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Trading Do you have the necessary personalities?

Discussion in 'Shares' started by wdongli, 15th Jun, 2011.

  1. wdongli

    wdongli Well-Known Member

    Joined:
    31st Mar, 2010
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    1,292
    Location:
    Perth
    It should be acceptable to say if you want to be winners in the market for long enough time you have to get the following personalities without matter what system or tools you prefer:

    1. organized playing
    2. disciplined to follow the rules and principles
    3. self-reliant on judgment and decision
    4. analytical capability to reason for your conclusion or ideas of the consequent scenarios, profit or losses

    ***
    One acid test to tell whether you have these four characteristics of winners is

    What do you feel now:

    Painful with the losses you feel hard to sustain?

    Indifferent since GFC ate too much your capital and you missed the V-shape recovery?

    Anxious with the holding whose price just comes down and down everyday?

    No worries but confident since you still have some margin of safety for your portfolio?

    If you are painful, indifferent, and anxious in the selling storms as what we see in the market, something wrong in your mind. Don't complain, don't curse, don't cry but check how could you make your mind better.

    ***
    By far, I still fell fun to see the storms in the dream land. One time loss if affordable, is not problem and don't need to stop the loses desperately for more losses. When you would make more losses? Selling on the fire. Is it common sense and life logic?

    You could declare you are genius but you do like to make losses, more losses, and unaffordable losses, you would be got rid off from the market sooner or later even we could twist thousands or millions of words. Genius falls down is the normal in the market. So we need to be a little bit more fool.

    Something you just could not give up under any conditions: buying lower than 90% of the market crowd, which would be sure statistically you have little chances to lose your shirts.

    ***
    Don't worry others are selling for their losses which is normal in the market. You paid too much to buy something and then you have to sell even you could be a little bit wise than the crowd.

    When the losses are big enough, everyone would be fearful what happen if it would be lower! In the losses you could not have any hope to for future, you could not be wise or at least the frustration and miscalculation would discount your wisdom without questions!

    Don't worry mate is much easier to say than to do if you are losers. Don't be cheerful sir is hard to follow if you make the killing. It is human nature and the best way is don't let the losses eat too much of your souls under any conditions under any flag, speculation, trading, passive or active value investment!

    https://wdongli.wordpress.com/
     
    Last edited by a moderator: 15th Jun, 2011
  2. wdongli

    wdongli Well-Known Member

    Joined:
    31st Mar, 2010
    Posts:
    1,292
    Location:
    Perth
    How could we be analytical?

    In the market as in any fields else of life, we need to be organized, disciplined, self reliant, and analytical if we really want to be winners in long term. We should all know that but few of us could figure out or would like to figure out how we could be so or would like to be so even we know how we could.

    It is not just about the environments, a few words to show us we know. It needs the passion, the gut to take the pains to change our behaviors. Could you organized with the discipline? Could you be disciplined without self-reliant minds which have the necessary knowledge as the most powerful force? Could we be organized without analytical skills? These four characteristics usually and should be integrated together.

    Have you ever asked the following questions?

    1. How safe (likely to continue being paid) is the company’s dividend?
    2. Could the company fund its needs internally if external sources of capital suddenly become scarce or prohibitively expensive?
    3. Would the company be able to continue meeting its obligations if its business turned down sharply?

    Have you organized all to answer these questions before your buying decision? Have you been analytical to get your conclusion which is best buy for best margin of safety? Have you been the steel nerves to hold your position when the whole market cries into its hell? Do you always choose the way required the least efforts?

    In the market it is easiest way to blame the environment, the others, and cry in the ruins or cheer at the peak even it would crash tomorrow. When you choose the least effort way, you choose to enjoy what market would give to you. Any enjoyment to human being needs to pay for some resources.

    In this sense, if you really want to be organized, disciplined, self-reliant, and analytical, you have to know "no free lunch!" If you own too much and could not service what you own, you would be reckoned sooner or later as Greece has shown!

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    Last edited by a moderator: 19th Jun, 2011