Flexibility?

Sure…,

…one should be flexible in life.

What about in the markets?

Is this an asset in the markets?

Well…,

…yes and no.

Make a system.

Be flexible whilst putting it together.

Fine.

Narrow down the broader view during this exercise.

As narrowing down progresses, flexibility reduces.

Keep this process going…

…till it’s a fit.

Fit?

Yes, fit between the implementer and the system.

Both need to fit.

Once there is a fit, there’s no room for flexibility.

It’s a fit folks, one is not talking in terms of flexibility anymore.

The need for flexibility has been taken out, by fitting, fitting, fitting…,

…till it’s a fit.

Now one actually needs to behave as if one’s created system is a black box.

Launch the system.

Period.

System will clock some hits.

There will be some near misses too.

As long as results are satisfactory, system keeps rolling.

Under no circumstances is there any requirement to accommodate the near misses into the system, as of now, please.

One does feel one’s system is satisfactory, right?

Right.

Keep implementing.

No?

Cancel black box status.

Commence fitting.

Come up with a new system…

…that works better under existing circumstances…

…and keep it rolling till it works.

Meaning

Situations…

…arise.

Do I accept…

…my situation…

…or don’t I?

Unless something fits, I don’t deem it a fit.

Fighting…

…till the environment moulds…

…and fits…

…has been a normal response…

…for me.

Using this response, majority of circumstances are made to fit, and then one moves on to the next set.

However,…

…some situations refuse to mould.

These are the big ones.

They don’t go away.

They don’t change.

Hmmmm.

Most of these, I still don’t accept.

Plan B.

I fit.

These two words are not just two words.

There are worlds underneath.

How does one make oneself fit?

Change.

Behaviour.

Habits.

Body.

Mind.

DNA.

Changes that then incorporate into one’s reflexes, and, finally, into one’s long-term memory.

Takes a lot.

Mental checks.

Tolerance.

Control over speech.

Throwing temper into bin.

Exercise. Build-up to high-intensity. Need to generate human growth hormone (HGH). Its presence expedites what I wish to achieve.

Fasting. At times. At least IF. More HGH.

Cold showers. Even more HGH.

Deep sleep. If possible. Providing fast avenue for change to get incorporated at biochemical level.

Four months.

There’s visible change.

Six months.

It’s a fit.

I…

…have…

…fit(ted).

Feels good.

It’s a huge win.

Accomplishment unleashes a different set of hormones. These supply a feeling of fulfilment.

That’s not all.

There are one or two other situations in life, which belong to a different category.

They don’t fit.

Also, one doesn’t wish to fit.

They don’t go away either.

And, they don’t change.

Where does one stand, then?

These are the biggest ones.

These were sent to keep poking you.

Till the end.

What do I do with these?

Accept the category in play?

Have to, eventually.

Try everything pertaining to the prior two categories?

Of course. How else would I know?

When the category stands, and nothing works, there still remains a question.

Do I accept my situation?

I…

…don’t,…

…as this situation stands.

I…

…do,…

…with a twist.

Meaning.

Looking for meaning.

Mostly takes damn long to find meaning. Years. Decades? Can.

If am not able to find meaning, that’ll be the status till the end. One dies finding meaning, with regard to the particular situation.

If I do, that meaning is the twist.

Every time there’s a poke, I’ll think of the meaning.

With regard to the situation, one dies while acting upon the meaning.

And…

…why?

Why do they come, such ones?

Accelerated, enhanced, bumper growth?

It doesn’t happen without these.

Normal

Hey…

… how’ve you been?

Just hit my normal, so, am feeling good about it.

LifeVector took a multi-SD shock some months back, and everything that makes my normal went out of whack.

Life today is about finding one’s normal amidst constant and new shocks.

Didn’t know I had it in me, to take a multi.

Found out while it happened and in the aftermath.

It’s good news for one’s environment, since everyone remains protected, if one is confident about navigating through multis.

So, what makes up my normal?

Firstly, I don’t fit.

So I construct my own fit.

Takes two and a half decades.

My fit has many-dimensional functionality, tailor made, to extract fullness from life.

In no defining order, there are some income-creating avenues.

Wealth-creating ones.

Recreation.

Giving.

Movement.

Study.

Wellness.

Spirit.

Family.

Exploration.

Responsibility.

Evolution.

Systems.

Auto-pilot.

Am not necessarily passing every avenue. There’s failure too.

I do know one big thing, though, from the recent shock.

It’s an invaluable lesson.

Don’t mind sharing it with you.

Am unhappy when away from my normal.

Further away, more the unhappiness.

Happiest when normal is hit.

Happiness-peak continues as normal remains intact.

Hmmmm.

Isn’t that a big learning?

Hope it helps you too!

🙂

Specialization

What…

…is working for you?

Do you know?

Have you singled out…

…what gives you profit?

Many things?

What gives more?

Two things?

Which of these is more enjoyable?

Single it out.

What fits best?

Time-line fit.

Mental fit.

Physical fit.

Family fit.

Attitude fit.

Approach fit.

Profitable.

That’s what you are doing…

…from the moment you identify…

this supreme fit.

No one is stopping you from trying other stuff too.

Sure.

We’ve come here to do, and why not do maximum, right?

Sure.

Maximize on your life’s activity.

For profit, however, tread on that one path, which…

…fits supremely.

Specialists…

…score maximum…

…in their area of specialization.

One might argue that what if?

Ya, what if something turns in the area where one’s maximally into?

One’s saved up in the good years, right?

That will bridge the gap.

See what’s wrong and fix it.

Come back in, slowly.

Find rhythm.

Accelerate when comfortable.

A series of procedural and systematic steps, followed correctly…

…eventually leads an expert to a peak.

When you’re peaking, here’s wishing…

—that you never look back!

🙂

A Little Bit of Manual is a Good Thing

Sure.

Auto is the motto.

Keep some pivotal stuff on manual, though.

It’ll give you something to do.

Because it’s pivotal stuff, it decides direction, or quantum, or what have you.

Position-sizing is ideally done on auto.

You can write an algorithm for it too.

Yeah.

You can take auto to the nth level and then some.

Keeping position-sizing on manual, though, for example, makes you remain in touch with portfolio expansion or contraction. Central.

In my opinion, setting risk:reward is a trade to trade thing, and depends upon the underlying chart. Hence, being manual here gives more dexterity.

Same goes for setting stop-losses.

Which auto strategy to look at, when, is by default a manual thing. It should be, anyways, in my opinion.

This adds spontaneity to life.

Spontaneity has a certain freshness to it which makes work fun.

Some strategies are better off when not looked at for days.

Manual helps here.

When an auto strategy stops working, one needs to manually fit it to work again.

If the strategy needs dumping, you’ll need to see to this yourself.

Creation of a new strategy – you got it – manual.

The manual stuff keeps you moving, and fit.

The auto stuff just goes on auto, and if that’s all there is for you, you’re going to start getting lazy.

Befriend manual, but don’t become a slave to manual.

A little bit of manual is a good thing.

Useless vs Useful Expansion

I’m guilty of useless expansion. 

I end up doing it all the time. 

Can’t help myself, you see.

I like to keep exploring new stuff in the market. 

The silver lining is, the even though I might be expanding sideways, there are two good things happening also. 

There is no scaling up happening immediately. Good. 

There is also a lot of discarding going on. Things that don’t work out are eventually abandoned. Great. 

My issue is that I might have between 1 to 2 useless strategies in my repertoire at any given time. 

These strategies are not working. In fact they are dying out. Reasons can be many. A strategy might be sound, but it might not be a fit. 

For a strategy to work for you, it must be practically lucrative in the long run, and it must fit you. 

By the time I realize that a strategy needs to be discarded, money has been lost. Tuition fees? Yes. 

Ultimately, things boil down to a handful of successful strategies. It can even ultimately boil down to one or two successful ones.

Get there. I’m trying too. To do so, useless strategies will need to be discarded, like, now. 

The problem is, you don’t know that a strategy is useless till it has hit you a few times. 

Also, you don’t wish to discard something that you think might just work out for you in the long run. 

Fine. Keep grinding, and ultimately narrow down your sideways expansion, till you’re only working with strategies that are yielding, and show a long-term promise of being around. 

Right. 

You’re there. 

Now you can scale up. Doing so using a yielding strategy that fits is called useful expansion. 

Scale up slowly. 

You can position-size, and scale up using profits. This way you are not putting in extra principal. Let the strategy continue to prove itself by yielding. As long as it does so, you keep scaling up on your positions using the newly earned profits. 

Why is useful expansion not easy to maintain?

We get carried away.

We might scale up too fast, and then baulk at a loss when the size of the loss is too difficult to swallow. Large input can result in a largish potential loss.

Trading is about containing loss, and letting profits run. 

Scaling up too fast makes an early loss look big if we haven’t tasted the corresponding potential profits yet. Such an event can even cause us to abandon a successful strategy because we are disheartened. 

Therefore, try not to scale up by putting in new principal, if you can help it. 

Try scaling up on profits alone.

Position-sizing automatically controls the scale-up-scale-down factors by defining the size of a constant stop as a percentage of the principal remaining between trades.

Position-sizing makes one scale-up and scale-down on auto-pilot in a relatively balanced fashion.

Please incorporate this wonderful ideology (which comes from the stable of Dr. Van Tharp) into your trading strategy. 

🙂

Chancing

How does one discover the missing ingredient?

By chancing it. 

One keeps trying different mixes…

…till something hits. 

The hit is then fine-tuned…

…such that it is reproduced again and again.

Once the hit can be reproduced at will, one has got the strategy all together. 

A successful strategy is then let loose. 

At first it is on manual.

Ultimately, it comes on auto, or semi-auto, whatever best is possible. 

There has come and passed a stage, when this same strategy has not been winning. 

Aha. 

What is the difference between the mix of that stage and the current – winning – mix?

It’s some kind of a twist you’ve discovered. 

Something you are adding, or doing differently. 

This something is making the strategy win. 

Congratulations!

You’ve kept trying. 

You’ve been in the field. 

You weren’t away from the field, ruminating. 

You were getting action. 

Losing action, but action. 

Losing action has huge educational value. 

It tells you how not to do it. 

You keep twisting, fitting, tuning, upon loss. 

You chance new stuff.

Eventually, something clicks. 

You develop that something further and take it to the nth. 

Where does that leave you?

You have to keep chancing it. 

There is no way around this. 

Make funds available for the R&D. 

Have the courage. 

Don’t be afraid of a hundred losses. 

Winning is around the corner. 

The Difference between Winning and Losing

It’s a whisker. 

You’re doing everything right. 

You’re following a proven strategy. 

You’ve adapted. 

You’ve removed many mistakes from your resumé.

Your strategy has undergone refinement. 

Why haven’t you started winning yet?

Yeah, we’re used to asking million dollar questions by now. 

In fact, such questions are all we ever ask. 

What do you think is the answer?

The answer is you. 

Yes. 

There’s something about you. 

It’s not fitting. 

You’ve got two options. 

Either make your strategy fit to this something, or …

… make yourself fit to the strategy. 

Both options can work, and you can start winning. 

Which option is easier to implement?

I think the more relevant question here is a different one. 

Which option befits the situation?

I’ll give you an example. 

I’ve got time issues. 

I make my market strategies fit my time issues. 

I can’t change my time issues, for something or someone will fall short then. Like everyone, I have many commitments too. 

Therefore, I fit my market strategy around me. 

I keep fitting, fitting, fitting, till the strategy either works, or is discarded for want of a win. 

Yeah, that’s me. 

Maybe your situation is different. 

Maybe you need to cater to the public. 

You’re not expecting the public to change to your whims and fancies, are you?

Not as a newbie, no no, that would be a cardinal sin. 

After all, the public is your paymaster, right?

Customer is your king, or queen. 

It becomes different when you turn into a celeb. 

Then you can dictate fashion. 

However, till you become a celeb, fit to the public, if you want to win. 

Behave in a manner that people want to pay for what you have to offer, again and again and again.

Maybe there’s a slight whisker of a trait in your behaviour that people don’t like. 

Change it. 

Whether you’re changing yourself, or fitting your strategy to meet your unchangeable nature or schedule, sometimes it’s only a whisker that makes the difference between winning and losing. 

People have lost olympic medals by one-hundredth of a second. 

What’s that millisecond lag in your own life that you need to get rid of?

Fitting

I have this Wills fleece sweat-shirt since ’98.

Love it.

It’s a fit.

Can wear it for anything.

I’m sure you own or do something that just fits.

Very few people in the market understand the value of a fit.

What does a fit feel like?

It comes naturally.

No prompting or pushing.

It’s the essence of your strategy which resonates with you.

A fit holds you and moves you forward.

It makes you money till it continues to fit.

The ideal fit lasts a lifetime.

Nuances.

Everything and everyone has nuances.

A fit happens when nuances are out of the way. They’ve been dealt with in a full and final manner. They appeared, sure enough, got knocked out, which is when they disappeared. What remained was pure you and your fit. The two of you united.

Why is this fit so important?

We’ve spoken about the money angle. A fit makes you money.

There’s the family angle. A fit doesn’t let your market-life harm your family-life. Hence it ensures its own longevity by vitalizing your market-life and also your mental health.

A fit then possesses the versatility to deal with stumbling blocks along the path. Travel? You implement your strategy successfully despite travel. Schedule? Fit works around it. Diet? Fit changes diet, till diet fits.

Don’t underestimate the power of a fit.

🙂