogue, yeah, the intrinsic one.

See where it goes.

You like exploring conversation on the dinner table, right?

Why don’t you try exploring conversation here, inside of you?

Next step is hit and try.

You’re in a new world.

Paths have not been defined. Define them. See what works. Discard what doesn’t. From the inside, go outside. If internally you feel that something might work, try it externally.

Keep trying and discarding.

Eventually, something sticks.

That what sticks is what you want.

Once you’ve discovered the groove, you can keep using it to discover more and more of what you want, till the groove stops working.

Then you go about creating a new groove.

Happy Searching!

🙂

When it Rains Learning

Yeah, when does it…

…rain learning?

You probably might not like what you hear.

Are you used to solitude? Working on your own? Own decision-making?

Or…

…do you look for approval?

…all the time?

We spoonfeed our loved ones when they ask us for help. I’m guilty of this too.

However, in my solitude I did realize, that spoonfeeding is the sworn enemy of learning.

What is learning?

Inculcation to the extent of translation into DNA – that’s learning.

It’s an intrinsic process. Yes, everything about learning happens inside.

When does it rain learning?

When you’re dependent upon yourself for your decisions, that’s when.

One wrong step could break you, so you’re cautious.

Your system is working at full-stretch.

It’s an intense time.

That’s the melting-pot required for DNA translation.

A wrong decision causing loss is rich in learning.

It can also cause depression. However, you know better. You get up, learn, and move on.

A right decision causing profit boosts confidence.

It can also cause euphoria, which offers an entry door towards destruction.

However, you know better.

 

 

 

 

 

 

Trigger Vigour

Can you pull a trigger?

Or do you hesitate?

Are you afraid?

This is vital stuff, and you need to recognize this about yourself.

Why?

We’ll go into the why some other time, but let if suffice for now to say that trigger dynamics are part of basic risk-profiling, and if one’s market movement is not as per one’s risk-profile, things generally go wrong.

Back to triggers.

Cast aside pulling, are you able to recognize a trigger?

What comes before recognition?

Definition.

Have you defined market triggers?

Everyone has a different definition of when to act.

You need to know when you are going to act.

No ifs, no buts, just clear-cut action.

Your system will tell you that it’s time for action.

You do a double-check.

Are you recognizing what your system is telling you?

Is what it’s telling you recognized by your mind as a time to act?

Yes?

Then act.

What is the action, you ask?

Hmmm.

Why are you asking that?

You have to define the action too.

Just like you defined the conditions for action, you also define what exactly the action is going to be.

When you act, you pull a trigger. The quantum and style of your action is your follow-through after the trigger is pulled.

Make it mechanical.

As much as possible.

Dance the Bawwdy Music!

..dance the body music

makes you feel so happy

dance the body music

music makes you happy

hear the music play

feel your body sway

hear the dj say

oh what a big smash big smash

dance the body music…

 

Osibisa, was it, late ‘70s?

Yup. 

What an cool swingy number, sung by an unforgettable band!

Disco beat. Rhythm. Easy peasy lyrics. Synth. Floor’s going crazy. Song’s all over the people. People are all over the song. 

Euphoria. 

Why are we talking about it?

Music or euphoria?

Euphoria. 

I used the music element to paint a picture of euphoria in your mind.

What is it about euphoria?

Why does it push me on alert?

Is it that I don’t wish to enjoy my life?

What could I have against euphoria?

I’ll tell you. 

Before I tell you, I’d like to mention that I love the feeling. 

It fantastic being in the feeling. I’ve got one eye on my alerts though. 

WHY?

We make our biggest mistakes when hit by Euphoria. 

Yes. 

Surprised?

Don’t be. 

Under the influence of Euphoria, our biochemistry is so, so different. 

We’re far from peak. 

Our defences are down. 

We are highly capable of plunging into…an abyss…oblivion…call it what you feel is befitting. 

We let go of safety. 

We bet big. 

We bet dangerous. 

We bet the farm.

That’s what euphoria can do to us. 

I do feel euphoric, at times. 

A trade’s gone well. 

A deal’s come through. 

Stability at home. 

Euphoria. 

However…

…as I told you…

…one eye is on my alerts. 

If even a single thought emerges of betting big, bigger than my normal size, well, my predefined red-alert also goes up with such a thought. 

I see my alert’s red flare, and the unwanted thought subsides. 

I am able to sick to within the confines of my position-size rule.

If even one thought emerges of trying a new untested line, just because all current lines are doing ok, well, my predefined strategy saturation alert also goes up with such a thought. 

I remind myself that I’ve decided upon financial strategy saturation, and don’t plan to add a new line, at least not in a hurry or upon an impulse. 

I’m able to stick to my strategy saturation decision. 

Are you understanding what I’m trying to tell you?

If yes, I’m so happy for you. 

You’re not leaving it for later. You’re understanding it without being hit by the aftermath of a decision taken under the influence of euphoria. 

Cheers mate!

🙂