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Live Your Own Life

  
Education, Life
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A lot of us tend to live our lives based on other’s choices, and not our own. You may have even experienced this yourself. Sometimes, other people feel as if they know what’s best for you. I know I have experienced this, particularly regarding my occupation. “Oh, you are probably going to end up being a Kindergarten teacher”, “You would be a great gym teacher”, “Have you thought about joining law enforcement?” As the days go by, all the suggestions are being piled up. I don’t pay attention to them, because I know where my heart wants to be.

Live your own life, and not how others want you to live it. Let them worry about their own lives. You know, deep down, in your heart, what you want to do, and when you want to do it. You’re the only one who knows what’s best for you.

Trade like a cheetah

  
  Education
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cheetahI read a quote about trading a long time ago that went something like: “Trading consists of extended stretches of intolerable boredom interspersed with moments of sheer terror.”

No terror for me today but I felt like one of my favorite animals – the cheetah. Just sit with orders in the market wait for price to come  so you can pounce on it.

Most people only pay attention to the speed of the cheetah because that part is exciting. But that part only lasts a few seconds.

What they don’t pay attention to is the fact that the cheetah spends the majority of its hunting time lying in wait and silently stalking its prey – “intolerable boredom.”

Waiting, and waiting, and waiting some more for the right situation to present itself.

Yes, that part is boring, but it’s also the most important part. It wouldn’t matter how fast the cat was if it just ran around without a plan. (more…)

John Bogle’s 10 Rules of Investing

  
  Education
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“1. Remember reversion to the mean. What’s hot today isn’t likely to be hot tomorrow. The stock market reverts to fundamental returns over the long run. Don’t follow the herd.

2. Time is your friend, impulse is your enemy. Take advantage of compound interest and don’t be captivated by the siren song of the market. That only seduces you into buying after stocks have soared and selling after they plunge.

3. Buy right and hold tight. Once you set your asset allocation, stick to it no matter how greedy or scared you become.

4. Have realistic expectations. You are unlikely to get rich quickly. Bogle thinks a 7.5 percent annual return for stocks and a 3.5 percent annual return for bonds is reasonable in the long-run.

5. Forget the needle, buy the haystack. Buy the whole market and you can eliminate stock risk, style risk, and manager risk.

6. Minimize the “croupier’s” take. Beating the stock market and the casino are both zero-sum games, before costs. You get what you don’t pay for. (more…)

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