From Target to Target

What’s your target?

Big one?

Fine. Good for you. Nothing wrong with having a big target. Go for it.

Big targets appear far.

That will need to be tackled.

Why so?

Because big targets are big, they take … you guessed it … time.

Getting to the big target requires handling time.

Yeah, that’s the killer.

Barely anyone around claims to manage time successfully.

Managing time can also mean inaction.

Barely anyone acknowledges that.

Time does us in.

We lose sight of the big target.

Game over?

Or is it?

No, not game over.

Nobody’s telling anyone to not have a big target.

Have it. Fine.

However, have many small ones.

Yeah. Many small targets.

Move from small target to small target.

That’s how you bridge your month, week, or even your day.

Oh, one other thing.

As far as the big target is concerned, forget about time.

Then, as you move from small target to small target, and you’ve forgotten about time, well, voilà, guess what just arrived…?

Yeah, your big target.

Cheers!

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Finding your Groove

Form matters.

Form as in – shape.

What’s the implementable shape of your strategy?

You might have identified your market strategy after a lot of effort.

However, you are still not succeeding with it.

You know it’s the right strategy for you.

What’s off?

Why is your strategy not making you money?

It’s probably not being implemeted in sync with your character-, time- and risk-profile(s).

Your strategy is not in sync with YOU.

Bring it in sync, and then implement it.

You will see the difference.

Tone it down. Tone it up. You know yourself. By now, you’ve also recognized your risk-profile. Play with time. Which time-frame are you most comfortable with?

Make your strategy an extension of yourself.

Sleepless nights means you are doing it wrong.

Keep fitting-fitting-fitting till there’s total synchronization.

If you are not able to totally fit the strategy even after solid tweaking, look for a new strategy.

When a strategy has an edge, and is successfully fitted to oneself, it can be implemented with success.

Find your groove.

What does that mean?

It means the creation of circumstances for yourself where you are able to implement the succesful strategy again and again and again.

The strategy should make you feel like going for it repeatedly.

Nothing in your environment should distract you enough to make you fail to implement the successful strategy. Try and bring it on auto-pilot as much as you can. If something manual remains, try and create a life for yourself where that manual step can be repeated with ease.

There will be many disturbances.

You’ll need to attenuate these enough to put the manual steps in motion.

That is the toughest part.

Constraints keep cropping up, and we are not able to implement because of them.

Yes, the most difficult part is for your groove to keep churning despite constraints.

Finding your groove is the precursor to maintaining your groove.

Stocks and the Art of Sitting

When can you sit?

When you’re comfortable.

It’s as simple as that.

When can you remain comfortable over very long periods of time?

When you’ve bought with appropriate margin of safety. That’s when.

Not enough margin of safety at time of purchase means jumping around and tension everytime the market rumbles.

Do you want that?

Are you investing to be on the roller-coaster day in and day out?

If yes, why are you investing in the first place?

Why don’t you just trade?

Be on your roller-coaster and recognize what you are doing.

There’s nothing wrong with being on the roller-coaster.

However, there’s something hugely wrong with being on it and not know that you are on it.

Instead, you have told yourself that you’ve pickled away your doubloons safely for a lifetime.

With inadequate margin of safety at the time of purchase, nothing could be further from the truth.

Why?

Biochemistry.

It changes when there’s tension.

Due to a changed biochemistry, we make mistakes.

We sell at a bottom, or we double-up thinking it’s the bottom, only to sink further, and then we actually go and sell at the bottom.

Bottomline is, we are likely to make vital mistakes if there’s something disturbing us.

Let’s remove the cause of the disturbance, so that we can go on to discover the art of sitting.

While investing, let’s buy with adequate margin of safety.

What are your Millions Worth?

Sure, today they’re worth…

…millions.

Nobody’s taking that away from you.

However, tomorrow is a different story.

What will be the shape of your wealth in the far future?

In what form will it be stored?

Identify that now.

Why?

Because you can start pickling away in that form, little by little, right away.

Moving a chunk in one shot is tricky.

You don’t do it unless you’re absolutely sure.

You don’t bet the farm – on anything – period.

You need to move things quantum by quantum, over decades perhaps.

Final destination needs to tally with your risk-profile.

If it doesn’t, you’ll end up being jumpy and uncomfortable, and you’ll make a mistake.

When it’s about your life-savings, there’s no margin for error.

Why has one taken such a large chunk of time into the equation?

You see, when time is expanded long enough, difficult problems becomes easy to solve, because one ends up actually taking time (read pressure) out of the equation. Time is quasi infinite, so one doesn’t worry about it anymore. One has TIME to think things over and decide at leisure.

Also, over the course of a large chunk of time, you might realize that your risk-profile has changed, and that you are not comfortable with the final destination anymore.

That’s fine.

Change the final destination.

You define the rules, remember.

The bottom-line is that in whatever shape and form your wealth is stored in the end, that shape and form needs to address everything you wish that wealth to do and be.

There’s a lot of thinking that needs to go into this.

Do that thinking now.

It pays to be financially literate.

Nobody really teaches you financial literacy in school or college. Bookish knowledge is not financial literacy. Field knowledge is.

You’ve got two options.

Get financially literate on your own by playing the field, making mistakes, and learning, or…

…find someone who is already financially literate, and learn from him or her, from his or her mistakes.

Whatever you do…

…do it now…

…to ensure that your wealth not only remains intact…

…but also continues to grow.

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. 

Going for the Jugular

It’s time.

Why…is it time?

And, time for what?

It’s time to go for the jugular.

Meaning?

There comes a time, when, after working hard, struggling, doing the whole jig, the rigmarole, you achieve your basics. 

Well done. Pat on your back. 

Then you secure these basics. 

Forever. 

If you can. 

Wonderful. More pats.

Worry factor is now out of the equation. 

Your family is secure. 

Food, safety, education, all basics intact.

Fantastic. You deserve an award. Not that anyone’s going to give you one. Frankly, nobody could care less. Never mind. You know in your mind that you’ve achieved a milestone, and that’s enough for you. 

Whats the next step…

…for you?

Jugular. 

What is this jugular?

Multiplier.

X-factor.

Call it what you will.

What does this mysterious thing do?

Better question is, what is it capable of?

You’re looking to multiply your networth. 

Isn’t everyone?

This is different.

Why?

Because it is coming as a logical conclusion, and not as a first-step with no experience and no secure basics. 

You’re keeping your head-earned basics secure. 

Nothing is touching these. You’ll be surprised at the kind of courage secure basics give you to act further. 

Next, you’ve identified an area where your skill-set can be leveraged into huge profits with minimal risk. 

Specifically in the market, these areas are abundant. 

So what exactly will you be doing?

Playing on a minuscule portion of your net worth. Let’s say not more than 2 %.

Leverage.

Stoploss.

Profit-run.

Position-sizing. Scaling up upon profits. Scaling down upon losses. 

Overcoming your demons. 

Fear.

Worry.

Hypertension.

Exuberance.

Hubris.

Complaecency. 

Going beyond. 

Multiplying.

Going for the jugular. 

Multiples obey skewed mathematics

Income-oriented linear growth… 

… is single-digit. 

There’s something safe about it. 

It’s going to be there tomorrow, and after that. 

Safety means less return. 

You’re ok with that as far as basic income is concerned. 

Not so the case when it comes to wealth. 

With wealth, the multiple comes into play. 

Multiples dance to a different tune. 

The search for multiples can lead to negative return – for a while at least. 

It’s risky. 

The level of reward is coupled to a corresponding level of risk. 

In comes time. 

Wealth-play is palatable because of time not pushing you to the wall. 

With time on your side, the ingredients of your cooking-pot have ample opportunity to sprout and grow into big trees. 

If growth is not able to take off owing to lack of circumstance, this becomes the breeding ground for negative return. High deductibles add to the bleeding. After all, it’s wealth you’re seeking to generate, and there will be a little blood. 

Such is the game. 

If you can’t stomach the ride till the multiples emerge, play the income-game full-time instead. 

However, once you start to digest the wealth-game, you realize that is really quite headache-free and pretty much an auto-pilot avenue. 

You’ll even start to like it when the first multiples emerge!