Dealing with the Nag

Sadly, one’s spouse is the butt of many jokes in life. 

However, at the outset, I wish to make it very clear, that this piece is not about a joke at the cost of my beloved spouse, who, by the way doesn’t even fall under the N-word category. 

Having gotten that out of the way, what kind of nag are we talking about. 

This one’s almost a constant, and starts off as soon as your money goes on the line. 

At first it’s a tug. 

What are the markets doing?

How is your holding faring?

Let’s have a look. 

Come on, come on…

The tug is very compelling. 

You have a look. 

You see that your holding is taking a hit. 

There is disappointment. 

You shut your terminal in disgust. 

You’re trying to do other stuff, to divert your mind, but your mind keeps flowing back to the status of your holding. 

The tug has become a nag. 

This is the nag we’re talking about. 

We wish to outline a strategy which takes the nag out of your way. 

So, how does one deal with the nag?

It will be there. However it won’t be in your way. How do we create this condition?

If you can manage by ignoring, that’s just great. This might not work though. Nag-value mostly defeats ignoring power. 

Enter small each time. You will take away greatly from the nag-factor. It won’t hit you as much. You will me waiting to enter again, small of course, in the event that your holding has fallen. This is long-term investing we’re talking about. You’ve done your due diligence, and are not afraid to repurchase umpteen times as long as you’re getting margin of safety. Re-entry upon a fall in price of the underlying does not work while trading. In fact, re-entry upon a fall while trading is a strict no-no. You exit your trade if the fall goes through your stop-loss. You don’t re-enter. However, the small entry quantum during long-term investing goes a long way in reducing the nag factor. 

How do we wash away what’s left of the factor?

Do many market activities, as in, play multiple markets. After you’re done with one market, forget about it and move on to another. Mind will genuinely be distracted. Nag value will be further reduced, and greatly. However, it will still be there, minutely. 

Once you are done with all your markets, close your connection to them for the rest of the day, and only open the connection during the next market session, and that too upon requirement only. Meanwhile, you’re doing other stuff. Life has so much to offer. All remnant nag will be washed under the rug. 

You need to now just hold it together and resist the lure of a nudge in your mind to see how the markets closed, or any similar urge. You’re done for the day, and don’t you forget it. Don’t fall back into the trap, or the rest of your day (and perhaps your night too) would be ruined. Ask yourself if that would be worth it. No? Then move on. Enjoy the rest of your day doing other stuff.

You’re done already!

🙂

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Control

Longevity.

We look for it in the markets too. 

It’s natural.

Our first instinct is to survive. 

Our second instinct is to survive well. 

In the markets, both these instincts are addressed by our definition and understanding of control. 

Are we control-freaks? 

There’s no harm in admitting it, it’ll save us from losses. 

Well, if we are, we’re better off seeking another career where control-freaking is an asset.

In the markets, it’s not.

Yeah, surprise surprise, Mrs. Market is gonna keep hitting our stops again and again and again, till we get tired of second-guessing her and just sheer quit.

Or, if we’re adamant too, she’ll just drive us bankrupt. 

Are we giving her complete leeway?

Well, then she’ll drive us bankrupt anyways, with no stops in place.

Mrs. Market works against us when we exhibit extreme behaviour wrt control.

Let’s fine-tune control.

We’ll find the median for stop-size.

Something that’s workable.

We then move with her.

If she moves in our direction of the trade, we keep raising our stop with her, from a distance, quietly.

Control, mild, unadvertised.

She’ll stop us out eventually, perhaps after some profit.

Good. 

As in, workable. 

When she goes berserk in our direction of the trade, we’ll ignore her and just let her do her thing.

Minimum control.

No definition of targets.

Stop is far away. It’s deep in profits, and being raised quietly. She’ll need to stop us out with a big swing against us. Yeah, deep in profit, we’ve kept a large leeway between stop and CMP.

We’re not micromanaging her.

Motive?

We wish to allow her to go even more berserk in our direction of the trade.

We’re daring her too, as in “come and get our stop, if you have the guts to fall this far”.

Control.

Very subtle.

We’re controlling our environment, while simultaneously ignoring her.

Very workable. 

We’ll live long in the markets.