Monday, November 8, 2021

SHIP - Wind - Sail

The price trend goes up and down like a tide rushing to the shore and with draws. In the midst of all these back and forth actions there is sub-actions which is called wave. The waves like the tide are similar except they are smaller scale and co-exist.

Instead of trying to figure out why the Tide behaves and act a certain way, up, down, back and forth which can be a Nobel prize, we accept the existence of this state. The wave the same but a smaller scale of tide.

Either we learn to accept and see the financial markets as (1) an unfriendly dangerous place or (2) an accommodating acquaintance?  It is our choice and our mental state.

I have always treat the financial market as (2) Always moving non-stop on its own like a wind blowing. Whether I learn to use the wind force to my favor like a ship with a sail on the water or not, it is my choice. Whether I know when and how to navigate the ship will depend on my skill and experience. When do I raise the sail and when do I lower the sail.

As long as mentally, we treat the financial markets as a hostile and treacherous place, we spend more time mentally focus on "enemies" instead of enjoying the journey.

Let the wind stop blowing and we lower the sail. Instead of trying to forecast and anticipate when the wind will subside or stop to lower the sail before the wind actually stops. Once we learn to understand how to use the wind force to our advantage than it becomes a friend and not something we are fearful.

If we raise the sail up when there is no wind, we wasted our effort. If we don't raise the sail up when the wind is blowing, we wasted the opportunity. When it rains, we lower the sail. Know when to do what. Know when NOT to do what.

The astronomer or someone on the ship will have the knowledge of looking at the stars and the moons for guidance. Today we have charting technology like a GPS to show us the journey. Unfortunately, the pressing desire to know the future leads to the abuse by many inexperienced users.

The whole game is not about proving SUPERIORITY like a Gladiator battle. 

I have learnt overtime to be patient and act when the time is right flowing with the tidal force. A journey that is long and lonely.   

Instead of looking at the computer screen coming with a preconceived mental state or opinion the market SHOULD behave this way or that way, I come humbly to see what it has done in the past, now and what it MIGHT do today and will it continue. What is my tentative plan(s) IF it did not turn out the anticipated path?  

The only times I get into collision with the market trend is when (1) I don't have my tentative plans or (2) I fail to act on tentative plans as needed. 

The only reason why I am able to go into different financial markets is because I learn to treat financial markets as a friend and not a foe/enemy. Sometime I like to treat it as a friend in the stock market. Sometime it is a friend in the commodities market. Sometime it is a friend from the currencies market. Sometime we all meet together and have a party.

Learn to see and appreciate the wonders of the markets and not the fear.

A leaking ship will sink even if the wind is strong. So check for leaks and weakness in the structures than set the sail up and go sailing.

Your mental state will ultimately decide whether your action is accommodative or prohibitive.    May the force be with You.

 

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