Going for the Multiple 

Relax. 

We’re not going for the jugular. 

Or are we? 

The jugular has the most copious flow. 

Maybe we are then… 

… going for the jugular. 

However, there’s no stabbing happening. 

We do everything from the inside of our comfort-zone.

We act with harmony. 

Balance. 

Focus. 

Intelligence. 

Common-sense. 

We try and be non-violent about it. 

What are we doing? 

We’re looking to create wealth. 

What makes us look? 

Security. Our basic income secures us. 

Boredom. Adding to our basic income has become boring. 

Overflow. As basic income starts to overflow, it needs a long-term avenue in which it doesn’t demand our constant attention. 

Fine. 

What’s the best way… 

… to go about it?

Where there’s honey, there are bees. 

Finance-people find you. You have money. They have investments. For finance-people, you are bread and butter. 

So, you sit. 

You wait. 

You let them come. 

You’ve got discriminatory-ability. 

You sift. 99% of what comes goes into the bin. 

You like 1%. 

You invest in that 1%.

How much? 

Whatever you pre-define as your per-annum outflow into wealth-creation. 

Only that much. 

What then? 

What’s the bottom-line? 

What’s your holding strategy? 

Nothing. 

You sit. 

The biggest money is made…

…while sitting.”

You’re not even looking at your long-term investment more than once a month. 

You’re not interested in daily quotes.

The daily quote can say zero. You don’t care. You know that you are in the process of creating wealth, and that it’s going to take long, and within that period you don’t care if the world thinks your holding is zero, because you know it isn’t. 

Why? 

Due-diligence. 

Ability to think differently. 

Ability to see wealth in its nascent stage, and to recognize it. 

You have these things. 

They didn’t come for free. 

You took some solid hits to earn them. 

Yeah, you have what it takes, and that’s why… 

… you’re going for the multiple. 

MP vs MoS : the lowdown on Trade-Entry

Margin of Safety (MoS)… 

… hmmm… 

… wasn’t that in investing? 

Well – surprise – it’s in trading too. 

You can enter a trade with MoS. 

How? 

Ok.

ID the trend. 

Wait for a minor reversal.

Let the reversal continue towards a pivot, or a support or a what have you. 

During this reversal, whenever you feel that you have considerable MoS, well – enter. 

Why shouldn’t you wait for the pivot to get touched? 

Things happen real fast at a pivot. Upon a pivot-touch, you can lose your comfort-zone even within minutes. 

Two vital things can happen at a pivot. 

Either there’s a quick bounce-back, or the pivot gets broken. 

Bounce-back means your trade is now in the money, and that you can go about managing your trade as per your trade-management rules. Wonderful. 

Pivot-break is not a worry for you. 

Why? 

Because you’ve placed your stop slightly below pivot, after the noise. 

Upon pivot-break, you get stopped out. You take the small hit and move on to your next trade. 

Eventually, things heat up. 

There is movement. 

Tops get taken out. 

Fast money can be made. 

How do you enter here? (Needless to say, for shorts, everything is to be understood reversed). 

Momentum play (MP)… 

… is the weapon of choice. 

You set up a trigger entry after a top or a resistance or a what have you, and wait for price to pierce, and for your entry to get triggered. Then you place your stop, below top or resistance or what have you. 

MP vs MoS is a matter of style. 

If you’re not comfortable changing your trading style to adapt to times, that’s fine too. Stick to one style.

If you’re conservative, stick to MoS. 

In a frenzy, however, MoS might almost never happen. 

In a frenzy, entry will be triggered exclusively through MP.

Take your pick. Adapt. Do both. Or don’t. Do one.

You call the shots. 

This is about you.