Tag Archives: #Fundamentals

A Chronology of Independent Action

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The ideology…

…of a fear-monger..

…is to transform you into a weak hand.

Is that…

…fair…

…to you?

N.O.

But, that’s the whole idea. By hook, or by crook, you should feel the need to let go of your underlying.

Why?

Because greedy whales are waiting to swallow your very underlying up, easily, and cheap.

How has the ‘easily’ been achieved?

Big order comes into the market.

Meanwhile, fear-mongering has been at a peak. Social M has been puking it out like a volcano. Masses, already jittery, are doom-scrolling their way into submission.

Big order gets filled easily, without moving price much.

Move to next round. Get the scrip down another 10%. Launch another negative campaign. Tie in with an actual event showing weakness of the scrip or sector. Punish the scrip eight times, for the same reason, the one time that actual weakness in the scrip prevails, for that particular reason.

This is now standard.

Are you drowning in it?

Are you using your common sense?

Sheer…

…fundamentals.

Numbers.

Read.

Study.

Dig out.

Follow your research.

If at all, use the media to see in which direction it is leading.

What do the whales want to do?

What do they want you to do?

What are you going to do? Push counter to the wishes of the whales, right?

Right.

Stand your ground.

Do not sell out of fear.

There needs to be a numerical or a situational reason to sell. Fear should not be the reason. Fear needs to be taken out of the equation before scaling up. There are ways to do this. One needs to create an ensemble of circumstances, around oneself, that then take fear out of the equation. We have delved into this repeatedly in the past, and shall discuss the topic again, soon.

Buy into conviction.

Hell with what the bellowers are saying.

Look at your research, and look at the market. Nobody else exists. Get into a zone of tranquility and rhythm. Once your conviction fires, it fades all noise, like sunlight annihilating darkness.

So.

Research.

Market.

Match.

Fire.

That’s it.

Action.

Signposts

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Noise, …

… currently, …

… is deafening.

Posturing, …

… rebuttal, …

… a coup nearby, …

… printing, …

… and what have you, …

… have now become par for the course.

What are the signposts we follow, amidst this chaos?

First up, let’s not be afraid of chaos. Big returns are made exactly there.

We are going to follow high-growth, …

… and specifically, value offered in a high-growth market. Ya, we’ll never get away from margin of safety. It keeps coming back, in one form or another, whether one is investing, or even trading. We use it to get a little better value while entering, facilitated by Technicals. We understand that it’s in volatile times and markets that growth offers value, very temporarily.

Needless to say, basic Fundamentals need to be intact, on the path that we tread.

The governments, and managements we invest in need to show integrity, and develop trust.

We remind ourselves, that high growth is a non-linear entity, and thus we need to stay invested.

We achieve this by keeping our Cost-Free-Ness in the market, like, forever.

We toil to create more and more Cost-Free-Ness.

What this exactly is has been explained ad nauseam in this space, at many earlier instances.

Creation of Cost-Free-Ness means that our principal goes to work repeatedly. Its mini-units are like soldiers that go into battle, bring back winnings, and then they rest, to be deployed another day. If some deployed principal is losing, we wait for it to win. If losses mount, we always have the option to bail it out, or to switch its battle.

The beauty about Cost-Free-Ness is, that since it remains in the field, like, forever, there then is no cap on its upside, in a high-growth market.

Wishing you happy and lucrative wealth-creation!

🙂

Nath on Trading – IV – We’ve got Stamina

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61). We’re able to take many, many small losses, without flinching.

62). Only that sets us up for the big wins.

63). We don’t second guess our stops.

64). In fact, we want the stop to hit. As in, hit me, if you’ve got the *****.

65). When the trade moves in our direction, we let it. We’re doing other stuff.

66). When the trade moves against us, we let it. We’re doing other stuff.

67). That’s because we fully understand the function of our stop. It will take us out of the market, whether in loss or in profit. It’s dynamic, you see. It moves with the market as per the definition provided by us while punching in the trade.

68). We’re not afraid that our stop could be jumped. Can happen, in a panic. Hopefully, our technicals will have placed us in the right trade direction before huge and fast moves. It comes to mind that this kind of move occured at least twice in the last six years, once with the swiss franc, and once during Brexit. If we start worrying about such one-offs, we won’t trade at all. 

69). We look at the technicals, and we listen to what they’re saying. The trend is our friend. We trade with the trend, either on fresh highs (fresh lows) or on pullbacks, depending upon the conditions.

70). This is trading, so I personally don’t look at fundamentals. However, cook your curry the way you like it.

71). We might zero into tradable underlyings with screens or searches, but…

72). …we eyeball into final trade selection.

73). Yes, the chart needs to look and feel just right. All but the one tradable entity are rejected by the look and feel of the chart. The one remaining is the one we trade. If none remains, we don’t trade. 

74). Price is king. We’re into price action.

75). Indicators only indicate. Price does the talking.

76). What the price is saying will reflect in the indicator, but with a time-lag.

77). Do we want this time-lag? I don’t.

78). Thus, price action it is, for me. However, everyone is looking at the same price.

79). Therefore, we need to think slightly out of the box, to make money.

80). Edge + out of the box thinking + stamina nails it.