Archives of “napoleon” tag

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Mistaking luck for skill.

  
  Education
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good-luckAre you lucky? Napoleon was once asked whether he preferred courageous generals or brilliant generals. Supposedly, his response was “neither”, for he preferred lucky generals.
You may or may not agree, but there are some things we can’t explain (just yet), and luck is one of them. Some people have the instinct — or luck — to get out of bad trades at the right time. Others simply just don’t have it. Although some people may actually have the instinct or ability to make the right market moves; most of us probably just rely on luck to get on the winning side of a trade. So, the question here is: how lucky are you?

The Emperor’s Three Questions & Answers for Traders

  
  Education
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Tolstoy’s story “The Emperor’s Three Questions” poses three questions:

1. What is the best time to do each thing?

2. Who are the most important people to be with?

3. What is the most significant thing to do at all times?

In the story, the Emperor traveled far and wide in his Kingdom to find the answers.  One day, he came upon a hermit who lived in a small hut atop a high hill. When asked these questions, the humble hermit replied:

1. The most important time is now, because that is the only time over which you have  power and control.

2. The most important person is the one you are with right now because you never know if you will be with that person again.

3. The most significant thing to do at all times is be happy and share that happiness with the person you are with.

The trading lessons are simple—but not so easy:

1. Be with the trade you are in at the moment.  Stop trying to control anything but your own trade.  The markets are going to do exactly what they want to and when they want to. YOU have the power to control what YOU feel, think, believe and do.

2.  All that matters for you is the trade you are in.  You may never see that trade again.  Savor it, cherish it and be with it for as long as it lasts.

3. Celebrate your victories with yourself.  Celebrate the trade and with the trade.  The instruction is to refrain from boasting or grandiose behavior when you make a winning trade.  The markets will humble you, and pride always comes before a fall. Napoleon said that the most dangerous moments come with victory. Decry and avoid hubris.

Also celebrate your defeats with yourself and the trade because they are mistakes.  Mistakes are our greatest teachers because it is through them that we learn. What do we learn?  Not to make them again!

Constantly strive to look inward, to know yourself, to raise yourself to the highest level of authenticity.  Be rigorously honest about who you are.

Taking personal responsibility for your thoughts, feelings and actions is the first step to true inner peace—both in trading and in life.  Never forget the ten most important words you can ever and always ask yourself:

Am I doing the best I can do right now?

The ultimate victory in competition is derived from the inner satisfaction of knowing that you have done your best and that you have gotten the most out of what you had to give…Howard Cosell

Some Money Launderers are “More Equal” than Others

  
Analysis, Education
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“All animals are equal, but some animals are more equal than others.”
– George Orwell’s Animal Farm

It’s been many, many years since I read George Orwell’s Animal Farm, but the message conveyed in it will remain with me forever.  The book is many things, but more than anything else, it is a portrayal and critique of human nature and the political systems that we create. For those that need a refresher, or have not read the book, here’s the basic plot.

There’s a farm headed by a Mr. Jones, who drinks so much he becomes unable to take care of the farm and feed the animals.  Over time, the animals (in particular the pigs), decide human beings are parasites and the pigs lead a revolt and run Mr. Jones off the property.  They change the farm’s name from Manor Farm to Animal Farm and create a list of 7 commandments.  They are:

  1. Whatever goes upon two legs is an enemy.
  2. Whatever goes upon four legs, or has wings, is a friend.
  3. No animal shall wear clothes.
  4. No animal shall sleep in a bed.
  5. No animal shall drink alcohol.
  6. No animal shall kill any other animal.
  7. All animals are equal. (more…)

TRADING QUOTES

  
  Education
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Planning, Discipline & Patience.
  • ‘Predicting rain does n’t count; building arks does’: Warren Buffett’s Noah Rule.
  • “To know and not to do, is not yet to know” – Courtesy of Tom Witters.
  • ‘It’s easy to have faith in yourself and have discipline when you’re a winner, when you’re number one. What you got to have is faith and discipline when you’re not a winner.’ – Vince Lombardi
  • ‘After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight!’ – Jesse Livermore

Fear

  • ‘Never let fear of striking out, get in your way’: Babe Ruth.

Perspectives

  • ‘It’s tough to make predictions, especially about the future,’ – Lawrence Peter ‘Yoggi’ Berra.
  • “go as far as you can see, and when you get there , you will see further.” –
  • anonymous
  • ‘Don’t worry what others think… They don’t do it very often’ – Courtesy of Mark Carstens.
  • “A little learning is a dangerous thing, but we must take that risk because a little is as much as our biggest heads can hold.” – George Bernard Shaw.
  • “Those who cannot remember the past are condemned to repeat it” – George Santayana.
  • “Glory is fleeting but obscurity is eternal” – Napoleon
  • ‘A long term investment is when I break even.’ – Courtesy of David Wong. (more…)
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