Tag Archives: #PositiveLoop

Winning the Hand with 2/7

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For the first time in life…

…being fully invested…

…seems a better idea.

Dangerous?

Sure.

Can halve in no time.

That’s something we carry with ourselves into the markets.

If we are afraid of something halving, we should look at other pastures.

Why aren’t we afraid of our investments halving fast?

Ever heard of upside?

Well, what is it?

The upside. How much?

Any limits?

In a growth market?

Potential future high-growth market?

Can’t give a number. Except that, over the long term, upside is perhaps nx, with n being a big number.

That’s enough reason to be fully invested.

Full benefit of upticks.

Big uptick days, perhaps 80% of them, are closely embedded with big downtick days.

Reason to stay invested all the time.

Expenses?

Sell the worst weed standing. Spend the proceeds on expenses. The biggest loser finances expenses.

Income?

Top up the winners.

Why?

Why not the losers?

This is a shift in Magic Bull thinking.

Winners have the longest runway before potentially becoming the worst weed standing.

In that long runway, they can double, treble, n-ble. Runway then becomes ultralong.

That’s why add to the winners.

Worst weed standing pivot philosophy allows winners much time to become even bigger winners, adding to the positive loop.

What about the negative loop?

Winner stops performing.

Down.

Down.

Down.

5 notches away from being the worst weed standing.

4 notches.

3.

Starts performing.

Up.

Up.

Up.

Above buying average.

Adding to.

2 bagger.

4 bagger.

Huge runway again.

10 bagger.

Adding to, runway is phenomenal.

100 bagger.

Kachinnnnng.

Some other winner stops winning.

Below buying average.

Down.

Down.

Down.

3 notches to worst weed standing (WWS).

2.

1.

WWS status.

Expense comes up.

Out.

That’s the exit route.

One route to expunge.

The entire philosophy pivots on WWS exit status – on the small trapdoor portal provided for cleaning up the portfolio.

Emotion?

No emotion.

With regard to exit, market dictates what to do.

We just elevated the status of the biggest loser to house-cleaner-in-chief.

That’s turning our biggest loser into a winning strategy pivot.

That’s like winning the hand in Texas Hold’em with a 2/7.

MainStreaming

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When the trickle…

…becomes a flow…

…becomes a water-fall, …

…you’ve just gone main-stream.

Life main-stream is not different as such, …

…except for more zeros behind a one.

One more thing is very prominent, though.

NOISE.

Yeah, noise just got that much louder.

Why?

Because…

…there’s your main-stream, …

…and ever other professional concept or suggestion, …

…is noise, …

…for you.

If that’s not your reality, you’re going to bungle up your main-stream.

At this stage, mistakes are costly.

Going back to a drawing-board is going to cost precious time.

By the time you’ve gotten to your main-stream, time is not a luxury.

Make your scaling up worth it by believing in your main-stream.

Keep fine-tuning it to make it work for you, to its logical conclusion.

That would be the legacy stage.

Once you’re passing on your legacy, all else becomes noise, since closing a positive loop with deep satisfaction is what we ultimately strive for.

Cost-Free-Ness

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Why…
 
…do we play this game?
 
I play it to…
 
…win.
 
What’s one’s definition of a win?
 
It’s different for everyone.
 
I’ll tell you mine.
 
I want to be completely cost-free in the markets before the end of a bull-run. 
 
What does being cost-free mean?
 
It means that whatever one has in the market, has been completely freed up of its principal. 
 
That’s done by taking the principal out, over time, as markets climb. 
 
What purpose does cost-free-ness serve? 
 
Firstly, whatever’s in the market now, in a cost-free state, is all high quality material. 
 
It can’t be otherwise. 
 
What’s not high quality will be pulled out as markets persist in their climb. 
 
Why?
 
The impulse to book is very strong. 
 
In that state of mind, whatever is not worth holding anymore, will be automatically booked. 
 
It’s human nature. 
 
Secondly, what’s in the market now, can stay in, like, forever, without causing us any tension. 
 
That’s an ideal state of mind for the creation of multibaggers, and the underlyings in question are all multibagger material, being the essence of one’s entire market-play. 
 
Thirdly, one has gotten one’s soldiers home, to fight more battles, as valiantly as ever, in the times to come. 
 
Ya, cost-free-ness means that one has pulled one’s principal out. 
 
This very principal will now be utilized to make more and more shares cost-free.
 
Fourthly, we are not going to suffer any pangs about the markets climbing and climbing further. 
 
Further climb benefits our material in the market, immediately. 
 
More material, picked up at trading levels, is likely to yield a small chunk of cost-free shares, in the form of a winning trade. As one exits such trade, one leaves one’s profit in the market, in the form of cost-free shares. 
 
Sure, eventually the market will collapse, and we’ll be left with some material which is not only not cost-free, but is now losing, perhaps big.
 
That’s ok.
 
Why?
 
Because, quantities are relatively small. These are trading levels, remember? Thus, entries will be small.
 
Then, these are the same underlyings as already existing in our portfolio. 
 
We want to hold these. 
 
We are holding many cost-free units of these very underlyings. 
 
Current loss-making units of these underlyings can be averaged as markets sink further, because we are highly convinced about these holdings.
 
Eventually, the curve will turn, and a new cycle will start.
 
As markets climb in the new cycle, eventually these new units will start becoming cost-free.
 
Such positive loop outlined above is the market sweet-spot I always wish to be in.
 
It’s the essence of almost seventeen years of first-hand, in-the-field market learning, with personal funds on the line at all times, struggles, losses, beatings, the works and what have you. 
 
And now, there’s cost-free-ness.
 
That’s my win in the markets!
 
🙂