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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Adding No-Action to your Repertoire

Action with positive outcome vs…

… no action vs…

…action with negative outcome…

…hmmmm.

Sometimes we become oblivious to actions with negative outcomes.

Society preaches to be active.

We listen.

We feel that doing something means a step forward.

Well, it ain’t necessarily so.

Many times, and especially in the markets, it actually pays to do nothing.

The most successful investors in the world will tell you, that the biggest money is made while sitting. They’ll also tell you, that almost no one has learnt how to sit.

They’re right.

Meanwhile, I’m telling you, right here and right now, that you can sit comfortably upon your investment without jumping only if you’ve bought with margin of safety. Think about it.

Also, the most successful traders in the world will tell you that the number one action that saves money in the markets is no action. Yeah, when markets move sideways, which is about 60%+ of the time, trades tend to get stopped out both ways, and the trader loses money repeatedly. At such times, it’s better not to trade.

What’s vital here?

Recognition.

Recognize that it’s a time for no action.

Then, do something else.

For this to be practical, make trading and investing your bonus activities.

Meaning, that if your bread and butter depends upon another mainstream activity, you can easily switch off from trading and investing for a while, at will, and without any negative impact upon your basics.

Also, you need to be versatile enough to have fall-back activities lined up, which switch on where trading and / or investing switch off. These need to take over then, and keep the mind occupied.

The danger of not going into no-action mode is the continuous committing of actions with negative outcomes.

That’s precisely where we don’t want to be.

 

 

 

 

 

 

 

That nagging nagging push towards action 

Yeah, it’s always lurking… 

… in the background…

…waiting for an opportunity… 

… to catch you unawares… 

… and spring to the forefront. 

Market-play is a mental battle. 

Your mind wins or loses it for you. 

Make your mind understand the value… 

… of action… 

… and of inaction. 

Make your mind pinpoitedly choose… 

… the time for action… 

… and for inaction. 

Make your mind automatically switch from…

… a state of action… 

… to a state of inaction… 

… and vice-versa… 

… and feel perfectly normal doing the switch… 

… again and again and again. 

The above by itself is a winning state of mind for you, which you can build upon. 

🙂 

The Promise of Far 

I like “far”… 

What promises me far? 

Science fiction films. 

The Interstellar, Gravity, Inception and Contact types. 

Such films relax me. 

What relaxes you? 

Have you identified it? 

Why is this important? 

Many times, we must just sit. 

Action is harmful at such times. 

We are tense. 

We suffer from the fallacy, that action is better than inaction at all times. 

Relaxation-source identification is exactly for such times. 

Go ahead. 

Get your acts together. 

Your full acts. 

Your planning needs to incorporate strategies for inaction too. 

The Promise of Far”  strategy works well for me.

It’s not my only inaction-strategy. 

However, it’s a successful one. 

Action Oblique Inaction Upon Field-Proof

You.

Field.

In.

No theorizing.

Just get into the field.

Act upon field-proof.

Or, don’t act…

… upon field-proof.

That’s just about it.

There’s a time for theory.

It’s to tune your mind.

Learn the ropes.

Baby-steps.

Away from the field.

So you’re yet safe.

Fine.

That stage gets over.

The onus is on you.

Real world is different.

It’s not like theory.

If it were, everyone following theory would be a billionaire.

Today’s professors don’t even put their own money on the line.

If you don’t get a feel for the LINE, your paper-knowledge has no value whatsoever.

On the field, LINE is big. Very big. You have to handle the line well. Otherwise, your money’s gone.

So, gauge the field.

What proof are you observing?

Is it compelling you to act?

Yes?

Act. Forgot about everything else.

Is it compelling you to sit still?

Yes?

Don’t act. Sit still. Forget about everything else.

Carve your own dazzling destiny.

🙂

Constant Activity doesn’t necessarily mean Progress

Beware…

…of the urge to…

…constantly remain active.

The times preach it.

Maybe it was valid for different times.

Today, sitting still is an asset.

Many things happen while one sits still.

Systems cleanse.

Systems rest.

Space is created.

Recuperation is paramount.

Strength is built up, to come out firing on all cylinders another day.

Lack of activity thus becomes a secret weapon.

Weapons are double-edged.

If you’re not careful, they cut your skin from their other side.

We guard…

…against unnecessary food…

… and drink…

…laziness, sloth, mental over-zealousness, gossip and / or any kind of evil…

… while we’re inactive.

If we let such cracks seep in, it’ll have been all for a waste.

We’re not going to be inactive and be called a waste, because that’s a double-whammy.

We’re going to be pinpointedly inactive, and still be more productive than the 24×7 active ones.

We’re going to lead a good, full life with activity amidst productive periods of inactivity.

Yeah.

Do You Know What the Most Underrated Activity is?

C’mon, try guessing at least… 🙂

Yeah…

… doing nothing is the answer, in my opinion. 

We want to move. Be active. Do this. Do that. We’re a “doodat” society. 

For us, activity has become synonymous with achievement. 

How wrong is that?

Completely. 

One can be active…

…and be achieving zilch. Nix. Nadda.

The moment we realize this, the value of doing nothing dawns upon us. 

What are we achieving by doing nothing?

A lot. 

Believe me. 

A lot a lot a lot. 

For starters, we are not taxing our eyes with media. That’s one of the greatest side-effects of doing nothing. Our eyes take a hit in today’s media-packed world. Doing nothing gives them a very valuable break. 

Furthermore, while doing nothing, we are perhaps watching our thoughts and not reacting to them. Or, we are listening to our breathing pattern. These two activities fall under the category of “meditation while doing nothing”. 

So now, doing nothing is a form of meditation…wow! Already we are moving in higher circles. 

While doing nothing, we are refraining from most or all activities, and these include all negative activities, so we’ve got our Karma-usage pretty much on hold. That’s already very big. 

Meanwhile, our thoughts drain. We are getting empty. Positive energy flows in to fill the vacuum. We are getting healthy by doing nothing, and are filling ourselves up with goodness by default. 

Our focus turns to our breath. Wow, we breathe. We are a wonder. There’s metabolism happening. We realise that our existence is already something big. All this while doing nothing. 

We rest. Our senses get a break. Our heart needs to beat less. Poor heart, it never gets a full break, until the very end. In the interim, it has to make do with beating less per unit time. It is grateful for such small mercies. 

Resting makes us gear up for forthcoming activity. Our bodies and minds refresh themselves for new endeavours…by doing nothing. 

Try it out. 

Do nothing. 

Perhaps it was lacking in your repertoire. 

It won’t be lacking now. 

Use it like a secret weapon!