Sunday, March 31, 2019

1,000,001 reasons

Human are so mentally wired to SEEK employment and preferably LIFE EMPLOYMENT!!!. Actually this is the most disservice one can do to yourself. It is about selling your TIME for money. It is about your TIME buyer benefiting not only your time but your brains as well!!! Now let us think if you seriously do think if you are capable of using your time and your brains for your own benefits.

When we deal with money, we are dealing with either profits or losses. Fine.... when we make profit. What happen when we make losses??? Do we buried them and avoid analyzing how it happened? Avoid this matter completely and never re-open???

Losses to me are more precious than gold or diamonds. The losses allow me to discover my weaknesses and where I need to improve and beef up my defense.

Almost all the stock pickers are ONE way mind track. BUY mindset. Looking and digging for stock(s) to buy. Next it must be supported by 1001 reasons the selection is a BUY. All stock pickers are always beating their chest to tell the world their stars. How many will blow their trumpets to announce the failed fallen starts despite back by 1001 good reasons why you should be holding the stocks!!!

Over the last 31 years, trading my own funds, managing  private portfolios, advising clients, .........and the list goes on .......one of the worst kind of people I met are the ones that will bury their losses, close the books and never even take the effort to try understand what happened, how did they make the fatal mistakes and how to improve to avoid mistakes in future. The group of people will conveniently walk away and try something else. Unfortunately there are many of such people.

Are the reason to support why a particular stock move up important???? Truthfully, my honest answer is NO. Why? There are 1001 people or more with 1,000,001 different reasons why the stocks should go UP. But what is critical and less OBVIOUS and BLIND to all if not most are ...people are willing to pay more to keep the price UP for the 1,000,001 reasons including your reason(s).

Or in simple English, there are greater fools willing to buy higher believing price will continue to go up. Some will rationalize with Horses mouth, fundamentals, candles ... u name them ... we got them.

Over the year, every weekend is a time for me to reflect and re-look in making my system SIMPLER and SIMPLER over time knowing there is a LIMIT to how long and how far a price can move. As long as the there are people willing to buy higher, than the price will continue to rise or at least not decline. We need the last greater fool to jump in than we will see price stop rising or start to decline. To look at the opposite when people are willing to sell lower, price will continue to fall or at least not rise. Again, we will need the last desperate seller to sell out only than we will see price stop falling or start to rise.

I am talking about COMMONSENSE instead of the 1,000,001 reasons of WHYs!!!!

The inconsistent performance is due to people so wired up with 1,000,001 reasons and so blind to what is OBVIOUS  
  

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