Saturation

I don’t wish to add to my repertoire.

It has reached some kind of saturation. 

There’s no limit to how far I can go within my repertoire.

However, it is not comfortable with strategy addition. 

Fine. 

Did you just have this dialogue?

With yourself?

It’s good you did. 

While you start out in a field, you’re developing it. 

There needs to come a stage, in a while, where you have exactly identified, that you’re developing this, this and this further. Nothing else. 

Once you know what the exact game is, all your focus is required to take it to the nth level. What that n is going to be is up to you, again. 

Bottomline is, after a point, know your game. 

This is the game. 

This is what you are scaling up. 

That, that, that and that you are discarding, or have discarded. 

You need to reach this point within a reasonable time-frame. 

Then comes the next step. 

Pray, what might that be?

Automation. 

Before embarking upon scaling up, that what remains in your saturated repertoire – automate it. 

Staff. 

Technology. 

What have you.

Use any means for automation. 

Anything that’s legit, and which works. 

Use it. 

Standing instruction. 

Alarm. 

Alert.

Whatever. 

Automation is a huge blessing if used properly and after having tied up all the loose ends. 

If implemented in a hurry with sieve-like loopholes, it can even take you to the cleaner’s.

Implement automation in a justified and sure-shot fashion. 

Do you know what’s going to happen now?

You have created a situation, where scaling up means just punching in an additional 0 in the right corner, before the decimal point. 

Wow.

After a while, the complete field will be on auto. 

Why?

If you’re wise, you won’t scale up beyond your sweet-spot. 

Why?

Because obnoxious scales come with obnoxious problems.

What’s obnoxious?

Anything beyond your sweet-spot…

…is obnoxious. 

What is your sweet-spot?

That only you can discover. 

So what now is the exact status of the field?

Your repertoire in the field has reached complete saturation regarding strategy and scale. It is on full auto. It is adding to your well-being without you batting an eye-lid. 

Congratulations. 

However, where does that leave you?

Is that even a question?

There’s so much to do in the world. 

Discover a new field. 

Develop your new repertoire in this field. 

Take it to strategy saturation. Automate it. Scale it up. Take it to the sweet-spot. Wean off the scaling up. Move on. 

What a life it’s going to be for you!

What remains …

… is the tough stuff. 

You’ve taken care of the easy stuff. 

It’s been taken to its logical conclusion. 

It’s either flowing with you in the background, enhancing you, or it’s been put permanently to rest by you, in a form that will also always add to you. 

You don’t notice it anymore. 

It was easy, right!?

Easy stuff doesn’t push you to the wall. 

It gives pleasure. 

One gets used to pleasure. 

After a while, one doesn’t notice the source anymore. At least, one doesn’t notice it too consciously. 

Situation is different with the hard stuff. 

It’s hard, as in difficult. 

It pains you. 

It pushes you to the wall. 

You are challenged.

You don’t forget something that challenges you. 

This something remains with you, before your eyes, all the time. 

You are trying to find a solution. 

Your system is working overtime to convert this hard stuff into easy stuff. 

For some hard stuff, you find the conversion. 

Taken care of…

…and gone. 

Other stuff refuses to convert. 

Yes. 

You have it here in a nutshell. 

What is this folder made of?

Folder?

Yeah, folder. 

What folder?

The folder containing the hard stuff that refuses to convert into easy stuff. 

Oh, that folder, right. 

Yeah, what does that folder contain?

Hard stuff that refuses to convert into easy stuff?

Yeah but in other and more understandable words now…?

The biggest tests in your life?

YES. 

Leading to the biggest lessons learnt if by chance you are able to push out even one hard-folder-component into the easy-stuff-folder?

Exactement.

Frozen

Frozen? 

It’s ok. 

Breathe. 

You need to acknowledge that you’re frozen. 

Without that, the next step won’t come. 

It’s normal to freeze sometimes. Just acknowledge it. Then learn. 

For example, I acknowledge that I’m currently frozen wrt to the USDINR short trade. Missed entry. Next opportunity to enter never developed for me, and the underlying is currently in free fall. Don’t have the guts to short it at this level. Yeah, I’m frozen all right.

However, the fact that I’m acknowledging it opens up the learning window. 

Why did I miss entry?

I know why I froze. Fear. What I need to understand is why I allowed a situation to develop that would lead to fear. 

Ok. 

Was running super busy. 

Neglected the underlying. 

Kept postponing entry… 

… till free-fall started. 

It’s good to be busy. 

Hmmm, so this can happen again. 

How do I stop this from happening again? 

If I ID a setup, I need to take it. 

No second-guessing. 

What about strategy? 

Meaning, am I going with a short strategy for USDINR? Or am I keeping the window open for a long strategy?

See, that’s it.

Keeping short and long windows open makes me second-guess all the time. 

So can I go in one-direction wrt USDINR all the time? 

What speaks for it? 

Underlying is falling from a height. Good. 

Short only means no second-guessing. You just go short, period. 

Stoploss will save ruin. 

Not nipping profits in the bud will amass fortunes. 

Can the underlying keep falling over the next few years? 

Why not? Modi’s looking set for 2019. 

Hmmm, so a short only strategy has a lot going for itself. 

There’s more. Future month contracts are quoted at a premium. The premium evaporates over the current month. This move is in your favour if you’re short. 

Ok, enough. 

Yeah, there’s enough on the table to warrant a short only strategy for USDINR. 

SEE? 

Learning process. 

Why did it happen?

Because I acknowledged that I had frozen. 

Now, my strategy is more fine-tuned and I’m probably less prone to second-guessing. 

You need to pull off such stuff when you freeze. 

Use the freeze to evolve. 

Winning Marketplay, Anyone?

Two words. 

Psychology.

Strategy. 

That’s it. 

Prediction?

No. 

Prediction is not pivotal here. 

We’re getting psychology and strategy right. 

We want winning marketplay, right?

Prediction is for losing marketplay. Prediction might be wrong. That’s when strategy and psychology save you from big loss. A big loss can wipe you out. Thus, dependence upon sheer prediction brings a wipe-out into play. That’s why, prediction is almost always relegated to the bottom rank when one talks about winning marketplay.

We’ll travel with a hint of prediction, though. Just a hint. Doesn’t suffice for losing yet. 

For entry purposes. Only.

Even this hint of prediction is bias-giving, though. Once we enter, we need to quickly lose the bias. Yeah, once we enter, we only react to what we see. 

Our system has an edge. It helps us choose market direction. After that, psychology and strategy take over. 

Meaning, after we’ve entered, there’s no more prediction in play. 

So what’s in play then?

The raw trade. 

And you.

At this point, all your mental strength comes into play. 

Oh, and your strategy. 

You do have a strategy, right?

As in, if x happens, they y, and if a happens then b.

You need a stoploss too.

You don’t have to show it. It can be mental, provided you don’t fool yourself into not using it when the time comes.

You won’t execute your stop. 

Sure. 

Again and again. 

Till you teach yourself how to. 

Till you lose big. And are still left standing. To want to enter again. 

Learning to take a small hit, again and again and again – that’s winning marketplay. Requires huge psychological strength. You acquire this. You don’t have to be born with it. 

Now comes another punchline. 

That profit-sapling just emerging…see it? You will not nip it in the bud. 

You’ll still do it. 

And again. 

You’ll nip it in the bud. 

Again and again. 

Till you teach yourself not to. 

It’s not easy. 

95%+ of all market players continue to nip profits in the bud all their lives. 

To allow the sapling to grow into a tree is the most difficult of all market lessons. Learning to let profits run is winning market play. 

To want more profits, you have to risk some of your current profits. 

No more risk, no more gain. 

You want to quickly exit and post that 22% gain on your Excel sheet. Sure. Why can’t you let it grow into an 82% gain? God alone knows. That’s how the cookie crumbles. You nip the opportunity to make that 82%. 

What’s with 82?

Just a random number. 

Am trying to get a point across. There’s a run happening. In a direction. It’s crossing +22%. Fast. Momentum could see it to +102%, to then backtrack and settle at +82%. It’s a probable scenario. 

Anyways, there are some smarties that risk 12 of the 22% and stay in the trade. Soon the 22 can even go beyond 82. Lets say it does. What do you do?

Nip?

No. 

Not yet. 

You let it travel. Momentum is to be allowed free leeway, till it halts. Let’s say it halts at 102. You say to yourself that the winds might change if 102 goes back to 82, and tell your broker to exit if 82 is hit intraday.

That and that alone is the proper way to exit a winning trade. You exit it with the taste of loss. You let the market throw you out. For all you know, the market might be in the mood for 152. You want to give the trade that chance. Thus, a momentum target exit while the move is still on would be less lucrative for you in the long run, or so I think. 

Why?

Statistics are defined by big wins. These matter. Big-time. Allow them to happen. Again and again and again. 

Now add position-sizing into your strategy. The ideology of position-sizing has been discovered and fantastically developed by Dr. Van Tharp. 

In a nutshell, position-sizing means that an increasing trading corpus due to winning should result in an increasing level risked. Also, correspondingly, a decreasing trading corpus due to losing should result in a decreasing level risked.

With position-sizing added to your arsenal, no one will be able to hinder your progress.

Psychological strength that comes from experiencing first-hand and digesting learning from varied market scenarios, coupled with a stoploss/profitrun position-sizing strategy – that’s a winning combination.

Wishing you happy and lucrative trading!

🙂 

Anyone up for a Quereinstieg?

Yeah, another German word.

And it’s loaded. 

I love the German language for it’s ability to combine words so that they can deliver a fistful!

So, what does it mean?

Quer means at an angle

Einstieg means entry

If you bang with something head-on, you’re likely to rebound. 

If you chisel into something at an angle with great force, you are likely to enter that something. 

That’s the logic. 

And it works. 

Albert Schweitzer, was it?

The multiply famous nobel-laureate who proposed and demonstrated Quereinstieg into fluency with a foreign language?

The formula was, for weeks in a row, to read texts, delve into media, the whole works, all in the foreign language, without really understanding what’s happening at first, and then getting a hold of the language’s structure through Sprachgefuehl, or feeling for language

Within a month or so, one would be speaking the language. One’s skills would be enough to get by on the streets. Works. 

Sprachgefuehl in action is a prime example of Quereinstieg

These are fast times. 

Almost the whole day, one is multitasking. 

And then, something new comes along. 

A new problem. 

One has to find a solution fast. 

There is no time to start from scratch. 

All other matters must be pulled along. Many people’s daily lives and routines hang upon you pulling your load. 

So, where does that leave you?

Cut to Quereinstieg.

You delve into the new matter, fast, at an angle, without bothering how you’ll fare.

You keep all your faculties open.

Your senses are on high alert.

You use your common-sense.

You learn from the play.

As you keep playing, on and on, you master technique.

The matter is not a problem anymore.

You incorporate the new asset into your repertoire as you attack your daily routine with renewed vigour and an arsenal boasting your latest Quereinstieg conquest. 

Looking for a Deal-Breaker

I look. 

Don’t find it. 

Look again. 

And again. 

Keep looking. 

Tired. 

Eyes ache. 

Sleepy. 

Stop. 

Resume next morning. 

Still nothing. 

So on and so forth. 

Few days. 

Absolutely nothing. 

Buy the stock.

Yes. 

That’s the chronology. 

After zeroing in on a stock…

…that’s the chronology. 

Am I happy the search was unsuccessful?

You bet!

Am I spent?

Yawn…yes. 

Was it worth it?

Of course. I now own a quality stock. 

What’s happened before?

Stockscreener. 

Stock pops up. One that appeals to me. 

Check it for value. 

Pass.

Check it for moat.

Pass. 

Look for deal-breaker. 

Yeah, final step. 

Takes the longest. 

It’s boiled down to a yes or no. 

One’s going to holding the stock for a long, long time. 

This is when one is asking every cell in one’s body. 

Yes or no?

No deal-breaker?

Fine. 

Going for it. 

It’s a yes. 

Fitting

I have this Wills fleece sweat-shirt since ’98.

Love it.

It’s a fit.

Can wear it for anything.

I’m sure you own or do something that just fits.

Very few people in the market understand the value of a fit.

What does a fit feel like?

It comes naturally.

No prompting or pushing.

It’s the essence of your strategy which resonates with you.

A fit holds you and moves you forward.

It makes you money till it continues to fit.

The ideal fit lasts a lifetime.

Nuances.

Everything and everyone has nuances.

A fit happens when nuances are out of the way. They’ve been dealt with in a full and final manner. They appeared, sure enough, got knocked out, which is when they disappeared. What remained was pure you and your fit. The two of you united.

Why is this fit so important?

We’ve spoken about the money angle. A fit makes you money.

There’s the family angle. A fit doesn’t let your market-life harm your family-life. Hence it ensures its own longevity by vitalizing your market-life and also your mental health.

A fit then possesses the versatility to deal with stumbling blocks along the path. Travel? You implement your strategy successfully despite travel. Schedule? Fit works around it. Diet? Fit changes diet, till diet fits.

Don’t underestimate the power of a fit.

🙂

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!

🙂

What’s it Gonna Take Today, Pal?

Indicators.

Fibonacci.

Moving averages.

Price action.

Isn’t everyone following all this?

Do the markets behave accordingly?

No. Not really. Sometimes, sure. Generally, no. Just my opinion.

So?

Where does that leave you?

How do you plan your trade entry?

There’s not much planning to it really.

Oh yeah?

Pray on what basis is one to enter then?

Study.

Then overall feel.

What?

Yes.

Gumption?

So?

With no study, direction’s a 50:50.

With study leading to overall feel translating into gumption, this ratio could well become 55:45.

You don’t need more.

Blackjack odds for the card-counter are perhaps 53:47 at peak.

Ok, so you’ve got your 55:45, what then?

Trade management.

You make your money managing your trade.

Formula?

Simple one.

You cut the wrong call. Nip it in the bud.

Let the right call continue being even more right.

Learn, perhaps the hard way, to let the winner continue winning.

Trade might reverse.

That’s the risk you have to take, to win more.

There are no free lunches in life.

Making the Skew – work for you

Anomalies.

Anomalies?

Opportunities.

Yeah.

It’s all about perspective.

Just align your perspective.

Get into the skin of the anomaly.

Why?

You were in this to make money, right?

So chop chop.

Anomalies are like waves.

They swell… and recede.

If you’ve missed one, wait for its one-offset to start swelling.

Oh yeah, forgot to reiterate, you’re out before it recedes.

That would be a great trade.

Getting in well before the swell and staying in would be an investment entry-strategy.

Getting out after a swell would be an investment exit-strategy.

Use your imagination.

Wishing you a lucrative market-footprint!

🙂

Focused Diversification : Mantra for all Times

I’m more into focus.

One can focus on one thing at a time.

Agreed.

What if after that one thing starts running, it doesn’t require any more focus?

Wow.

Then I focus on another thing.

Get it running.

Then another.

Till my focus window is full.

Let me tell you about my focus window.

I focus on cash, debt, equity, forex, gold, real-estate, arbitrage, and options.

With that, my professional focus in finance is full full full.

I get something running.

That’s it.

Then I don’t need to be with it. Mostly.

Let me run you through.

1). Cash – Bind it in a worry-free and accessible manner. Done.

2). Debt – Study the underlying very thoroughly. Reject 10 underlyings. Take up the 11th which passes all criteria. Be happy with a slightly better than FD-return. Done.

3). Equity – Invest for life. Study till you drop the stock or take it up. Only invest in what meets all criteria and offers margin of safety at time of investing. On top of that – SIP (systematic investment plan). Done.

4). Forex – Get a software robot to trade it for you. Or some human-capital. All available online. Requires a bit of fine-tuning. Keep tuning till you start making a return. Done.

5). Gold – Buy physical gold. Research your source. Needs to be impeccable. Bullion. Coins. SIP. Accessible. No jewellery. Done.

6). Real-estate – Make your real-estate yield you an income. Regular income? Done.

7). Arbitrage – Understand what this is, and why it gives you a tax benefit. Get an online MF account going with Kotak MF or DWS. Divert some funds into their arbitrage MF, either or. I prefer Kotak. Monthly dividend payout option. Done.

8). Options – Get the option-strategy going. You don’t require a desktop. Mobile is sufficient. All you now need to do is take care of square-off. On mobile. This means a slightly higher level of engagement than the above avenues. Only slightly. Are you ok with that? Fine. Done.

In a flow, it’s all doable.

And, you remain focused.

Why all this?

Times demand it. You never know what might come in handy, and when.

Yeah, times are tough.

However, you are tougher.

To use Nassim Nicholas Taleb’s terminology, you are antifragile.

The Art of Addressing

Address your goals.

Daily.

Make that part of your basics.

It’s easy to sit back, when a few fundamentals are sorted.

There could be bread and butter on the table.

Family could be in their groove.

Are you quite there yet?

No.

Don’t rest on the laurels of the few fundamentals you might have achieved.

An RJ might light a cigar and open a bottle of single in the evening, but only after his goals have been addressed for the day.

A WB might invite his poker buddies and kick off a game after a round of hamburgers… after his goals for the day have been addressed.

When does BG nip into his chocolates? At bedtime. After you know what. After addressing his goals for the day.

Yeah.

Now it’s your turn.

Have a few simple goals.

What?

Don’t have such goals?

Well, make them.

Then address them.

Break down your goals to their prime number form. For example :

– Research a stock

– Trade some forex.

– Write a piece.

– Learn something new.

See. As simple as possible.

It’s convenient to address simplicity.

Laziness and complacency are enemies, though.

Fight them.

🙂

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.

🙂

Limits will keep you Safe

Safety is under-rated.

People scoff… at safety.

Ask someone to belt-up.

Or, ask xyz to take a backup.

Emergency fund, anyone?

Insurance?

Plan B?

Is anyone really interested?

Ok, don’t have a plan B. Fine.

Then, you need to watch your plan A like a hawk.

You need to install safety nets.

One such net is a limit.

Limit movement of funds.

Nowadays, this takes but a few online clicks. Setting fund-movement limits in your netbanking is not difficult at all.

What does a limit do?

It says ballyhoo to your emotions.

Greedy?

Too bad, fellow, funds more than your defined limits can’t leave your savings account, in case you wished these to depart for your trading account.

So, greed is in check. With force. Order of the day.

Limits will keep you safe.

Over-optimistic?

Same check.

Limits will keep you safe.

So on and so forth.

A little self-control is required though.

You’re not going to tamper with your limit, right?

Right.

WoC

I think I found something. 

It’s very possible someone chanced upon my discovery before me. 

Doesn’t bother me. 

Reason?

I’m happy that I found something…myself. 

Struggle in finding…taught…me. 

I’m richer in implementational knowledge. 

Oh, I forgot to mention that I’m sharing the essence of my discovery…with you. 

Why?

I like to share. 

I won’t be spoon-feeding you…believe me. 

However, I won’t fall short of inserting the seed in your mind. 

Spare me the BS. 

I’ve heard it a million times before.

I have enough, and beyond that, I’m not commercially minded. 

In sharing are the riches. Hoarding leads to blockage…which leads to disease.

Sharing is flow. 

Flow leads to health…and happiness. 

Anyways, I’ve just established the WoC. 

Stands for Window of Confidence. 

You make it. 

How?

With your System. 

How?

Any which way you can mould your System to make it. 

Why do you make it?

It’s your basket…, your fishing net, actually. 

What do you catch in it?

That, which you wish to investigate further…for the purpose of investment. 

Whatever you delve into needs to meet certain standards, right?

There, you have it. 

Oh, one last thing…

…you ONLY look in your WoC…

…for that which needs to be investigated. 

You don’t look anywhere else.

Period. 

Happy Investing!

🙂

‘Sup Mr. Laptop

Yeah, where are you, Mr. Laptop?

Is this goodbye?

Singing your swan-song?

What’s happening?

You were heavy. 

Competition got lighter. 

You reduced. 

Did you reduce enough? Dunno. 

Along came apps. 

Most didn’t have a version for you. 

They did for your competition. 

People loved apps. 

One button-touch, and one was in the midst of everything. No hassles. You lacked that extra comfort. 

Along came the Cloud. 

Took away your storage-advantage. 

Along came tablets, smartphones, connectivity, and internet speed. 

Have these taken whatever remained?

Are you going to survive?

Where do you fit in?

The mouse, you say?

Technical work?

Complexities?

Proprietary software?

You’ve got a long list which you’ve prepared, I can see that. 

Okay. 

Stop. 

Put that list in your pocket. 

Close your eyes. 

Smell the coffee. 

What kind of a world do we live in?

Who succeeds?

What lives on?

Inclusion?

Or exclusion?

Inclusion. Decisively. Inclusive ventures scale mountains. Ventures that exclude, well, masses don’t care for them eventually. 

So, firsly, swallow all that proprietary talk. It’s not going to work. 

Then up, are you increasing convenience? Or, is your competition increasing it more? Vital question. It’s answer will decide who shall survive and become undisputed king.

Now comes the last question. 

It’s also a little heavy.

You might not like it. 

Nevertheless, here goes. 

Is there use for you anymore?

There. I said it. 

Hmmmm. 

In some areas, I guess, but we’ll again be going down the proprietary lane, which actually doesn’t cut it anymore. Not going down that lane. I think that might also answer your question. 

What remains?

Reinvention. 

Merge with your competition. 

Become a staunch part of the tablet, to save yourself from extinction. 

I think you’ve already started gong down that road. Yeah, only way out. And it’s a good one. It is highly successful. The lightness, portability and convenience of a tablet, coupled with storage and keyboard-ability with only 10-15% size and weight increase. Sounds amazing. 

Go for it!

Let It Come To You

Don’t run after the investment.

Let it come to you.

Let it breathe down your neck.

You’re not hungry for it…

…but, if it’s that good…

… you might take it.

Let it reveal its hidden goodness.

Let it ignite your curiosity to look for even more than basic goodness in the investment.

Play a passive-then-active role.

Some call this the sweet spot.

I call it the sweetest spot…

… which you really want to be in, in the world of investing.

Yeah, don’t be in a hurry.

Hurry spoils the curry.

Take your time, to the extent that…

… take time out of the equation.

Give your money the best possible chance…

… to make loads more.

Making Sense of Losing Battles

Winning gets boring after a while.

Unbelievable, but true.

However, losing continues to pinch, time after time.

That’s the key difference between winning and losing.

Life’s bipolar game is skewed more towards the pinch of continuous loss than towards the continued pleasure of winning.

Get used to losing… but, lose small.

Win big. Don’t nip a small win in the bud and thus stop it from becoming a big win.

Sometimes, you identify losing battles.

These are areas where you’re just not able to win.

What do you do with a losing battle?

Walk away. One option. Weigh the odds. If your walking away impacts no one, and simultaneously betters your existence, yeah, this is a very valid option. For example, one walks away from a losing trade.

Fight. Second option. You’re not beyond your stop, whether in a trade or in life. You fight, to save the battle, and perhaps to win.

Learn. Third option. You’re not able to get away from the losing battle, because your exit impacts something or someone. You hang on. No choice. Your pain teaches you big things. You learn. Sometimes, such a big losing battle suddenly turns into a glorious win. That’s because all the lessons from the scenario have been learnt. Enjoy, you deserve it.

Devolution. Not an option. Don’t allow your losing battle to devolve you into a demon.

Incorporation. Very valid option. Incorporate the learnt lessons from your losing battles into winning strategies for other battles in life.

Cheers.

Core-System Discovery

You look.

Perhaps without success.

You look again.

And again.

So on and forth.

Till you find.

What?

An addition to your core-system.

What’s a core-system?

The better question here would be – what’s your core-system?

Now, fortunately or unfortunately, that’s for you to find.

In a nutshell, your core-system is that something which makes you tick. It has as many facets as you wish it to have. Each facet needs to be discovered, attached, fine-tuned, tried, tested and finally welcomed to or rejected from your core-system.

Facets are not limited to your professional life. Your core-system makes you tick on an all-round basis.

For example, brewing and savouring that perfect cup of tea could be an important facet. Finding, fine-tuning and enjoying your favorite media-source could be another. Blogging could be one. Sport. Hobbies. Family time. People skills. Yeah, now we’re getting professional. You can fill in your professional blanks.

Discovery costs. Time, effort, funds, nerve, sweat. It’s worth it many times over when you find a fit. Please believe me.

Some things don’t fit. You think you want them badly, but the harder you try, the more they refuse to fit. After trying your hardest, you need to conserve your life-force to look for another fit. What didn’t fit didn’t fit for a reason. It’s not mandatory for Nature to reveal that reason to you. Move on.

Keep looking for fits. Eventually, you’ll have a robust core-system, which will make you tick exceptionally.

Happy Findings!

🙂

Charting Charting Charting

Why don’t you just…

… trade what you see?

Trade the chart, dammit.

Not the level.

Not the expectancy of a turnaround.

And, although I still do this because it gives me a kick, why do we even trade corrections?

Why can’t we just trade the sheer chart?

Every chart is either going up, down or nowhere.

So it’s pretty obvio, that the first step would be to…

… to what?

… to decide where the chart is going.

Again, it should be pretty obvio, that if a chart is going nowhere, then you are doing… what?

Are you trading such a chart?

NO!

Wait for such a chart to break out in one particular direction.

Wait for the LTT to turn in this direction.

Then trade this chart. Not before.

Yeah, LTT stands for long-term trend.

Yeah, we’ve befriended the LTT so much, that we have an abbreviation going for it…

Once you’ve sorted out the direction, look for an entry setup.

Be patient.

If the entry setup hasn’t formed yet, wait for it. If you can’t stop your twiddling fingers from doing something, feed in a trigger entry in case of a hypothetical setup formation within the next few hours / days, if your trading station allows this.

There’s no up or down anymore, to be honest. You are going where the chart is going, period.

You are also not asking the stooopidest question of them all…

… you guessed it… “Did the sensory index go up, or down?”

Just forget about the sensory index, ok?

I mean, we’re so done with sensory indices in this space.

Why?

DLF could tank 20 bucks on a day the Sensex goes up. Dow Jones could be down 50 points, but Pfizer could just spring into a stellar upwards move. Why should we have lost the short-side opportunity that DLF hypothetically gave, or the long-side opportunity that Pfizer could present, for example? We will do exactly that, i.e. lose the opportunity, if our focus is on the sensory index.

Focus on the underlying.

To be more precise, focus on the chart of the underlying.

Happy trading.

🙂