Tag Archives: #WorstWeedStanding

Numbers, Baby

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We spoke about our shift in thinking, …

… remember?

Magic Bull has decoupled…

…in its approach.

The WWS exit pathway.

Worst weed standing.

Remember that name.

And out it goes.

Upon opportunity.

Upon expenses.

Now here’s another one.

BPS.

Best performing scrip.

Add to.

Get its buying average down, on purpose.

It’s got maximum runway, to WWS.

That’s why, add to it from proceeds, from fresh income.

Don’t look at any other metric.

Just the fact that it’s the BPS.

And add.

It’s performing.

You’re betting on continued performance.

A few quarters might dip.

Unless it demotes to WWS, it won’t be expunged.

Then 8 quarters in a row – extraordinary growth.

Remember that high growth is a non-linear entity.

To catch it, and harness it optimally, we must be…

there.

In the most manageable, highest magnitude way.

As you keep adding to your BPS, it eventually gets demoted to number two, or three, or something.

Because, buying average dips.

That’s great.

Now we have a new best performing scrip to be added to.

Sideway injections. Bombastic results from a held scrip above buying average? Add to, one lot.

New members. Bombastic YoY results and a little QoQ improvement too? Add to, one lot.

That’s the entire system.

Funds move towards strength.

No affiliations.

No married to.

You control by attenuating the speed and the magnitude of WWS exits.

All held above 25%?

Stop the expunging.

Trade something else on another platform, other underlyings or scrips, for distraction.

Or…

…go on a holiday.

Advice?

Advisor?

No room.

Also, where is the need?

Everything is right here.

Programme your AI to serve results on a platter, screened, each morning, to feed the system with sideway injections and / or potential new candidates.

All we need now…

…is guts, to follow through.

Rest is all numbers…

…baby.

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.

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.