Going for the Multiple 

Relax. 

We’re not going for the jugular. 

Or are we? 

The jugular has the most copious flow. 

Maybe we are then… 

… going for the jugular. 

However, there’s no stabbing happening. 

We do everything from the inside of our comfort-zone.

We act with harmony. 

Balance. 

Focus. 

Intelligence. 

Common-sense. 

We try and be non-violent about it. 

What are we doing? 

We’re looking to create wealth. 

What makes us look? 

Security. Our basic income secures us. 

Boredom. Adding to our basic income has become boring. 

Overflow. As basic income starts to overflow, it needs a long-term avenue in which it doesn’t demand our constant attention. 

Fine. 

What’s the best way… 

… to go about it?

Where there’s honey, there are bees. 

Finance-people find you. You have money. They have investments. For finance-people, you are bread and butter. 

So, you sit. 

You wait. 

You let them come. 

You’ve got discriminatory-ability. 

You sift. 99% of what comes goes into the bin. 

You like 1%. 

You invest in that 1%.

How much? 

Whatever you pre-define as your per-annum outflow into wealth-creation. 

Only that much. 

What then? 

What’s the bottom-line? 

What’s your holding strategy? 

Nothing. 

You sit. 

The biggest money is made…

…while sitting.”

You’re not even looking at your long-term investment more than once a month. 

You’re not interested in daily quotes.

The daily quote can say zero. You don’t care. You know that you are in the process of creating wealth, and that it’s going to take long, and within that period you don’t care if the world thinks your holding is zero, because you know it isn’t. 

Why? 

Due-diligence. 

Ability to think differently. 

Ability to see wealth in its nascent stage, and to recognize it. 

You have these things. 

They didn’t come for free. 

You took some solid hits to earn them. 

Yeah, you have what it takes, and that’s why… 

… you’re going for the multiple. 

MP vs MoS : the lowdown on Trade-Entry

Margin of Safety (MoS)… 

… hmmm… 

… wasn’t that in investing? 

Well – surprise – it’s in trading too. 

You can enter a trade with MoS. 

How? 

Ok.

ID the trend. 

Wait for a minor reversal.

Let the reversal continue towards a pivot, or a support or a what have you. 

During this reversal, whenever you feel that you have considerable MoS, well – enter. 

Why shouldn’t you wait for the pivot to get touched? 

Things happen real fast at a pivot. Upon a pivot-touch, you can lose your comfort-zone even within minutes. 

Two vital things can happen at a pivot. 

Either there’s a quick bounce-back, or the pivot gets broken. 

Bounce-back means your trade is now in the money, and that you can go about managing your trade as per your trade-management rules. Wonderful. 

Pivot-break is not a worry for you. 

Why? 

Because you’ve placed your stop slightly below pivot, after the noise. 

Upon pivot-break, you get stopped out. You take the small hit and move on to your next trade. 

Eventually, things heat up. 

There is movement. 

Tops get taken out. 

Fast money can be made. 

How do you enter here? (Needless to say, for shorts, everything is to be understood reversed). 

Momentum play (MP)… 

… is the weapon of choice. 

You set up a trigger entry after a top or a resistance or a what have you, and wait for price to pierce, and for your entry to get triggered. Then you place your stop, below top or resistance or what have you. 

MP vs MoS is a matter of style. 

If you’re not comfortable changing your trading style to adapt to times, that’s fine too. Stick to one style.

If you’re conservative, stick to MoS. 

In a frenzy, however, MoS might almost never happen. 

In a frenzy, entry will be triggered exclusively through MP.

Take your pick. Adapt. Do both. Or don’t. Do one.

You call the shots. 

This is about you.

Excelling in Non-Conducive Environments

People are born to excel in conducive environments. 

It’s no great shakes. 

With an appropriate environment around you, you move and shake…

…the world. 

Fine. 

Where’s the growth?

You’re doing something that comes naturally to you, something you’re good at. 

Frankly, there’s not much growth here. 

Sure, your environment grows. 

Whether you grow in the process or not…that’s the question. 

You definitely grow more in a scenario, where you’re thrown into a non-conducive environment. 

Try excelling there. 

Ha!

See!

Let’s see you excel there, let’s see if you’ve got what it takes.

Why’s is this important?

Toughen up, people. 

Lose your comfort-zones. Come out into the open. Do something extraordinary. Excel in non-conducive environments. 

Where’s the fun? That’s what you’re asking, right? Fine. Good question. 

You can always have your fun. 

It takes nothing for you to walk into a conducive environment and start excelling. 

You can always do this. 

For example, if you’re a born teacher, you can always hook up with an institution and commence some classes. Or, if you like languages, you can just enrol with some institute and start learning a foreign language. 

That’s always there. Your backup. For when you’re down. But, right now, what are you doing right now? When you’re world’s A1, how are you then reacting to your good fortune? Are you toughening up? Are you looking around for non-conducive environments to excel in?

It’s difficult to lift yourself up and motivate yourself when you’re looking like a fool and feeling out of place. That’s just it. The act of lifting and motivating yourself – the sheer strength of body, mind and character required – will make you grow immensely. 

Why growth?

What’s so important about growth?

It’s your strength backup account. You can draw on it. It works in a non-linear and metaphysical fashion. It can lend you energy by sheer thought transfer, just by remembering something strong and gutsy you might have done before, in a difficult situation, in a non-conducive environment. 

Build up this account in your spare time. This is one account you’ll actually take with you when you leave the body. This account is real wealth. Its remnants get stamped onto your soul. Build it. Build it more than you build up your physical wealth account. That’s the one you’ll be leaving behind, for your kin to blow, if you’ve not sorted your affairs out properly. 

What are typical examples of non-conducive environments?

Being trapped in a difficult marriage, and having a child or children from the marriage. Leaving the environment is heavy on the kids. Some battle it out for the sake of the kids. They try to make the best of a non-conducive environment for the sake of someone they love, someone who looks up to them. 

Working in an environment for which one is not cut out. Happens. It’s a destiny-play. One glides into it without being able to help it. One can walk out, sure, but not without affecting the lives of many, adversely. Many remain. They battle it out in a non-conducive environment. They grow from within. 

Being trapped in a difficult friendship. Walking out could hurt the other irreparably. Some remain, for as long as it takes. They take some hits in the bargain, but they also grow. 

Being a second-rate citizen in a foreigner-unfriendly country. Tough. Has some advantages, though. Career, wealth-building, systems, language, good education and prospects for children, internal growth…amidst humiliation, sometimes back-breaking work, lack of recognition etc. Many battle it out, keeping the larger picture in mind. Many have no other choice. All grow. 

These are just some examples. 

I’m sure you can add to this list by looking at your own life. 

Don’t be sad. 

It’s ok. 

It’s ok to grow. 

Even if the environment is non-conducive. 

Take it in your stride. 

Conducive breathers will come.