Nath on Trading – Basics Win

1). Put yourself out there. Again and again. Take the next trade.

2). Keep yourself in a position to take the next trade. How?

3). Take small losses. Have a stop in place. Always. Have the guts to have it in place physically.

4). Trade with money that doesn’t hurt you if it’s gone.

5). Don’t exhaust stamina. Put trade in place with smart stop that moves as per definition, and then forget it. 

6). Keep yourself physically and mentally fit. Good health will make you take the next trade. Bad health won’t.

7). Have a system…

8). …with an edge, and even a slight edge will do.

9). Keep sharpening your system. 

10). Don’t listen to anyone. You’ve got your system, remember? Sc#@w tips. God has given you a brain. Use it. 

11). Let profit run. Don’t nip it in the bud. PLEASE.

12). A big profit doesn’t mean you’re it. It can become bigger. And bigger. Remember that.

13). What’s going to keep your account in the green over the long run are the big winning trades. LET THEM HAPPEN. How?

14). You exit when the market stops you out. Period. Your trailing stop on auto is fully capable of locking in big gains and then some.

15). Similarly, make the market make you enter. Entries are to be triggered by the market. Use trigger-entries on your platform.

16). When a trade is triggered, you’re done with it, till it’s stopped out, in profit or in loss. Can you follow that?

17). Your trade identification skills are going to improve over time. Get through that time without giving up. 

18). Despair is bad, but euphoria is worse. Guard yourself against euphoria after a big win. Why?

19). Big wins are often followed by recklessness and deviations from one’s system that is already working. NO.

20). Use your common-sense. Is your calculator saying the right thing? Can this underlying be at that price? Keep asking questions that require common-sense to respond. Keep your common-sense awake. 

 

 

 

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Markets & Detachment – Possible?

We’re pushing limits here.

Making the improbable possible – doesn’t that give you a kick?

Am I even qualified to talk about detachment in the markets?

Well, I can at least tell you how I’m approaching the subject.

Hmmmm – where to begin, let’s see…

Let’s start at the nascent stage where a pang of attachment causes you to worry.

You sit up.

What’ll happen to my stock?

What if there’s a huge crash overnight?

What if I get wiped out?

What will my wife think of me?

Will I become the laughing stock of the Universe?

It’s ok.

Worry.

Burn your heart out worrying.

One needs to feel the pain of the disease to want to weed it out comprehensively.

Worrying and burning your heart out is not the only thing you are doing, though.

You are simultaneously making a list of all the questions that are cropping up courtesy your burning heart.

Yes, yes, make the list. Cast aside the silliness of the questions. No matter how silly a question is, include it in the list if it has cropped up even once. Get on with it.

There then comes a time where you can confidently say, that yes, my list of questions is pretty much complete. No new question seems to be asking itself.

Wonderful.

Now go about creating the circumstances for each question to not crop up.

Meaning that you have undergone actions that are now enabling you to answer each question with “this will not happen because I have created such infrastructures that exactly this will not happen”.

How are you addressing those question for which you can’t create such infrastructures, like an imminent market-crash, or what your spouse might think of you?

To address these particular questions, you create circumstances that cause you to be least affected in the event of the appearance of such questions.

For example, to be mostly insulated from the effects of crashes, buy with margin of safety. Or, set stops. Or, don’t buy. Short. Hedge. Do what suits you, but do it.

Regarding spouse, he or she will think what she thinks. You can’t change that. You just need to have a clear conscience. Commit those actions that give you the clear conscience. Hahahahahaha! 🙂

Right.

There then comes a time, where all queries have been comprehensively addressed. They stop cropping up.

Next, you need to stop committing those actions that can act as catalysts for a query to pop up.

Only look at the market when you have to. Don’t, otherwise. Try only looking at the underlying. Broader markets – well, poisonous, keep these at a minimum. Try and bring down your market action to once a day. Limit the action to the minimal time possible.

Weed out any kind of market conversation with other individuals. There’s no need. There’s you, there’s the market, there’s your system. That’s all you need.

Keep brokers and middle-men at a manageable level. Preferably at zero, and maximally at lower single digits. Only do business with them, no loose-talk, no exchange of tips. Tips are another big poison.

Find your own investments or trades. Resources are phenomenal today. You have everything at your beck and call with a computer and an internet connection.

Shut off business TV. More than a glance at the business page of the newspaper is unnecessary. Business magazines? Forget it. Every piece of info is accessible pinpointedly on the net. You wish to enter into an investment at the nascent stage, right? By the time the story gets published, smart money is already in, and there’s already been a run-up. Your margin of safety is gone.

Finally, take a look at yourself now.

Your results are improving drastically…

…and you’ve detached in the markets…!

When the Groove Yields Infinity

What’s an ideal groove?

It’s a frame-set…

…that makes you outperform.

When you find your ideal groove, you keep levelling up, as if it were the daily norm.

Why?

You feel like working.

The groove is such.

It’s a coupling of the right environment, the right time-sets, the right people, the right systems…and you.

And, it’s not just any odd coupling.

It’s the ideal coupling.

Saying that you feel like working is actually an understatement.

You feel like outperforming. That’s a more accurate statement.

Even more accurate would be, that outperformance becomes a habit with you.

Such is the groove.

Wow!

How does one find this groove?

HA!

Now you’re asking the million dollar question.

Many perish without finding it.

Many have never heard of it. They just don’t know any better.

Some have heard of it, but their circumstances are such, that they don’t have the time, resources or energy to look for it.

A few are able to search for it.

Even fewer make it past strategy.

Some of these are able to couple their many strategies into a full-fledged system.

Now comes fitting.

One needs to now fit-fit-fit.

A handful will keep fitting their systems…

…and fitting and fitting…

till the system fits…

…themselves.

When you hear that fitting sound come through, like a broken bone being set and making a loud popping or snapping sound, you know that you have a fit.

Once a successful system fits you, it is then capable of yielding infinity.

 

 

 

 

 

 

 

 

Scaling Up

When you find a system… 

… that works… 

… what’s the next step? 

Plunge? 

Wait. 

Look left and right. 

Meaning? 

Look at your basics. 

Are they in place? 

Meaning? 

No worries about food on the table? 

No worries about kids’ education funds?

Basic family luxuries in place? 

No? 

Get these together and going. 

Yes. 

Ok. 

Go for it. 

Scale up. 

Your decision to scale up should at no time endanger your basics. 

You’re scaling up from  your extras.

You’re scaling up with stops in place. 

If your stops are hit, you’ll change your system till it works again. 

You will not borrow from your basics. 

You will wait for your extras to accumulate, and divert these into scaling up. 

Having gotten all that out of the way, let’s cast a glance at the concrete process. 

1x is working, or so you say. 

In fact, you’re sure 1x is working. 

Ok. 

Now do 2x.

Working? 

5x.

Can you take it? 

Do you sleep well at night? 

Fine. 

10x.

Working? 

Family life intact? 

Basics intact?

Fine. You take it from here. 

Where do you plateau? 

Right before a level where something might get disturbed. 

It’s really that simple. 

Happy scaling up! 

🙂 

What’s the mild pain for?

Carrying forward a niggle?

Something that doesn’t stop you from performing, though?

However, something that nags?

Can’t stop to get it out of your system?

Momentum doesn’t allow you?

When you do stop to get it out, it doesn’t go away?

Is it more mental?

Or more physical?

Can’t decide?

Don’t know what to do?

Who to ask?

What if the hospitals grab you?

Make your wart into a cancer?

Are they then ever going to let you go?

Naehhhh.

Totally stumped?

We’ll, I’ve got something for you.

Are your ears standing up?

Can’t believe your luck?

Could Nath be bee/essing?

How does he know about all this stuff?

What makes him an authority?

Why should I trust him?

Well, don’t.

Is it costing you to listen?

Well, then listen. No harm.

So, as I said, I have something for you.

Are you ready?

Here goes.

Two words.

Embrace it.

Yeah.

Yeah, embrace the niggle.

Make it drive you on.

Make its mild pain give you quality output.

Milk it.

Make the niggle your advantage.

What if it goes away?

Halleluyaa.

You’re pain-free.

What if it doesn’t?

It then becomes your secret weapon.

That’s like buttering your toast on both sides.

🙂

Core-System Maintenance

First up, one needs to discover one’s core-system.

That’s a big chunk.

We’ve spoken about it. Again and again.

Why?

Meaning, why was it required to speak about this again and again?

We have problems putting our core-system together, that’s why.

Why do we have these problems?

We fail to sort properly. What belongs in? What needs to be kicked out? We’re not able to answer these questions properly.

People, what is working? While this thing is working, are we comfortable? Yes? Lastly, is this thing looking lucrative? Yes? Keep it.

Is something not working? Kick it out.

Look for the next thing that works.

Find three or four things things that work.

Intertwine them into a core-system.

That’s it.

It’s that simple.

Maintain your core-system. Tweak it upon requirement. If something stops working, replace it.

Yeah, even maintenance is that simple.

When will we acknowledge that…

… the best things in life are not complicated or sophisticated, but…

… simple?

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!

🙂