Nath on Equity – almost there

Market being down 61). should not pinch you. If such condition does pinch you, you might react accordingly, and do something painful. 

You make market-downs not pinch you by being 62). miniscually committed at any given time. 

Also, 63). you continue committing your miniscule quanta during market downs. 

That’s because 64). you’ve made sure you have lots more to commit, by defining such an approach for yourself. 

You are 65). happy that the market is down, because it is giving you an opportunity to enter. 

You 66). switch off market TV. You don’t wanna know from them, because they themselves don’t know what works for you. 

All 67). useless emails and smses are put on block. 

That’s because 68). information overload is your nemesis. 

You 69). learn from everything you experience. 

However, you 70). don’t follow any market-person. 

That’s because 71). you are unique. Only you can benefit yourself, ultimately. 

You are going to 72). teach yourself to become a strong hand

Thus, you will 73). not get affected by the behaviour of weak hands, ie. the masses.

Instead, you will teach yourself to 74). take advantage of the behaviour of weak hands. 

Market players 75). commit the same blunders again, and again and again. 

That’s because 76). every few years, a whole new batch of market players starts behaving unreasonably. 

This proves to us 77). that the only real learning comes first hand from market-play, to you and you alone, and only from your market-play.

This also pretty darn well insinuates that 78). theoretical learning from books or universities has zilch value in the markets.

You’re lucky 79). if the market knocks you around during your first seven years of market-play, when the kitty is small. 

That’s because 80). exactly that learning from 79). is going to earn you big as the kitty increases during your meat-years of market-play. 

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Lost for Words, Mr. Nath? 

Yeah, sometimes I really am. 

With very few people, and in very few situations. 

Call it Karma. 

That’s not the point. 

In the event you find yourself in a similar situation, we’re here to size up options. 

What do we fall back on? 

Silence. 

In its solitude, a thought processes emerges. 

What are we looking for? 

Cool, calm straight-forward common sense.

Found it? 

It will speak to you. 

Let it. 

It’s got the words, remember? You don’t. 

Listen to it. 

What’s it telling you to do? 

Difficult? 

Can you do it? A yes is great here. You’re sorted already. 

No? 

Next option. 

Nothing. 

Can you sit tight? Doing nothing? Till your path emerges? Yes is good. 

No? 

Ok. 

Can you stop yourself from doing the wrong thing? 

Wrong? 

Violence, anger etc. You got it? 

How, you ask? 

Occupy yourself with something else more captivating. Possible? A yes here is your last “amicable” option. 

If it’s still a no, you might want to consider new company, or a new environment. 

Sometimes, we get stuck in life. With a person. And / or in a situation. For good reasons, we can’t get out. What’s the silver lining? 

Learning. 

Our difficult situation is ironing out some fault within us. As long as the fault remains, the situation seems desperate. No fault anymore? Situation vanishes. 

It’s called evolution. 

We don’t evolve for free.

Similarly, we don’t learn to navigate through the markets for free. 

Difficult situations teach us. They cost money.

We survive small losses through the learning process, to win big later. We want the learning process to come at an early stage, when the stakes are low. 

The biggest wins come when we use our evolution to capitalize upon a difficult situation, because we know its nuances. That’s good for the markets. 

In real life it won’t pay to take advantage of somebody’s nuances. That’s actually devolving. 

Maintaining perspective between market life and real life is an evolutionary exercise too. 

What to do in the Age of Shocks?

Wait for a shock.

That’s it.

Then go in… a bit.

Sound simple?

Ain’t.

Why?

Firstly, patience.

Who has patience, today?

Few.

Secondly, psychology.

Shock brings pessimism.

You don’t want to go in, not even a bit.

That is the whole thing.

Punchline. Understand it, and you’ve won already.

Thirdly, funds.

Who has funds, when the shock arrives?

Few.

Why?

Barely anyone knows how to SIT on funds.

I didn’t either.

Self-taught.

Through mistakes and pain.

By putting money on the line… losing it.

Took eleven years.

Now I know.

So don’t tell me that one is only born with the ability to sit.

Don’t waste your funds. Save them. They are your soldiers.

Fourthly, energy reserves.

Who has energy reserves when the shock arrives?

Few.

Why?

We’re too busy doing this doing that, always, forever. We don’t know how to conserve energy and build up reserves. Those who do then use their reserves to carry forward their strategies upon the arrival of a shock.

Fifthly, focus.

The hallmark of a big winner is focus.

Who has focus?

Few.

We’re too busy diversifying. It’s safer. Investing in the wake of shocks requires pinpointed focus.

Sixthly, courage.

Who has courage?

Few.

Why?

We’ve been taught to avoid, and move on. Life’s too full of BS that needs to be avoided. However, coming out during shocks needs courage. Face the enemy, and fight.

Seventhly, and perhaps this should have been on the top of the list, common-sense.

Who has common-sense?

Almost no one.

Why?

We’re too busy being complicated and sophisticated. We want to portray falsehood. We miss the forest for the trees. However, shocks are tackled with common-sense. Simplicity in thinking is paramount. The simplest ideas making the most sense are also the most successful ones.

Eighthly, long-term vision.

Who has vision?

Handful of people.

Why?

We’re too near-sighted. We want instant gratification. However, a shock presents excellent ground to root yourself in for the long-term. Understand this, and you’ll have understood a lot.

I could go on.

That’s quite enough though.

Above are eight points to think about,  to be seen as eight weapons that need sharpening, to come out fighting in the age of shocks.

Be patient, optimistic, fund-heavy, energy-heavy, focused and brave. Use your common-sense. Have long-term vision. BASICS.

Wishing you successful investing, in an age riddled with shocks.

🙂

Pain is Pain

Pain is pain.

Can you see it?

I know you can see yours.

Thanks for reconfirming.

Can you see the pain of others, by the way?

Does it register?

Do you walk by?

Who are you… or… what are you?

Decide which question applies to you.

For example, do you see the pain of that earthworm writhing in the sun?

It rains. Coupla earthworms come out, only to be met by scorching sun. They writhe. Do you pick them up with a twig and install them in a wet muddy patch? Do you ignore them? Do you even notice them?

Finance is not too different.

It rains on your plans.

You writhe.

If your overall strategy has not been adequate, you can even perish due to your predicament.

Do you expect help?

Well, who doesn’t?

Only, you are that earthworm now. You are in pain.

Pain is pain.

The earthworm feels it, and so do you.

However, the earthworm is not able to do much. It will probably perish.

You, however, are human capital.

Stop writhing.

Prove you prowess as being superior in performance when compared to an earthworm, or perhaps to a donkey.

Stand up.

Clear your head.

Analyze the situation.

Pain dulls.

You’ve got to push through, and come out of it.

Once you’re up, and through, as in out of your predicament, well, don’t make the same mistake again. You’ll make other ones, sure, we all make other ones, but let’s not repeat the same one.

Safe investing.

🙂

Happy Fifth Birthday, Magic Bull!

Turning 5, tick-tock, how time flies!

Has the game changed? 

No. 

What are we in it for? Why do we play?

Bread and butter. Security. Children, their future. Ourselves. Goals. Luxury. Whatever makes us tick. 

Each time we tick, let’s tick better. 

Mistakes mean learning. We’re seeing them as tuition fees, because mistakes cost money. They are the only real learning. You learn when you’re hit. You learn from the pain. 

All other learning is – paper learning. It doesn’t translate into our DNA easily (or at all). For DNA-translation, there needs to be a biochemical change in the body. Metamorphosis. If paper-learning does that for you, well, you’re lucky. Count your blessings. To be envied. 

Rewards bring hubris. 

Hubris makes us vulnerable. 

How?

We get lazy and are caught napping. Off-guard. Hubris-condition coupled with big market-mistake can mean downfall. Don’t want to take names, but exactly this has happened to many. 

What is it about success? What does it do to the human being? Why do we stop being ourselves once we succeed? Why do we stop learning once we succeed?

Yet, each one of us strives for success. 

Can we remember to behave ourselves once we succeed? 

What kind of behaviour are we talking about?

The same behaviour that paved the way for success. Can we maintain that same standard of behaviour? Why is that difficult? It becomes difficult because the after-party causes hangovers. Let’s just scrap the after-party. Let’s continue to be ourselves even after we succeed. 

Instead of the after-party, let’s do something for society, for example. We can even pursue a constructive side-game, which has nothing to do with the main-game. It keeps us ticking on a different level. 

It’s important to tick. The opposite of that is stagnation. Ticking means evolution. 

Evolution means that the next time you take a shot, you’ve better at your game. You’ve evolved because of past learning. You are human capital, remember?

Happy Ticking!

🙂

Making it Count

You’re playing a big one.

What’s foremost?

Make it count. For heaven’s sake.

Why?

Big plays don’t come too often. When they do, you have to catch them. You need to have energy left, to play. Then you just go all the way. Till the play plays itself out.

Life is an accumulation of knicks and knacks.

At first, you don’t know what you’re good for.

When you do know it, you start out as a net-net loser in whatever you’re good for, because every rookie needs to pay tuition fees. These are the costs of your mistakes.

Then you start getting the hang of something you’re naturally good at. Tricks of the trade – you learn them. You succeed in making your activity applicable, perhaps even financially viable.

Next step is to scale up.

You need to make your successful model count. Period.

Tired? Want to do other things? Need to borrow? Too big a pain? Time-issues? Overdose? Bureaucracy?

Whatever.

Don’t lessen the flow. Hold on. Ask the Universe for reserves. See the play through.

One life can mean just a few big plays.

When you’ve latched onto one, and have set it up so beautifully, now’s the time make it count.

Best of luck!

🙂

Small Things are Big Things

You’ve covered lot of ground, and are now cleaning up the field. 

You’re tying up the loose ends. 

Your small acts here count big. 

Please see them through to their logical conclusion. 

Don’t get up without completing full action. 

An act at or towards the end leans on the main piece of action which you’ve already fulfilled. 

It’s loaded on a spring. It’s effectivity is enormous. However, you are tired. You’re looking to close up. Hashtags, man, what are these hashtags!? Why do I have to put them, you’re saying to yourself. What purpose do they serve? Let me just forget about them.

No.

Hashtags are just one thing. A small thing, but then, a big thing. 

Tying your act into your own seamless sphere is another such thing. 

I know, it’s a pain…but seamlessness is a beautiful feeling. 

I like to imagine that seamlessness is the equivalent of free-falling in a mad, mad world. Maybe that’s a nonsensical analogy, but that’s what I like to imagine. Seamlessness gives you a huge advantage in today’s world. Take it. Make the effort to keep yourself seamless. 

Backing up, yeah yeah. Who likes backups? You’ve got to do them, however. No pain, no gain. I’ll talk to you after some data-loss. Only bother hooking up with me if you’re well backed-up. I don’t have the energy to lend a shoulder that withstands your tears in the event you weren’t back-up. 

Where hashtags stop, that’s where your organisational skills should take over. Meaning, that one hashtag-search could give a thousand results. How do you still find what you’re looking for? Logic. You’ve used your logic while organising your work. Logically, your file should be somewhere, and that’s the somewhere you look. 90%+ you’ll find it there. Follow seamless logic. The first logical avenue that comes to mind…take it. Yeah, your seamlessness also stands on your own seamless logic. 

Staying with what counts is a small thing, but again, it’s a big thing. 

On the path, one strays. One is distracted. What do you do?

The mind is like a baby. 

Don’t deny it outright. 

Trick it. 

Let it stray for a bit. 

Then, when its defences are down, bring it back to the main path. 

Keep bringing it back, until it starts getting a rooting righ by returning to home-base every half an hour. That’s the sweet-spot.

Don’t lose yourself into lost causes. 

Achieve. Fine. Set goals. Sure. Get them done. Great. Move on. 

Moving on is one small step. However, it’s a big step. Not many have the strength or the mental capacity to move on. Make sure you do. 

How?

Open your eyes and see the world. 

If you feel that your one achievement is going to make it spin, fine, stay on there, good for you. If not, please move on to your next achievement. Keep doing this till you find that one big, big thing for yourself. By that time, you’ll have many small things going on auto-pilot anyways. 

Get a grip. Nip something small when it’s small. Get to the big. Go for it. 🙂