Tag Archives: #SweetSpot

Optimizing

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Action.

Too much action?

Recede.

Too little action?

Still ok.

No action at all.

Sometimes fine.

No action ever, very longish?

What, are we blocking pores now? Not allowing an organism to breathe? Cleanse?

How much to engage with one’s folio?

Burning question.

Correct answer?

It’s different for everyone.

How to find out? What works for you?

By doing.

By trying this.

And that.

By trying it all.

By seeing what gives max comfort level.

Space.

To do everything on one’s agenda, and to still do full justice to one’s stock foray.

How I do it?

Well, it’s been all about self-discovery for me.

I love auto-pilot.

On sweet-spot.

Till sweet-spot, engagement. Perhaps daily.

Once sweet-spot, almost no engagement.

Tools?

Delete the apps.

No quote windows.

No reminders, alerts, or the like.

Burning itch?

Trade.

Another market arena.

I trade options.

Buy side.

Full on technology assisted.

AI.

API.

Algorithmic monitoring.

Almost fully on auto from start to finish.

Positional.

Detached.

I primarily trade for distraction.

Profit is an added bonus.

Loss happens. Is normal.

I trade small.

Then, full curriculum other than markets.

Daily plate is packed with all kinds of engagement.

Enough to forget that the stock market exists. For meaningful phases.

Upside?

Letting the folio be on sweet-spot for as long as possible.

How to know that intervention’s required?

It’s nothing market-related, for me.

On purpose.

A biggish expenditure comes along.

I need to sell one of my worst losers to meet the expense.

Systems on.

Expunge.

Systems off.

Income in?

Systems on.

Adding to one of the top winners.

Systems off.

Top winners keep rotating, since their buying anyway lessens on top-ups.

Fat-head portfolio. A spin on fat-tail winner accumulation.

Happy when systems are off. Life’s got many facets to fathom and enjoy.

Happy when they are on, since I love the engagement angle.

Optimizing to the nth.

🙂

Sweet Spot? Seal it.

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Magic question.

You’ve definitely been asked before.

Many times.

How many stocks are ideal? In a folio.

What’s the answer? The correct one.

I have a different question.

My question is – is this really the correct question?

I have another question.

Why are we even trying to ask this question?

One more.

What allowed us to define…

…the flow…

…of a macro entity called the market…

…as it relates to micro individuals like us?

Right.

Let’s try this other approach.

Which one?

The one where we don’t define.

Where we let the market’s flow and our experience of it decide…

…how many stocks?

How does this play out then, for us, in practical terms?

Entry. Entries. As per criteria.

Wherever criteria are met – entries, thus.

Exit as per WWS (worst weed standing) ideology, please see the last piece written.

Thus exit trapdoor portal is narrow.

Top-up parameters. Define.

So you’ve got entries happening, top-ups too, and a narrow exit path through the WWS route.

That’s all the defining that’s required.

Number of stocks comes into automatic generation mode.

Breaking it down.

Entry criteria hits for 20 stocks over the next 12 months. So, 20 entries.

All available funds in.

WWS engine switched on.

New entry candidate.

Worst weed out.

New candidate in.

New funds come in.

Top-ups.

New entries.

Number of stocks grows to 40.

Funds run out.

WWS engine switched on.

New candidate.

Worst weed out. New candidate in.

No new funds over the next five years.

5 new candidates. 30 top-ups owing to top-up criteria hits. Personal expenses. All funded by worst weed exits.

Number of stocks after these 5 years reads 25.

And so on and so forth.

Where are you? Nowhere in the picture.

It’s the math taking the decisions. The defined system. Rule-based. Exactitude. On auto. No emotion. No you. Except to press the buttons.

Sweet spot.

Seal it.

MarketAble

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What makes us…

…marketAble?

What’s it boiling down to?

The essence…

…or, if we will, the sediment…

…is…

…what…

…exactly?

It all starts off with savings.

Save, save, save.

Now, there’s a moat.

Let’s call it emergency fund, first.

Moat grows.

Comes a time, where we say… … enough.

That’s enough moat.

From that point onwards, we are able…

…to enter the market without the tensions of not having something to fall back on.

Within this time-frame of putting together an emergency fund and making it grow beyond critical mass, we haven’t been sitting idle.

Busy, baby.

Putting together a…

…system.

Rough stage.

Deployment stage, perhaps on paper.

Moat gone beyond expectations?

Right, system needs to be ready by now, to be deployed, live.

System goes live.

Refine.

Fine-tune.

Adjust.

Fiddle.

Attenuate.

Nail.

Will take some years.

In those years, we play it small.

Right.

Comes the sweet-spot.

You feel it.

System feels just…

…perfect…

…to us.

That’s the moment.

Now we can scale up.

We are continuing to, though, as per market situations — refine, fine-tune, adjust and attenuate.

Idea is to maintain the sweet-spot.

Goes away?

Bring it back.

Keep bringing it back.

Once we’ve learnt to keep bringing the sweet-spot back…

…we are then, from that point onwards…

…marketAble.

Behaviour at the Sweet Spot

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When you’re active,…

…happy,…

…at your financial goal,…

… and looking to go beyond,…

…what is this condition called?

It’s called…

…being at the sweet spot.

Stop here.

Enjoy it. 

It’s come after toil.

Don’t let is go.

Whatever you do from this point onwards, maintain the existence of the sweet spot.

If you’re careless, the sweet spot will be gone…

…and you’ll be back in the rut. 

If you don’t know how to behave at a sweet spot…

…you’ll most certainly see it go.

So…

…how does one behave at a sweet spot?

First up, don’t make too many moves here, because balance is brittle and has come at a cost. 

You’ve moved your mountains to reach here. Movement is done. 

Savings will emanate at the sweet spot. 

Tap these. 

Do whatever it is you wish to do from a part of these savings. 

As your savings grow further, detach yourself more and more from the rat-race. 

The sweet spot was the one where you told yourself you’d be happy. 

Beyond, you should be happier. 

Make sure that comes true for you.

Happy Living!

Not in the Mood?

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Right, good.

You don’t have to be. And good that you’ve recognized it.

Mood sets the tone for success… or failure.

For example, just now, I’m not in the mood to conduct due-diligence. There’s one company which has sparked my interest, a few days ago. Work needs to be done, to decide whether I’m investing or am out. Quality of work needs to be of the highest order. Otherwise I might take a wrong decision, meaning that I might invest in a dud, or might reject a multibagger. And what happens? I’m not in the mood to conduct any kind of due diligence. For whatever reason. What’s to be done?

Nothing.

I just don’t conduct it.

Period.

What if the opportunity goes away?

So be it. Another will come along. When? Whenever. World is full of opportunities.

Why am I so pricy about my behaviour?

Well why not? It’s called being in the sweet spot. You call all the shots. Including working when in the right frame of mind. Such a condition enhances the probability of success.

When will I be conducting the due due-diligence?

When would that be?

Whenever it happens naturally, without artificial pressure.

Am I just born lucky, to be in a position to work when I want?

Well, I’ve definitely had my share of great luck, and continue to have it, by the grace of Nature. On the other hand, and to put things in perspective, I also have, over the last twelve years, worked hard to create a situation for myself where I only invest when I wish to. There’s no pressure on me to invest. My bread and butter isn’t dependent on it. I call it being in the sweet spot.

Work towards your sweet spot.

Now.