Category Archives: Freedom

Beyond

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There’s a…

…rulebook…

…and then there’s beyond.

The world beyond…

…abounds with freedom.

The freedom to think…

…like no one’s thought before.

To make seemingly absurd connections leading to clarity.

To crunch numbers and patterns without crutches.

To see with multi-dimensional vision using the eye of the mind.

To function beyond, one first needs to learn the rules of the normal, worldly game, by the book.

Followed by repeat implementation.

There comes a time, when a rule is implemented subconsciously, without having to look.

Extrapolate to entire game, whole rulebook, implemented as if on auto, through one’s reflexes.

Get ready for beyond.

One goes…

…beyond…

…without warning…

…when one is ready as outlined above.

Goes, comes back, goes, comes back, it’s quite random.

Bottomline is, how conscious is one while one is beyond?

Journey can last for just a few seconds, or even a second. Example – one has a flash.

Level of consciousness while beyond allows one to address solutions for complex issues.

What’s the bottom for this market?

Ground-reality of war?

How do I solve my home-situation?

What overall pattern is this market gravitating towards?

Ulterior motives.

Etc.

How much of such knowledge can be incorporated?

Can it even be true?

Is it making common sense?

Does one have the confidence to act upon it?

Well, it’s not all going to add up immediately. However…

…repeated performance over many years allow one to make systems.

To gauge reactions.

To develop counter-reactions.

To write a rule-book…

…for implementation of beyond-insights in actual life.

Implemented together with the entire gamut of logical, human rules of the world, an intuitive, self-written rule book to go in tandem is…

… invaluable.

Constants

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Waldermort…

…overplayed his hand.

Thought he had the nuts…

…and bet the farm.

Turns out…

…that the adversary’s hole cards…

…plus the flop, turn and river…

…are leading to a full house.

As opposed to Waldy’s…

…ordinary nut flush.

Waldy is oversmart and a half.

Backfires at times.

This one has backfired at the worst possible time.

Only one result.

Waldy loses…

…everything.

Reserve status.

Serious player status.

Reputation, if there was any.

Loyalty, which was abundant from former allies, but is now…

…not even zero, but minus.

What more can one lose?

Whatever one can. It’s lost.

When this is over, a new methodology of doing everything business and financial will have emerged.

Meanwhile, a few constants remain.

There are areas in the world, where there is growth.

And will be, for the next 25 years.

Like India.

Semblance of stability?

Yes.

Integrity?

Yes.

Win-win attitude?

Yes.

Loyalty?

Yes.

Balance?

Yes.

Clout?

Yes.

Consumption.

Yes.

Period.

Buy India during this fall.

As long as the fall lasts. One year. Two years. Three years. No one knows.

What one also doesn’t know is whether India will give this buying opportunity again.

So, buy India.

Even if it means that you get fully invested during current fall.

That’ll be just great.

Magic

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Sure, …

… nobody said this was a bottom already.

No signs of a bottom.

For all you know, the real correction just started.

So, everyone is asking, …

… why in the world a buyer is buying …

… now.

Confused? No need to be.

First up, please understand, that money enters the market in a planned fashion when position sizing rules are in place.

Oh, there’s one more safety rule.

In a day, only so much goes in, in total.

Let’s say what you are referring to as a bottom comes within, hmm, two days, one day, four hours, one hour… ,

… whenever it comes.

Do you actually believe and / or have the guts to get fully invested in that minuscule time-frame?

Let me answer that for you. NO.

Why am I so clear on this?

Moving big money in one shot when the whole world’s pajamas are falling, and watching it possibly become half in a few days will most likely lead to neurosis and / or psychosis.

It is mentally digestible to keep buying at levels as per the entry quantum allowed by one’s position-sizing algorithm.

Though the overall market or index or sector benchmark might not be signalling a bottom, individual stocks hover around correction levels, threatening to recover from there.

We let them hover.

If they are not declining further from a correction level after a bit, we pick up one lot.

What’s the lot?

It’s a function of one’s networth at that point.

What function?

You decide. Yes. Your decide your own position size at each point thus, as per a mathematical calculation. You can decide to programme this function, for example, in a manner that you go in more when you are winning and go in less when you are losing. Or vice-versa. As per your personality and risk-profile. You call the shots. You are the master of your money and journey.

As time goes by, and as the correction deepens, you have lots of lots in. Ideally, you get fully invested before recovery. Compared with trying to move in fully at the exact bottom, well you might get lucky with the latter option, but it will burn your nerves, and resulting psychosis can last longer than when rational decisions will need to be taken. Not worth it. Position-size, entry quantum, going in bit by bit – this is what our nervous system can handle well without getting damaged. Markets change within months, perhaps weeks, and…

… when the magic happens, you deploy your exit strategy, whatever that is. Be rationally around to do so.

Or, simply, don’t do anything except watching the magic, …

… of a low buying average develop into a multiple.

Hot-Iron Action

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Cockiness, …

…over-confidence in oneself, …

…under-estimation of adversaries, …

… rule the world as if king forever, no matter what, …

… irrespective of domestic and international horrors committed, …

… when an entity exhibits such characteristics, …

… implosion is not far away.

Right. Entity implodes.

Now what?

You’ll get value. Buy it.

Use a small entry quantum.

Buy repeatedly. As value deepens.

Buy as much as you can, so that your buying average gets lower and lower. Needless to say you are buying high-conviction underlyings. Ideally, you are then fully invested during the ensuing mayhem and before some kind of normalcy resumes.

However, when there’s blood on the streets, it’s very difficult to buy. Fear rules. Everyone you know is advising you different things. Your own pants are threatening to slip. One of the best independent indicators to green-signal buying is when every square inch of your body and mind squirms at the thought of buying. Can you teach yourself top buy during such times?

It doesn’t come automatically. We are not born with it. We have to rewire. We need to see such times, more than once, watch others do it right, and learn. Going against the crowd needs courage and self-belief. Comes with time.

How does one identify contrarian times?

At such times, close people will have a world full of advice to offer. It doesn’t matter if one has been doing something for multiple decades, they ‘know’ it better and will ‘teach’ one how to do it properly. If one can recognize such moments, one knows that contrarian times prevail. Why such behaviour? People around us become enthused. Perhaps owing to ‘developments’, the ‘this time it’s different snare’, or owing to some mania that has caught their fancy, or something or the other that has deranged rational thinking. You need to recognize those times when such derangements prevail.

Like now.

And this will continue. Am sensing a huge derangement. Noticing large irrationalities in thinking. Lots of advice flowing in. Noted. This is the time. Identified. Big chunk done.

Fine.

Now, we act.

No second-guessing once identification is done.

We remain active till there’s time to act.

What if…

…after the mid-term election in the US there’s no opportunity to invest in value for a while? Longish while?

Might as well do so when value is available.

Right. Let’s go.

Basics Baby

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In the…

…ongoing…

…and incoming…

…frenzy…

…there’s only one go-to strategy…

…for me.

Basics…

…always.

During CoViD, during which everything was supposed to go bankrupt, one stuck to the ‘Basics, Always’ approach, and the rest became History.

This, today, has the potential to become a CoViD like crash.

First up, there’s been mass AI hypnosis. Everyone and their Aunties are in the loop and are talking AI. No one cares anymore about companies with great fundamentals and a penchant cum track record for metamorphosis. It’s ok. We do, since that’s what counts for a steady, long-term return in the market. We are not greedy. We wish to put away our money safely, not let inflation eat at it, and we would like it to grow over the next twenty to thirty odd years. We’re balanced. We’re basic. We’re simple. We’re the opposite of complicated and sophisticated.

And now, there’s all out war. Provoked. Just to bury Epstein consequences? All pipelines choked. Gold-nugget question being asked in this moment is…

…how should one act?

Should one get swept into the AI madness and buy into abysmally high PE multiples? Infinite PE multiples? Should one buy international stocks? Gold? Bitcoin? Silver? Sit in cash? WHAT?

Answer in such scenarios is SIMPLE, always.

Basics. Baby.

Basics, always.

Basics to the rescue.

What are your basics? Go back to them.

I’ll tell you my basics. I’ve gone back to them since I started buying, February 6th onwards. And I shall remain with them, till I’ve finished buying, or till I’m fully invested, whichever comes first.

Shareholder-friendly managements.

Companies with clean balance sheets.

Companies with zero or quasi-zero long-term debt.

Free cashflow to market cap upwards of 2% for large- and mid-caps, and upwards of 1% for small-caps.

Companies with multi-decade penchants and track-records for / of successful metamorphosis and navigation through disruption.

Margin of safety. Each high-conviction buy lowers average. Mathematics to support buying and selling. A low average has the capacity to quickly give a multiple in better times, from where then one’s principal can be skimmed off to fight another battle, and the profit stays in the market for eternity, on the back of the mathematics of compounding.

These are my basics. Shared with you, with pleasure, to inspire you to find yourself in the chaos. Use these till you find your own. You can pay it forward. Leads to a better world.

One doesn’t need more. Just one’s basics. Basics that are superimposable on the entire market, and when something conforms, there’s action. Like now, for me.

Please go back to your basics at a time like this. That’s why you have developed them. Your happy, go to place. Market success is more about a high-conviction frame of mind with holding power.

The rest, rest assured, will be History. Go for it.

🙂

Take a Bow!

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Hey.

So, what’s our model?

It’s not sector based.

First I thought it was.

I now realize it’s not.

Well, to be honest, our model has various facets.

One of these is on, currently.

Value? Buy. Deep value? Buy.

Objective? Make a multiple fast. Pull principle out. Leave profit in the market for compounding.

Sector?

Doesn’t matter.

Moving on to next facet.

Ok. In range bound markets, what do we do?

No value buying, of course.

Ideally nothing.

However, action does get the better of us, at times, ya, ya, we are all human, and have that video game need. So, in range-bound markets, we do buy, at times, with the objective of making a small profit, slowly. When the profit objective is achieved, principal is pulled out and the profit is left in the market to compound if not required otherwise.

Right. Next facet.

What happens for us in a market that breaks out?

Two things.

First up, we are looking to make a quick let’s say 25%, and then getting principal out. Profit stays in the market to compound, irrespective of the level, ya we have the guts, since that which stays in the market enjoys 100% margin of safety. Secondly, some of the deep value still in the market has made a mega multitude by then, and we can take a call about it. We might or might not liquidate a fraction, depending upon our 2 to 3 year liquidity needs.

Moving on.

What happens to the stuff that gets stuck?

If our world is not falling apart because of that something that’s stuck, that something is and remains for us just another position. Downside is the position going down to zero. Upside is unlimited. We stay or cut, depending on our per saldo existence and / or situation in the world.

Stuff will get stuck. This is the markets baby, not a vacation in Hawaii. [Thought to self – let’s make activity in the markets like a vacation in Hawaii. Hands off, no engagement during market hours, let’s do an Ed Seykota baby, adding a few leg-glances like only handling in GTTs, disengaging after Thursday analysis and market input (3:45 pm to 4:15pm), only to re-engage on Monday morning 8 am to 8:30 am, to punch in GTTs for Monday.]

Very long-term play allows us to work well with even hundred positions stuck, because a handful of lucrative positions will offset these and then some. Perhaps one will even be able to say ‘and then lots’.

Now comes the pointe. This is something I learnt from Dr. Van K. Tharp, God bless his soul. Position-sizing.

Our one entry quantum is a function of our networth.

Make it whatever function you are comfortable with, corresponding to your own networth.

As our networth increases, our one entry quantum increases in size. As our networth decreases, our one entry quantum decreases in size. When we are winning, we set ourselves up to win bigger. When we are losing, we set ourselves up to lose lesser.

Final question – answered here.

Ya, final frontier. We tackle this very maturely.

Why are you getting all this for free?

Free? Please remember, that nothing in life is for free. Not one breath. There always needs to be a karmic field to support an event. No field, no action, meaning this here wouldn’t be taking place.

I’ve taken freely from a lot of people. This is my giveback. Please take freely of this. Don’t feel any burden. All you need to do is to pay it forward, at some stage in your life, when you comfortably can. Help someone in need. Make our world a better place. If perhaps you already are doing so – take a bow!

🙂

Freedom

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What’s the thin line…

…one can tread upon…

…and still lead a satisfying financial life?

Firstly, spending, needs to be met.

Simultaneously, surplus-generation is a must.

Surplus needs to be invested, and must be allowed to compound.

However, no lifestyle requirement stays unmet.

Decent?

Yes. But a very thin line to tread upon.

Why?

For most, more than required gets spent.

For very few, more than required gets invested.

Where do we want to be? Somewhere in between, so that we don’t scrounge our life away, which is not going to solve the equation owing to nagging regrets later.

Having said that, to get a satisfactory investment corpus compounding more sooner than later, saving during the first chunk of life becomes a central theme. This entails being frugal, which goes against the urge to spend freely. How does one win this battle? Many don’t actually. What’s required is a seemingly slow upwards spiral on the back of one’s invested savings. Slowly spiralling upwards, there eventually comes a tipping point, where savings contribute so meaningfully, that one has reached financial freedom. Congratulations. Big one.

It’s ok to reach financial freedom at 50. Even at 60. At 40 it might make us do immature stuff. No one’s ever too far away from losing it all.

Having reached financial freedom, we need to maintain it till we’re alive. We don’t have the 30 odd years to rebuild financial freedom. Once there, we just sheer don’t let it go, because…

… our financial freedom becomes an umbrella for everyone who we encounter in life, from that point onwards.

Potent Pioneers

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Hey.

We define our own roadmap.

Own indicators.

Own rules of action.

Own changes to our rules.

Own interpretations of prevailing market rules.

You get the drift. We have our own way of looking at things.

First up, acting on someone’s opinion leaves us at their beck and call.

Then, there’s the thrill, the kick, of defining a path.

And, lastly, but most definitely not ‘least…ly…(?!?)’, since everything on the path is kind of different, we don’t get slaughtered with the masses.

Also, in our own unique way, we have first mover advantage.

We can do all this, because we’re (almost always) liquid.

Liquidity is ammunition. Just ask a soldier what ammunition is worth in battle.

Liquidity didn’t come to us just like that.

We learnt (from many a beating) how to accumulate it.

Now we’ve learnt, …

… and we’re liquid, …

… and we’ve developed our own unique system …

… with its own unique edge.

This makes us…

… potent…

… pioneers.

Approach

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Hey,

Just did a mental review about my approach to the markets over the years.

Saw how I started out.

What was the motivation?

Strategy?

Mindset?

Outcome?

Then gauged these parameters after being in the markets for ten years.

And, finally, assessed the same as of today, after being in the markets for twenty years.

Here are a few observations.

Approach softened over the years.

Not in quantity. Will come to that in a bit.

No, approach became opportunity-linked.

One didn’t wish that the markets would be somewhere.

One played them where they were, as was worthy of that situation.

One wasn’t tense.

One had rules. Approach was now rule-based.

One enjoyed the approach.

It was relaxing.

It now gave a kick.

Now, there was feeling of achievement.

Of creation.

Of success.

Earlier, all this wasn’t there.

One was tense most of the time.

One followed markets all the time.

Sometimes, sleep eluded.

Now, after market hours, what market? When you don’t think about it, it doesn’t exist, for you.

I’d said I would mention quantity, which has been increasing steadily, since it’s a function of portfolio-size.

So, in a nutshell, benefits abound, upon ever-increasing quantity?

What’s happened?

What’s changed?

Have gotten into a groove.

Found a sweet-spot.

Entered a zone. The Zone, perhaps.

It’s like that ‘perfect’ cover drive, or an optimal trajectory golf drive shot resulting in a birdie for the hole. Don’t wish to use ‘hole-in-one’ here, that would be too much… .

In the Zone, you know things.

Someone outside the Zone will ask how one knows.

Don’t know. One just knows.

One can attach oneself to the swing of the Universe.

One is one with the swing.

It takes time to get into the groove.

For me, make that twenty years.

One becomes mouldable, and flows with the current of the Zone.

I enjoy my approach.

It’s not tangible.

Visibility is not my criterion.

What is, then?

Fulfilment.

If my approach is all I have when I die, I’ll leave with a feeling of fulfilment.

Pipelines

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Replicability of an approach is a pipeline. You can always draw on it for a fresh trade, for example.

Scalability is a pipeline getting broader.

Research sharpens the edges of your pipeline, sustains these well, and founds new paths (pipelines), going forward.

Deep Thought is where one taps the pipelines of the Universe.

Experience builds reflexes, which guard and enhance pipelines. This is intuition in action.

Ability to discern allows judgement to manipulate a pipeline in the correct direction.

Cataloguing provides hindsight, so that the pipeline of foresight is strengthened.

Giving opens up vast positive pipelines for oneself, by creating energy vacuum in one’s immediate environment.

Relaxation allows the pipeline of genius to emerge. Brilliant sparks which have been developing silently, within oneself, burst forward.

Family is a pipeline of joy.

Freedom allows the pipeline of creativity to flow.

Also, detachment allows time for the pipeline of flow to form properly. This is particularly valid in trading. Think of profits being allowed to run, for starters.

If I rack my brains, I’ll come up with more…

…pipelines.

That’s not the point.

The point is to delineate that one’s per saldo self is a net resultant of many pipelines acting in tandem.

These have taken time, effort, fortune, patience, blood, sweat, tears and what have you to create.

I measure my life’s success in seamlessly implemented pipelines on autopilot.

For every long-term, seamless, auto-pipeline functioning optimally and on full, there have probably been fifty discarded efforts.

Whether one is trading, investing or sheerly living a fulfilling life, …

… it’s one ‘s pipelines that provide critical support.

Screen-Time

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Is that a hammer in your hand?

No?

Great.

Yes?

Does everything appear to be a nail?

In the markets, I like to keep buttons away from sight, as a start.

Meaning, that the conditions to bring a button out…

…need to trigger first.

How would I know?

For that, there are alerts.

Meaning that we go on doing other stuff, till we are alerted, that there’s action ahead.

That’s when we activate the concerned button to visible mode.

Taking time, we decide whether this particular button needs to be pressed.

No?

Proceed with other stuff as normal.

Yes?

Press.

Do your accounts.

See how you’ve fared.

Done?

Proceed with other stuff…

…till next alert for button visibility activation.

Why all this rigmarole?

Because we don’t wish to be trigger-happy in the markets.

We take calls when they’re due.

We use time-slots in between calls to live life, tension-free, happy.

That’s one approach to the markets.

I’m sure you have your own.

Maybe yours involves more screen-time.

I respect that.

Mine doesn’t involve too much screen time, to be honest.

That’s the way I like it.

That also doesn’t mean anything as far as volumes or output are concerned.

Lesser screen-time leaves me ample space for other stuff.

I get to live a fuller life-experience.

To each their own.

This is my take.

I respect your take too.

Some takes require maximum screen-time.

Some like it like that.

That’s their life.

Fine.

Respected.

This is mine.

And this is my market screen-time…

…perhaps an hour or two a day, sometimes one, sometimes two.

Something like that.

Value

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Adding value…

…can boil down to…

…taking time…

…to do so.

So we’re cruising along some process, and we recognize value, elsewhere.

This is the moment.

Do we interrupt our process to take the time?

It’s an extra effort.

Interruptions are annoying.

Going the extra mile will lead to a fuller life-experience from the near future onwards.

That’s what extra added value does.

The most difficult part is to slow down, and smell the roses on the way.

We’re always caught up in trajectories.

Small deviations cause us discomfort.

Why have we forgotten (?) that more than being a collection of results,…

…life is better remembered for its journeys and how each path unfolded.

The fun we had on the way.

Or did we forget to have fun on the way?

Let’s not let it come to that.

Here’s to enjoying each journey, taking in the view on the way, adding offered value, and only then looking towards reporting the home-runs scored.

🙂

SystemPower

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Life moves…

…from system to system.

We add value…

…at every step.

One breathes easy after setting a system on auto.

While setting the system on auto, it’s the process that drives us (Neo).

Process gives quality to life. Enjoyment emanates.

It’s this enjoyment that we carry forward. Rest, all of it, stays behind. This enjoyment, and the memory of it, is our earning that lasts, eons.

Systems can be applied to all walks of wife.

Deciding not to have a system in an aspect of life…

…is also a system.

Why?

You decide to…

…not do something…

…if a particular situation arises.

Keyword is…

…’decide’.

The more important questions here are…

…whether you have stuck to your system?

Did you refrain from acting?

Did sticking to process evolve you?

Were you thrown out of your comfort zone?

Did you enjoy getting tossed around?

Sometimes we do. It teaches and equips us for bigger game. We enjoy exploits in the bigger game after having learnt from the turmoil in the smaller game.

Whatever cooks your recipe.

Permute…

…combine…

…and devise…

…the optimal chronology for yourself.

Yeah, optimize the system…

…and don’t stop optimizing…

till you’re ready to leave such system on auto.

Wonderful.

You now have so much confidence in your newly fully optimized system, that you actually leave it functioning on auto, and move on to use your life to keep adding further value.

Eventually, life becomes an ensemble of powerful systems.

Remember, some of these are no action systems too, so you’ve got that base covered, yeah, this line was for the critics 🙂

Occasionally, systems malfunction.

Then, we fine-tune.

Or, we discard, and create anew.

The power at your disposal when a system functions successfully, on full and on auto, is immense.

Imagine a life with multiple successful systems functioning on full, and on auto.

Apart from all the pluses that emerge in such a life, there’s something I wish to focus on.

Systems on auto means spare time after achievement.

Using this time to do something even more meaningful is what attracts me.

Eventually, all the value addition starts to benefit not only you but also the people in your environment, your city, your country, and…

…the entire world.

🙂

Creating Cost-Free-Ness as a matter of habit

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Upon its creation,…

…cost-free-ness…

…can be put to use…

anywhere.

Expensive stuff?

Not able to catch it?

Eluded you…

…because…

…was too hot…

…to handle..?

And…

… you really, really want it?

Not a problem anymore.

Buy it with your cost-free-ness.

I know, that defies all the rules of margin of safety et al, right?

I mean, do you care?

I don’t.

Why?

What’s stopping me from going out there and creating some more cost-free-ness?

Nothing.

In fact, that’s all I’ll be doing, day in, day out.

There’s a small hitch though, during the creation of the next batch of cost-free-ness.

The just previously created cost-free-ness comes in the way by short-circuiting one’s thought process.

Get it out of sight.

Pickle it.

How?

Pick what you like.

Buying with one’s cost-free-ness that which one isn’t able to otherwise…

…is totally ok, …

…in my opinion.

You pick…

…what you like…

…and nobody’s going to question you.

It’s your cost-free-ness, and you can use it as you please.

Pick…

…buy…

…transfer…

…out of sight…

…forget…

…and then…

…focus…

…on creating…

…the next batch of cost-free-ness.

Eat-sleep-repeat…anyways.

Create-pickle-create more…

…cost-free-ness…

…always…

…as a matter of habit.

Period.

From Cost-Free-Ness to a Unified, Singular, Comprehensive, 360° Market-Field-Strategy

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So you’re cost-free in the markets…

…and are contemplating your further market-journey ahead.

Yeah, now what?

First-up, let’s grab a hold of what you have in your hands.

You are holding high-quality material which fits your risk- and long-term holding-profile, and, most importantly, this material has now been freed up of its investment-cost.

That’s (very) huge!

So, how does it go from here?

I’ve been here, and have always bungled it up.

This time, I won’t.

Why?

I’ve finally realized the supreme importance of being at this point, and, …

… I wish to keep coming back to this sweet-spot, …

… again, and again and again.

It’s a wonderful feeling.

One feels deep satisfaction, of achieving something big.

Yeah, at Magic Bull, we sheer achieve, write about it, and then achieve more.

We’ll just go on achieving.

We’re not stopping.

The writing part is only to keep a log and to help others on the path.

And of course, it clears one’s thoughts, making one arrive at gems of strategies…

…which all converge and unify into a singular market-approach.

Let’s talk about singular.

At this sweet-spot, the ghost of trading arrives.

One feels like riding the highs by video-gaming through the markets.

And, one falls flat.

It’s not familiar territory, because the approach till now has been one of investing, and investing and trading are diametrically opposite in nature. Meaning that it takes some time to rewire.

Before rewiring properly, …

… one’s already pressing buttons as if buttons are soon going to become extinct, since one is seeking thrills. It’s normal.

One’s achievement-vector points only towards falling flat, such is one’s behaviour.

How do we conquer this pitfall?

We’re going to exhaust this ghost’s potential to our benefit.

We are going to trade, …

… because otherwise, ghost’s not going away.

However, we are going to trade only those scrips that are already inhabiting our cost-free portfolio.

We trade these, as new units, in a different trading account.

Entry is worth one small quantum, whatever small entry-quantum one has defined for oneself.

The objective is to ride a quick run, and make, let’s say, 20% of the traded units cost-free.

That’s would be good, hard, tangible bang for our trading bucks.

Assuming we succeed, we then transfer the cost-free units to our long-term portfolio.

In the event we fail because markets start to reverse, it’s still ok.

It’s a holding we are comfortable holding, into the next market cycle, where we’ll again try and make it cost-free, and we’ll then have cost-averaging on our side, since we’ll have reversed to an investing approach.

It’s win-win everywhere.

Failure comes eventually, because markets ultimately reverse.

No one knows when.

Till them we keep trading and increasing our cost-free-ness.

When failure comes, it’s once, and eventually we hold and try to turn it around.

Because we’re holding quality, the probability of turning the situation around is high.

Before this one failure, we are poised for many possible trading wins, with each win adding to our cost-free-ness.

And there we have it…

…voilà…

… , yes, it’s a unified, singular, comprehensive, 360° Market-field-strategy…

…courtesy your friend and comrade-in-investing. …

… Magic Bull !

🙂

Breaking Free

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[ “I want to break free
I want to break free
I want to break free from your lies
You’re so self satisfied I don’t need you
I’ve got to break free
God knows, God knows I want to break free… ” – Queen].

How does one stay invested in the markets…

…despite all its deceptions and mind-games?

As indices creep up and up, our minds start playing tricks on us.

We seek excuses to cash out.

And, mostly, we…

…cash out.

Done?

NO.

We don’t want to be done.

Why?

There might come a day, when we wish we hadn’t cashed out.

Markets can stay overbought for ages.

Or not.

We don’t know.

No one knows.

Appreciation that counts sets in upon staying invested for the long-term.

How does one resolve this…

…conflict of mind versus reality?

One…

…breaks free.

Meaning?

Free up whatever has gone in.

Meaning?

Cash out the principal.

Leave the profit in the market.

This profit has cost no money.

Leaving it on the table is not a biggie.

Or is it?

It is…

…for most.

Those, for whom it isn’t, will benefit properly from compounding.

Now, what’s the danger?

No danger.

What’s on the table hasn’t cost you, so no danger.

Still, what would one fear?

No fear. What’s in is free, so no fear.

Let me paraphrase.

What’s the worst-case scenario from here?

Well, U-turn, and a big-time correction.

So what?

Use the correction to buy low, with the idea of freeing up more and more underlying(s) upon the high.

This way, size of one’s freed-up corpus keeps growing, and so does one’s exposure to compounding.

Wishing all very lucrative investing! 🙂

Auto is our Motto

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What are you doing…

…that’s not on auto?

Next question is, why is it not on auto?

On purpose?

Sure, there’s some stuff that you’d like to reserve for manual. That’s absolutely fine. 

Not on purpose?

Meaning you want it to be on auto, but haven’t done so?

Right. 

Why not?

Meaning, why are you not using that one big benefit of the twenty-first century – to your benefit?

Lazy?

Couldn’t care less?

Too complicated?

In a rut?

Whatever. 

Bottomline is, you’re losing out. 

How?

You’re losing out on…

…time…

…growth…

…evolution…

…prosperity…

…sense of fulfilment…

…sense of purpose…

…and what have you.

You can also start figuring out for yourself how you are losing out on these things amongst other stuff. No spoon-feeding here. 

Automation is the minimal requirement of our times. 

Automation requires transcending an activation barrier. 

This is a one-time input, before the concerned process goes on auto. 

This is also the step which makes many lose interest in going auto. 

Well, from nothing comes nothing. 

You will have to put in that time and energy for the one-time input that pushes the process into auto-mode. 

There is no way around it. 

However, each time you’ve gone auto, you’ll get a huge sense of accomplishment. 

You’ll want to recreate that feeling again and again and again. 

You’ll want to put more and more stuff on auto. 

With so much of auto stuff adding to you from the background, your life will become fuller. More enjoyable. More time to pursue whatever you wish to pursue. More time to be…

…you.

Cheers. 

Small Shoots to Big Trees

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What do I see around myself?

Lots of small shoots. 

Wherever I look, there are small shoots. 

Does this make me happy?

You bet. 

Why?

Why not?

I mean, you don’t see any trees. 

So?

You’ve been at it for a while.

So?

All you’re seeing is shoots. Does that satisfy you? None of your efforts is a big tree in all this while.

That’s a very narrow-minded, greedy and fast-buck remark. 

Explain. 

For each of the shoots I see around me, twenty efforts have died their death. However, one shoot managed to entrench itself. This one shoot is firm, and goes very deep into the ground. It’s roots have become very strong. It is now ready for the world and has decided to show itself over the ground.  Over the next many, many years, with my meticulous nurturing, this very shoot shall grow up into a mammoth tree with unprecedented positive consequences.

I see. And, you’re saying that you see many such shoots around yourself?

Yes, many many.

Wow.

Yeah, i’ve been busy. I’ve tried and discarded many things. What remained didn’t want to leave me. It got planted and grew roots. Now that the shoots are growing, they are mostly on auto-pilot. Some need tending to once a day, some once a week.

Does that give you empty spaces in between?

Yes.

How do you fill these empty spaces?

I do, and I don’t.

Meaning?

Unless something new refuses to leave me, I don’t wish to plant another tree.

Why?

I’m happy enough tending to what I have.

So you’ve reached the…what’s that called?

Sweet spot?

Yes, you’ve reached the sweet spot. But nobody knows about you. You’re not famous or anything.

That’s why the spot is sweet.

Meaning?

Nobody disturbs my privacy. I can go where I choose. Do what I want. I don’t need to share my time with anyone if I don’t want to. There are no compulsions imposed upon me. 

Do you think you will be famous one day?

When these shoots grow into big trees, that might happen.

Do you want it to happen?

I want my trees to grow. Not sure today about fame. It kills personal life. I like my life and its pace.

Any regrets?

Sometimes, I get lonely. It’s the nature of the path. Despite family and a decent social life, loneliness is still there. Applied finance requires a lot of alone-time. 

How do you deal with that?

I start tending to a different shoot. Financial. Non-financial. Recreational. Creative. Gap gets bridged, and then the loneliness is gone. 

Scaling Up

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When you find a system… 

… that works… 

… what’s the next step? 

Plunge? 

Wait. 

Look left and right. 

Meaning? 

Look at your basics. 

Are they in place? 

Meaning? 

No worries about food on the table? 

No worries about kids’ education funds?

Basic family luxuries in place? 

No? 

Get these together and going. 

Yes. 

Ok. 

Go for it. 

Scale up. 

Your decision to scale up should at no time endanger your basics. 

You’re scaling up from  your extras.

You’re scaling up with stops in place. 

If your stops are hit, you’ll change your system till it works again. 

You will not borrow from your basics. 

You will wait for your extras to accumulate, and divert these into scaling up. 

Having gotten all that out of the way, let’s cast a glance at the concrete process. 

1x is working, or so you say. 

In fact, you’re sure 1x is working. 

Ok. 

Now do 2x.

Working? 

5x.

Can you take it? 

Do you sleep well at night? 

Fine. 

10x.

Working? 

Family life intact? 

Basics intact?

Fine. You take it from here. 

Where do you plateau? 

Right before a level where something might get disturbed. 

It’s really that simple. 

Happy scaling up! 

🙂 

Wealth-Generators know how to Sit

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Most humans don’t know how to sit. 

Most humans are not wealthy. 

If you are a wealth-generator, you’ve probably already made the connection, knowingly or unknowingly. 

You sit. 

You are focused.

You know what you are doing. 

You are confident about what you are doing. 

You don’t keep looking over your shoulder. 

You are not jumpy. 

You don’t require a daily quote. 

In fact, you’re quite happy with a monthly quote. 

You know the value of your underlying. The world cannot tell you otherwise. 

You seal one wealth-generating opportunity, and move on to the other. 

That helps you to sit on the former, while you focus on the latter…

…till you seal the latter, which is when you move on to the next one, and so on and so forth. 

Soon, you are at the pivot of many, many wealth generating ideas. 

You are surrounded by multiples. 

Some have fully matured. 

You bring them to their logical conclusion. If this is a cash-out, well it’s a cash-out. 

You move the funds resulting appropriately…

…perhaps to a new avenue…

…or perhaps to finance something big…

…be it a lifetime-requirement…

…or what have you. 

You recognise the fact that one of the main purposes of wealth is also to fulfil lifetime-requirements. 

Mere income is not able to fulfil these. 

Generated wealth is. 

You recognise that. 

You are a wealth-generator. 

You know how to sit.