Chancing

How does one discover the missing ingredient?

By chancing it. 

One keeps trying different mixes…

…till something hits. 

The hit is then fine-tuned…

…such that it is reproduced again and again.

Once the hit can be reproduced at will, one has got the strategy all together. 

A successful strategy is then let loose. 

At first it is on manual.

Ultimately, it comes on auto, or semi-auto, whatever best is possible. 

There has come and passed a stage, when this same strategy has not been winning. 

Aha. 

What is the difference between the mix of that stage and the current – winning – mix?

It’s some kind of a twist you’ve discovered. 

Something you are adding, or doing differently. 

This something is making the strategy win. 

Congratulations!

You’ve kept trying. 

You’ve been in the field. 

You weren’t away from the field, ruminating. 

You were getting action. 

Losing action, but action. 

Losing action has huge educational value. 

It tells you how not to do it. 

You keep twisting, fitting, tuning, upon loss. 

You chance new stuff.

Eventually, something clicks. 

You develop that something further and take it to the nth. 

Where does that leave you?

You have to keep chancing it. 

There is no way around this. 

Make funds available for the R&D. 

Have the courage. 

Don’t be afraid of a hundred losses. 

Winning is around the corner. 

Auto is our Motto

What are you doing…

…that’s not on auto?

Next question is, why is it not on auto?

On purpose?

Sure, there’s some stuff that you’d like to reserve for manual. That’s absolutely fine. 

Not on purpose?

Meaning you want it to be on auto, but haven’t done so?

Right. 

Why not?

Meaning, why are you not using that one big benefit of the twenty-first century – to your benefit?

Lazy?

Couldn’t care less?

Too complicated?

In a rut?

Whatever. 

Bottomline is, you’re losing out. 

How?

You’re losing out on…

…time…

…growth…

…evolution…

…prosperity…

…sense of fulfilment…

…sense of purpose…

…and what have you.

You can also start figuring out for yourself how you are losing out on these things amongst other stuff. No spoon-feeding here. 

Automation is the minimal requirement of our times. 

Automation requires transcending an activation barrier. 

This is a one-time input, before the concerned process goes on auto. 

This is also the step which makes many lose interest in going auto. 

Well, from nothing comes nothing. 

You will have to put in that time and energy for the one-time input that pushes the process into auto-mode. 

There is no way around it. 

However, each time you’ve gone auto, you’ll get a huge sense of accomplishment. 

You’ll want to recreate that feeling again and again and again. 

You’ll want to put more and more stuff on auto. 

With so much of auto stuff adding to you from the background, your life will become fuller. More enjoyable. More time to pursue whatever you wish to pursue. More time to be…

…you.

Cheers. 

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!

Stop-Loss vs Hedge – what’s what and how?

Insurance.

Makes you sleep easy.

Simultaneously, you are able to take a calculated risk.

Risk?

Why should you take a risk?

No risk no gain.

It’s as simple as that.

You have to put something on the line to possibly gain something.

That’s what market activity is all about.

You’re doing this all the time.

Day in, day out.

You’ve become used to a steady and dynamic LINE. Your line doesn’t harm you anymore. It doesn’t disrupt your life.

Well done.

How did you achieve this?

By using stops and hedges.

What’s the difference?

The difference is technical, and then practical.

For some mindsets and positions, a stop is more suited.

When you don’t mind exposing your market-play, and want to close your terminal and do other stuff, use a stop.

You get up from your desk, engage in other activity, and have forgotten about your position, because now you don’t need to tend to its needs for 24 hours, for example.

Great.

Your position will either play out, or it won’t.

If it doesn’t, your stop will automatically throw you out of your position.

The level of the stop is digestible.

Next morning, you simply move on to a new trade.

Let’s say you don’t want to to expose your market play, or, in some cases, when you don’t need to expose your market play – how do you then insure yourself?

Hedge.

A hedge maintains general market neutrality.

It leaves windows open for what-if scenarios.

For example, the trade could make money, and then the hedge could make money.

Or, vice-versa. As in lose-lose. Sure, there are win-loss and loss-win scenarios too.

The starting point is somewhat neutral, and then there are permutations and combinations.

Some people prefer this kind of play.

They like the possibility of maximizing profit from the total position at a calculated higher risk.

Also fine.

Generally, the idea is for your main position to make money and your hedge to lose money.

It might or might not play out like that.

Some like this uncertainty and know how to benefit from it.

A stop is sure-shot and straight-forward. It is low-risk as long as it is digestible.

Hedges open you to the risks of a meta-game. Play becomes more interesting, consuming, and possibly, more profitable, for experienced hedgers.

In my opinion, a hedge is slightly higher in risk than a stop.

However, both entities lower overall risk.

Currency pair forex trades are typically taken with a stop. However, they can be hedged too.

Market-neutral option-trades are typically taken using hedges.

Step into a trade with either or, for peace of mind and career longevity.

Cheers.

🙂