Archives of “January 16, 2019” day

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Defining Risk

  
  Education
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Defining Risk“Take a chance! All life is a chance. The man who goes the furthest is generally the one who is willing to do and dare. The “sure thing” boat never gets far from shore.”
Dale Carnegie (1888 – 1955)

In 1998 Economics Professor and Nobel Prize winner Paul Samuelson (1915 – ) noted that:

“Many people now believe that if they simply hold stocks long enough they will not, lose money for statistics have shown that since 1926 the U.S. equity market has not suffered a loss in any given 15 year.” (more…)

Explaining "Real" Money To Your Children

  
  Education
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Money is a very important part of all our lives. The understanding of money, how it works, and how we treat it can dramatically improve or diminish our quality of life.

Based on my writings and videos on YouTube, you might think my definition of money is gold and silver, but it’s not. Money is simply a medium of exchange. It can be represented by everything from gold to horse manure. Okay, maybe not horse manure, but it’s not a far stretch with the most popular form of money today being central bank notes loaned out into existence.

The state would love to have you believe that money can only originate from itself, yet people have organically started to use bitcoins and other crypto-currencies as a medium of exchange. Nevertheless, our culture continues to worship fiat currency as if it is the only type of money. I can’t change the fact that at this moment in time the U.S. dollar is the measuring stick for goods and services when it comes to prices. Trying to disprove and dispute this fact was something I struggled with early on when I used to teach my children that only gold and silver were money.

Today, I simply teach them about money as a medium of exchange. (more…)

Try These 6 Points in Life & Trading

  
Education, Life
  1. Review your recent failures – what can you learn from them?
  2. Re-think long-held assumptions – why are you doing things this way? Is there a better way?
  3. Plan for failure – realize you are probably going to be wrong, that it’s ok to be wrong, so plan, adjust, think accordingly.
  4. Plan backwards – decide what you want, figure out what it will take. Work backwards from what you want to do & where you are today. Create a plan to close that gap. Execute it.
  5. Experiment – What experiments or tests can you run in your life today?
  6. Improve by 1% – Every day find one thing that you can get 1% better at.6-number

Max Gunther set forth basic trading principles called The Zurich Axioms

  
  Education
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On Risk:
– Worry is not a sickness but a sign of health – if you are not worried, you are not risking enough.
– Always play for meaningful stakes – if an amount is so small that its loss won’t make any significant difference, then it isn’t likely to bring any significant gains either.
– Resist the allure of diversification.

On Greed:
– Always take your profit too soon.
– Decide in advance what gain you want from a venture, and when you get it, get out.

On Hope:
– When the ship starts sinking, don’t pray. Jump.
– Accept small losses cheerfully as a fact of life. Expect to experience several while awaiting a large gain.

On Forecasts:
– Human behaviour cannot be predicted. Distrust anyone who claims to know the future, however dimly.

On Patterns:
– Chaos is not dangerous until it starts to look orderly. (more…)

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