Does your Exit hurt you?

Good. 

Good? 

Yeah. Good. 

A proper exit – hurts. 

Huh? 

What about exiting on a high? 

Sure. 

Go ahead. 

Exit on your high.

Who’s stopping you? 

However… 

… who’s to say that the high won’t become higher? 

Exactly. 

No one knows. 

So, while the uncertainty about the high becoming higher is still out there – smarty – why are we going to not let it play out? 

Exactly. 

We are going to let it play out. 

Purpose? 

A new high might be posted. We then make more profit. 

Or, trade starts going against us, and we start to lose some of what we’ve gained. 

Hurt starts. 

When you can’t stand this hurt anymore – exit. 

That’s a proper exit. 

It’s leaving a bad taste in your mouth in the end. That’s when you know it’s a proper exit. 

You’ve stomped out the possibility of a new high. 

You’ve taken what the trade has to give. 

You’ve let the hurt set in. 

You’ve let the trade arrive at its logical conclusion. 

Now, you are exiting. 

Congratulations, you are exiting properly. 

Continue like this and you’ll become a great trader. 

What, have I let the cat out of the bag? 

Don’t worry, one can say it a million times and 99% of all traders will still continue to exit improperly. 

It’s human nature. 

Human nature works against the mindset of a winning trader.

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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. 

🙂 

Decoupling One o Two

Trade on.

Market forces.

You.

Connection.

Attenuation.

Life normal.

This is the real decoupling.

What was the other decoupling?

The myth one?

Myth?

I mean, Switzerland is kinda financially decoupled. The CHF just keeps its own despite anything.

Israel is also sort of decoupled. Despite everything. Functions on its own tangent. Matter of opinion.

These are exceptions. They prove the norm.

There are remote chances these exceptions won’t exist tomorrow. Having said that, let’s hope nothing like that ever happens.

However, permanent decoupling is mostly a myth. We’ll be better off not incorporating it into our investment or trading strategy.

Decoupling one o two is a different matter.

It is very welcome.

It gives longevity and harmony to a trader’s market- and normal-life.

Happy trading!

🙂

Additive Connectivity

What’s your market footprint like?

Meaning, where do you tread?

How do you tread?

Are you making a hash of it?

Do you connect the dots?

Are you organized?

Does your one action span across multiple goals?

What exactly are we talking about?

Chaos. 

You are your own light. 

Nobody can help you, except you, ultimately. 

Therefore, gear yourself up, to win the game for yourself. 

It possibly won’t come to exist, that you do one market thing. 

Market activity is multi-faceted. 

Even if you’re trading one single entity, there are many actions that go along with this one single activity. 

Yes, we’re talking about market actions. 

The sum total of your market actions is your market footprint. 

Make your actions additive. 

Meaning?

Each action should add to you. 

If an action is not adding to you, don’t do it. 

Even an action that stops further loss adds to you, for example. 

Also, make your actions connect across segments. 

Meaning?

Let’s say I’m eyeing a stock for a possible purchase, or a repurchase. Stock gaps down next morning, before my action. Aha. Hold. 60-70% of all gap-downs play out further. There’s a solid reason for gap-downs. So… hold. Yeah, action on hold. Why? I will possibly get a better price for reentry later, there’s a 60-70% chance of that. Thus, an action now won’t add to me. Action postponed. What do I do with the money set aside for the repurchase? Liquid mutual fund purchase. Online. Seamless. Connecting across? Absolutely. I’m simultaneously accumulating liquid funds to later go in for a private-placement NCD. Therefore, my one action from the equity segment has connected across to the debt segment. Yeah, connectivity. Additive. Stopped me from possible high entry. Made upcoming NCD purchase more possible by adding to its intended corpus. Additive Connectivity. 

Yeah, make yours a winning footprint. 

Before signing off, I’d like to share with you that i’ve just decided to take additive connectivity to the nth level for myself. 

Sure, I’ll be sharing more examples. 

Sharing brings joy to everyone, even to the person who is sharing. 

When are you doing it Right?

There’s something called the Line.

You feel it.

It’s abstract.

You have to be its master.

Then, you’re doing it right.

Controlled, the line won’t disturb your life.

It’ll very probably add to your life, in terms of wealth.

If you let it control you, everything is finished.

Goodbye.

Life. Wealth. Peace of mind.

It pays to master the line.

How do you feel the line?

By being invested, or in a trade.

How do you master the line?

By being invested or in a trade, again and again, again and again, and then some. Simultaneously, you’re nipping your bad behaviour in the bud, while the line is on.

You control your temper. You don’t lose it.

You develop patience with loved ones.

You learn how to position-size the line, while winning or losing.

You attenuate all kinds of disturbance.

You keep going on and on like this, till one fine day, the line’s presence becomes a part of your life. Line-switch being on doesn’t change you or alter your behaviour in any negative manner anymore.

That’s when you’re doing it right.

Effects?

Trade on = like when trade was not on.

Investment? You’re not thinking about it.

You sleep well.

Good family life… not disturbed by the presence of the line.

Yeah.

Line.

Master it.

Who Told Who So?

Nobody’s in a position to tell anyone so.

That’s the marketplace for you in a nutshell.

There are times when you’re sure a scrip has peaked, and it just keeps on going higher, and higher, and then even higher.

At other times, a scrip might show tremendous valuations, but it just refuses to rise. 9 years in a row. Just refuses to rise.

Welcome to a world where if you’re able to watch your own back, you’re good.

In the world we are speaking about, a Rakesh or a Warren are what they are because that’s what suits them particularly. What suits them might most definitely not suit you. What makes you think you can emulate someone in the marketplace?

That’s the whole point, people.

You need to carve out your own unique niche in the marketplace. Something that suits you, and just you. If you do that, you’ll be happy. Satisfied from within. And that’s when you’ll start doing well.

Your best performances will come when you start being … … yourself.

Playing someone else’s game? Well, try to. Don’t be surprised if you lose your pants.

Your biochemistry is unique. So are your reactions to subtle changes around you. Thus, your interactions and dialogues with Mrs. Market need to be unique. These need to cater to your needs, your queries, your tendencies and your idiosyncrasies.

We try to follow rules. We want to master Mrs. Market. Frankly, what a joke!

Firstly, we need to make our own rules, for ourselves.

Secondly, Mrs. Market needs to be understood, even if for short spans, and she most definitely doesn’t need to be mastered. She’ll master you rather than you her. Be wary of her, win from her, but why do you wish to conquer? Fool’s paradise. Stick to the script, pal. Take your winnings and go. Why do you bet the farm, in an effort to make a killing? You’re not proving any point to anyone. Everyone’s busy doing their own thing with Mrs. M. No one’s looking at you. You don’t need to prove anything to anyone. Don’t bet the farm. Stick to the script. Take your winnings and go.

So, what’s the real learning in this world we speak about?

When you go wrong. That’s when real learning begins. How do you handle yourself? How do you come back? How do you start winning again? How do you then keep winning, again, and again, and again.

That’s the learning.

I didn’t tell you so.

You discovered it for yourself.

Remember that.

Discover it for yourself.

What’re you waiting for?

Do You Believe in You(rself) ?

Still not hit the success button?

Suffering from an inferiority complex?

Market got you down?

Is it over for you?

Which brings us to the more important question : Do you believe in YOU?

Wrong English, I know, I know. Sometimes I misuse the language for effect. The effect is more important to me than how silly I look because of bad grammar.

Ok, so you want to succeed, make it big in the markets, blah blah blah.

Who doesn’t?

You obviously can’t last out if you don’t believe in yourself. Markets are draining, and tend to suck the living blood out of one’s body, so one needs to last. Market forces exhaust the system. It’s something about them, something electronic. This something consumes your stamina. So, no two ways, you need to last out. 20, 30, 40 years maybe…

I’m not saying it’s going to take you that long to succeed. For all I know you’re the next Jesse Livermore in a few years. Getting there is one thing, but staying there is another. Consistency. Maintaining success for many years in a row. That’s big. Something like that can be, and probably is, a trader’s lifetime goal.

It all starts with belief.

Baby steps.

First, weave a safety net around you. This involves the creation of a regular source of income to sustain your family’s basic needs. Such income needs to be independent of the market, any market. Your trading is not really begging you to earn your basic income. It can well do without that extra pressure. A comfortable slot for your trading to be in is when it can generate additional and bonus income for you. That’s the sweet-spot, and you want to be in it, with a comfortable safety net around you, free to trade the markets with no extra pressure.

Then, create a reliable system to trade the markets.

This can even take many years. I mean, some of us take seven odd years to recognize their basic risk-profile. Good, at least we are recognizing our risk-profile, because everything else is going to be built up on top of that.

As your system starts to perform, your belief in yourself gets stronger. Good going, stranger, now do humanity a favour and support others who are struggling to find themselves. In any way you can. It’s good Karma, and will help you further on your own path.

Then, you hit it big-time, your system catches some huge market swings, and you are there.

Now, other things start happening. Success brings with it its own entourage.

Remain on the ground, please. That’s how you are going to last out. Keep trading. Hitting the magic spot is not enough, you need to milk it as long as possible. Your new status of “successful” will bring many to your doorstep. The crowd wants to acquire the magic formula from you. People want your time. Deal with it, buddy. In a manner that still keeps you performing in the Zone, trade after trade. Also, in a manner that keeps you from hurting anybody’s feelings. I know, thin line, difficult to do, but you don’t additionally want the remnant emotional baggage of hurting people to affect your trading.

Apart from fame, there are other members in the entourage of success, and I’m just classifying them ad-hoc under the header “extra-curricular activities”. Yup, these will come your way. That’s part of being successful and famous. Well, do what you want, you’re a grown-up, nobody’s going to tell you where to draw the line. All one can say is, that if any extra-curricular baggage starts seeping into your trading, you’re going down Sir. Period.

Oh, where did it all start? Belief, right. Look where it can get you.

So come on, get up from your drawdown. Drawdowns happen. They are part of the learning process. The earlier they happen, the better it is for you. Now, you probably won’t let them happen when the stakes are big. When a future drawdown looms, you are prepared, and nip it in the bud. You don’t let it grow into an ulcer. That’s what your earlier drawdowns have taught you.

So get up and give it another shot.

All it takes is a bit of belief.