In Michael Palin’s travel series ‘Full Circle’, Palin talks to Sokum, a Zen Buddhist monk. I jotted down the brief conversation that takes place between them:
When I read this I think about oneness, of our perception of tasks in relation to time, of an even allocation of one’s energy, of learning from others but not without reaching deep into oneself. Much food for thought. |
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What Predictions Say About Us
Four Basic Traits of Successful Investors
1. They look at objective indicators. Removing the emotions from the investing process, they focus on data instead of reacting to events;
2. They are Disciplined: The data drives decision making with pre-established rules. External factors do not influence them;
3. They have Flexibility: The best investors are open-minded to new ideas, or revisiting previous thoughts;
4. They are Risk adverse: Not always obvious to investors, it is a crucial part of successful investing.
A Fixed Mindset or A Growth Mindset
Trader A underperforms for a month and meets with the AnirudhSethiReport Team. The ASR Team asks why Trader A thinks he is not doing as well as he can. Trader A claims his underperformance relates to where he is sitting, his filters program being buggy, and the girl he is dating. ASR Team Member offers some adjustments which Trader A finds upsetting since he does not believe he should need help. Trader A finishes with: “I guess I am just not that good of a trader.”
Trader B underperforms for the month and meets with the AnirudhSethiReport Team. The ASR Team Member asks why Trader B thinks he is not doing as well as he can. Trader B explains he is underperforming because he is in the wrong stocks. Trader B explains his plan to be in better stocks. The ASR Team Member Trader offers some adjustments which excite Trader B since he is always interested in getting better. Trader B finishes with: “This will help me find better stocks and do much better next month.”
Are you Trader A or Trader B? Do you have a fixed mindset or a growth mindset?
Do you have a fixed mindset or a growth mindsetsurvey software
Bob Bowman, The Golden Rules -Book Review
How many times does one have to read good advice before acting on it? I don’t know. I for one continue to struggle. This time the advice comes from Bob Bowman, Michael Phelps’s coach, in The Golden Rules: 10 Steps to World-Class Excellence in Your Life and Work (St. Martin’s Press, 2016), written with Charles Butler.
The rules are straightforward:
1. A champion sets a “dream big” vision
2. Adopt an “all-in!” attitude, not a “get out!” one
3. Take risks—and then enjoy the rewards
4. Short-term goals lead to long-term success
5. Live the vision every day
6. A team approach can inspire individual success
7. Stay motivated over the long haul
8. Adversity will make you stronger
9. When the time comes, perform with confidence
10. Celebrate your achievement, then decide what’s next
Following them is something else.
2 Questions & Answers For Traders
It is impossible to make money trading without an edge.
There are many ways to create an edge in the markets, but one this is true—it is very, very hard to do so. Most things that people say work in the market do not actually work. Treat claims of success and performance with healthy skepticism. I can tell you, based on my experience of nearly twenty years as a trader, most people who say they are making substantial profits are not. This is a very hard business.
Every edge we have is driven by an imbalance of buying and selling pressure.
The world divides into two large groups of traders and investors: fundamental traders who base decisions off of financial analysis, understanding of the industry and a company’s competitive position, growth rates, assessment of management, etc. Technical traders base decisions off of patterns in prices, volume or related data. From a technical perspective, every edge we have is generated by a disagreement between buyers and sellers. When they are in balance (equilibrium), market movements are random.
Number of economic forecasts vs chance one will be correct.
10 One Liners From Bernard Baruch
From the SAME AS IT EVER WAS file: Bernard Baruch, a colleague and friend of Jesse Livermore’s, who made a fortune shorting the 1929 crash, and then who later advised presidents Woodrow Wilson and Franklin D. Roosevelt on economic matters, listed the following investment rules in his autobiography published in 1958 entitled Baruch: My Own Story. These rules are still as applicable today.
1. Don’t speculate unless you can make it a full-time job.
2. Beware of barbers, beauticians, waiters–of anyone–bringing gifts of “inside” information or “tips.”
3. Before you buy a security, find out everything you can about the company, its management and competitors, its earnings and possibilities for growth.
4. Don’t try to buy at the bottom and sell at the top. This can’t be done–except by liars.
5. Learn how to take your losses quickly and cleanly. Don’t expect to be right all the time. If you have made a mistake, cut your losses as quickly as possible.
6. Don’t buy too many different securities. Better have only a few investments which can be watched.
7. Make a periodic reappraisal of all your investments to see whether changing developments have altered their prospects.
8. Study your tax position to know when you can sell to greatest advantage.
9. Always keep a good part of your capital in a cash reserve. Never invest all your funds.
10. Don’t try to be a jack of all investments. Stick to the field you know best.