Sometimes, you don’t like it

Sure.

Like now.

Bloodbath in small-caps.

Alleged suicide.

NPAs.

Witch-hunt.

Did you choose Equity as an area of expertise?

Ok, then deal with it.

First up, India’s History is laden with scams.

We are where we are despite these.

Secondly, there’s growth. In other parts of the world, there is not much growth.

India is an emotionally volatile nation.

So are its markets.

Since this is where we act, let’s get used to things.

If you’ve been following the small entry quantum strategy, well, then you’ve got ammunition…

…at a time, when the value of this ammunition is immense…

…because lots of stuff has started to go for a song.

You do feel the pinch though…

… because whatever’s already in, is bleeding.

You don’t like it.

It’s normal.

Going in at a time like this, you will feel pathetic.

However, for your money, you are getting quality at cheap multiples. This will translate into immense long term wealth. Quality at cheap multiples multiplies fast.

Here are a few reasons you should feel ok about going in.

The small entry quantum strategy has rendered you liquid…

…after sorting out your basic family life, income-planning and what have you.

You are going in with money you don’t require for a longish time.

Muster up the courage.

Get over your pinch.

Engage.

Buy quality.

Debt-free-ness.

Shareholder-friendliness.

Generated free cashflow.

Transparency.

Diligent managements.

Product-profile that’s going to be around.

Less dependency on water.

Versatility.

Adaptibility.

Make your own list.

Use the stuff above.

Wishing you lucrative investing with no tears and with lots of smiles.

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Using Auto-Manual Mix Towards Peace of Mind

Create…

… an asset.

Move on.

Create…

… next asset.

Move on.

Loop to the nth and decide what your magic n is.

Retire.

Ha!

Formula for financial independence in 22 words?

You decide.

How?

By treading the path.

The act of creation is manual.

One can use many tools while putting the asset together manually. That’s absolutely fine.

Let the asset loose.

From this point on, it’s on auto.

It’ll remain on auto, hopefully, till its logical conclusion is reached.

If the asset misbehaves in between, it will attract your attention.

If your attention is attracted beyond your critical mass, you will stop what you’re doing and attend to the asset.

You will either tweak and repair and let it loose once more.

If the asset is beyond repair, you will terminate it, i.e. sell it off, even at a loss. After all, it is misbehaving. You don’t wish to hold something that bothers you.

Peace of mind is the most valuable asset in your portfolio.

Manual has a Tendency to Enslave

There is something about things by rote.

They create a groove.

We enter the groove on a repeated basis.

Entering becomes a given.

Our system has aligned itself to entering.

Our system gets comfortable.

It wants to stay there.

It wants more.

How does one extract oneself from this vicious cycle?

Firstly, why do we wish to extract ourselves?

We wish to control Manual, and we don’t want to let Manual control us.

If there’s too much of Manual, our day is gone, and we are not able to attend to more important things in life, like family, extra-curricular activities and all the jazz.

How to go about it is a question of awareness and setting limits.

Thus, you find yourself saying that you will engage to this particular level, and no more, and once this level of engagement is reached, you will put the strategy on auto, and disengage, and remain disengaged till the next screening is due.

Easier said than done, sure.

How is one able to stick to this plan?

If the day is busy, with multiple engagements, one forgets about the activity of the morning by afternoon, because the afternoon has brought with itself a whole new set of activities. Stay busy.

Learn to take small losses in stride. That’ll line you up for the big wins. Strategies left on auto till next screening can incur losses and then get stopped out. That’s part of the deal. Have faith in your stop. You have placed it at a strategic location, where it can not be reached so easily. For your stop to be reached, the market will have to go out of its way. If the market is doing that, you don’t wish to be in the trade anyways. You’re stopped out, and that’s good. That saves you from big losses. Have faith in this philosophy.

So, you’re busy, and you have faith in your philosophy.

You engage, disengage and move on.

You don’t look behind.

That’s how you keep Manual from enslaving you.

A Little Bit of Manual is a Good Thing

Sure.

Auto is the motto.

Keep some pivotal stuff on manual, though.

It’ll give you something to do.

Because it’s pivotal stuff, it decides direction, or quantum, or what have you.

Position-sizing is ideally done on auto.

You can write an algorithm for it too.

Yeah.

You can take auto to the nth level and then some.

Keeping position-sizing on manual, though, for example, makes you remain in touch with portfolio expansion or contraction. Central.

In my opinion, setting risk:reward is a trade to trade thing, and depends upon the underlying chart. Hence, being manual here gives more dexterity.

Same goes for setting stop-losses.

Which auto strategy to look at, when, is by default a manual thing. It should be, anyways, in my opinion.

This adds spontaneity to life.

Spontaneity has a certain freshness to it which makes work fun.

Some strategies are better off when not looked at for days.

Manual helps here.

When an auto strategy stops working, one needs to manually fit it to work again.

If the strategy needs dumping, you’ll need to see to this yourself.

Creation of a new strategy – you got it – manual.

The manual stuff keeps you moving, and fit.

The auto stuff just goes on auto, and if that’s all there is for you, you’re going to start getting lazy.

Befriend manual, but don’t become a slave to manual.

A little bit of manual is a good thing.

Making Forex Go on Auto W/o Software Robotics

Charts.

Chart.

Identification…

…of trade.

Trigger Entry.

Feed in entry level.

Trigger Stop.

Choose between dynamic and fixed stop.

I like the fixed stop that keeps raising itself in chunks, chunk after chunk.

However, you might prefer a dynamic stop.

Trigger Limit. Not necessarily a must.

Put trade on.

Entry triggers.

You are now live…

…and your forex is now on auto,…

… whereby you’ve not used a software robot to achieve this.

Well done!

🙂

Auto Strategies Befit This Age

Create an asset. 
 
Move on.
 
Create next asset. 
 
Move on.
 
So on and so forth. 
 
Very soon, you are sorted for life. 
 
What is an asset?
 
An asset puts money in your pocket.
 
As opposed to a liability…
 
…which takes money out of your pocket. 
 
Therefore, we are in the business of creating assets. Period. 
 
Once an asset is created, it becomes a strategy on auto…
 
…till it needs handling for a bit. 
 
You handle for a bit, make it go on auto again, and then you move on. 
 
When it needs handling, it will tell you. It will scream. 
 
When it doesn’t need handling, it won’t bother you. 
 
At these times, it will silently put the money in your pocket, even if you’re too busy looking elsewhere. 
 
The idea is to get as many such assets in place as possible, in a balanced and no-nonsense fashion. 
 
This is the age of short attention-spans.
 
Creation of an asset requires short attention-span focus, mostly. 
 
Auto strategies befit this age. 
 
Go for it. 

The Why of Movement

Spread.

Buyer.

Seller.

Willingness to buy.

Willingness to sell.

Buying pressure.

Selling Pressure.

Which is more?

Willingness leads to pressure…

…if buyer or seller is serious about it.

Willingness stops at willingness and does not lead to pressure when buyer or seller is in two minds.

Back to…

…buying pressure…

… and selling pressure.

When overall buying pressure outdoes overall selling pressure…

…prices move up.

When overall selling pressure outdoes overall buying pressure…

…prices move down.