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Forgiveness

One of Napoleon’s soldiers committed a crime — the story doesn’t tell which crime — and he was sentenced to death.

On the eve of his execution, the soldier’s mother implored that the life of her son be spared.

“Dear lady, what your son did doesn’t deserve clemency.”

“I know,” said the mother, “If it deserved, it wouldn’t really mean forgiveness. Forgiving is the capacity of going beyond vengeance and justice.”

As he heard these words, Napoleon reduced the soldier’s death sentence to exile.

Stephen Hawking: Humanity Won’t Survive Another 1000 Years on Earth

 Theoretical physicist Stephen Hawking says that humanity won’t make it through the next 1,000 years unless we find a way to leave Earth.

 “We must continue to go into space for the future of humanity,” Mr. Hawking told an audience at the Sydney Opera House, where he appeared virtually, in holographic form. “I don’t think we will survive another 1,000 years without escaping beyond our fragile planet.”

Hawking was filmed in his office at the University of Cambridge, in the UK, and the footage was sent via San Jose for processing then on to Australia to create his image on stage.

“He’s worried about the future of the human race. You know, he thinks that human beings are, I suppose naturally aggressive,” said Professor John Webb, the director of the lecture series at the University of New South Wales that made Hawkings talk possible.

“That may have been useful at some point in the early history of humanity enabling us to find food and get a partner and things like that, but he thinks that aggression that remains with us today is now the thing that could well end up destroying us.”

“I think he’s put a time on it to make us realise we’ve got to take better control of what we’re doing.”

(more…)

"Common Sense" Rules for Traders

 

commonsense

  • Divide your capital into 10 equal parts, and never risk more than 1/10 of your capital on any one trade.
  • Use stop-loss orders and always protect a trade when you use a stop-loss order by using reasonable price limits.
  • Never over-trade and adhere to your risk management rules.
  • Never turn a profit into a loss. If you are using a stop-loss order, then raise your stop-loss so as to lock in a profit. (more…)

10 Useful Reminders

1.) The big money is made in holding good companies with the right business model for the long term rather than in short term trading.

2.) While the big move has already occurred, there is still room for stocks to move higher over the next 12 months.

3.) The risk/reward trade-off isn’t attractive enough to move to overweight.  Recommend neutral positions.

4.)  Life is not about perfection on Day 1. It is about making those little choices every day and adjusting along the way. As the famous Steve Jobs (God bless his soul) said, you can only connect the dots looking backward. Life is not about getting a chance; it’s about taking a chance.  – Jay Jaboneta via Rappler (On being men for others) 

5.) A publicly listed company, well distributed and well owned, wrests control from the founders and gives it to thousands of faceless shareholders.

6.) Sometimes it’s best to conserve energy, to play the long game, and not to risk everything for the sake of a short-term win. (more…)

Open Mind

Nothing is infallible in the stock market — no theory, no measure of the market be it technical, fundamental, or cyclical. The basic tenet of any investment or trading methodology worth its salt should be that it’s not infallible.

Those that demand the least from a method will gain the most from it. Those who demand the most from a method will be the ones most frustrated by it.

The only way to gain control is to give up control. The only way to gain control is to give up the idea of trying to have control.

The market is more art than science: The good and bad part of any genuine approach to the market is that it requires interpretation, which is what makes markets and opportunity, but is bad because it’s frustrating.

The study of the market is part theoretical and part philosophical. That’s what makes it so intriguing. The market is a mystery. Despite all the artificial intelligence and computer power available, no one has solved the mystery. There’s no sure thing in the markets.

This is no-man’s-land. Every technical benchmark and data point seem but an island in the market’s stream of confusion.

As a trading bro said to me over the weekend, “If you have an opinion in this market, you’re wrong.”

Keep an open mind.

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