About being right
Posted by Danny on July 6, 2016
Investing is not so much about being right, it is all about being ready.
- Being ready to be right, and being ready to be wrong.
- Being ready for the expected and the unexpected, and for the unexpectable.
- Being ready to walk alone with an opinion, and being ready for an agreeing crowd if that’s what crosses your path.
- Being ready to change your mind, and to change your mind about changing your mind.
- Being ready to take 10 losses in a row and still put on that 11th trade.
- Being ready to take 10 wins in a row and not feel like you have figured out the market when you put on the 11th trade.
- Being ready to abandon your favorite method if it becomes too popular, and to pick it back up when the crowd has moved on to the next fad.
- Being ready to forget about the news and to remember the market’s reaction to it.
- Being ready to keep calm when the market gets excited and to get excited when the market becomes unusually calm.
- Being ready for market craziness as well as for market sense.
- Being ready to stop trading when the market offers you no edge.
- Being ready to take a loss after 1 day and to take a profit after 10 years.
- Being ready to see very different outcomes emerge from very similar situations. Yes, it can rain without clouds.
- Being ready to keep quiet about your profits. Don’t jinx yourself.
- Being ready to negate advice and stock tips, especially if you have paid for them.
- Being ready to examine the three sides of a coin, as well as the one side of a dice.
- Being ready to act decisively when you feel very uncertain, and to pause yourself when you feel very certain. The best opportunities come amidst great uncertainty.
- Being ready for the fact that our readiness will always be incomplete.
There is the old adage that you are only as good as your last trade. I think that’s totally wrong. You are only as good as your next trade. Are you ready?