Archives of “gentleman” tag

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Excellence Is A Drive From "Inside"

  
Education, Life
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excellence793681A gentleman was once visiting a temple under construction. In the temple premises, he saw a sculptor making an idol of God. Suddenly he saw, just a few meters away, another identical idol was lying.

Surprised he asked the sculptor, “Do you need two statutes of the same idol”. “No” said the sculptor. “We need only one, but the first one got damaged at the last stage”. The gentleman examined the sculptor. No apparent damage was visible.

“Where is the damage” asked the gentleman.

“There is a scratch on the nose of the idol. Where are you going to keep the idol”.

“The sculptor replied that it will be installed on a pillar 20 feet high. When the idol will be 20 feet away from the eyes of the beholder, who is going to know that there is scratch on the nose?” The gentleman asked.

“The sculptor looked at the gentleman, smiled and said “God knows it and I know it “.

The desire to excel should be exclusive of the fact whether someone appreciates it or not. Excellence is a drive from “Inside” not “Outside“.

Trading Wisdom for Traders

  
  Education
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This exchange with a gentleman named Ed Seykota, who turned in a healthy 250,000 percent return for his clients over sixteen years, caught my eye:

What are the elements of good trading?
The elements of good trading are: (1) cutting losses, (2) cutting losses, and (3) cutting losses. If you can follow these three rules, you may have a chance.
How do you handle a losing streak?
I handle losing streaks by trimming down my activity. I just wait it out. Trying to trade during a losing streak is emotionally devastating. Trying to play “catch up” is lethal.

 A little later in the interview, there was this:

What are the trading rules you live by?
a. Cut losses.
b. Ride winners.
c. Keep bets small.
d. Follow the rules without question.
e. Know when to break the rules.
Your last two rules are cute because they are contradictory. Seriously now, which do you believe: Follow the rules, or know when to break the rules?
I believe both. Mostly I follow the rules. As I keep studying the markets, I sometimes find a new rule which breaks and then replaces a previous rule. Sometimes I get to a personal breakpoint. When that happens, I just get out of the markets altogether and take a vacation until I feel that I am ready to follow the rules again. Perhaps some day, I will have a more explicit rule for breaking rules.

 Never underestimate the importance of psychology and attitude as crucial elements of successful trading.

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