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Thursday, 28 November 2013

Friday, 22 November 2013

Mea Culpa (Yes, it's the freaking Mind part again!)

Mea culpa is a Latin phrase that translates into English as "through my fault". It is repeated three times in the prayer of confession at the Catholic Mass: mea culpa, mea culpa, mea maxima culpa — "through my fault, through my fault, through my most grievous fault".

No, it's not me proselytising.

It's a nice phrase. The modern equivalent I guess would be - "my bad".

By the way, when was the last time you admitted you were responsible?

I guess as much...

It's so much easier to blame the alignment of the stars, the weather, your parents, big daddy, management, and of course your crazy dog that ate your homework!

And if you have not made any mistakes recently, it's probably you have not done anything new or gone outside of your comfort zone. You know - do less; make less mistake?

Even if we have made a mistake, we wouldn't have profited from that experience if we did not admit it's mea culpa. Just pause for a moment and review your life's story.


Now take a look at your trading journal or investing diary. 

Since it's the Mind part of 3 Ms, you have to do this on your own.

Well, don't you want to have an edge over other investors/traders?

 

 

 

Tuesday, 19 November 2013

Sunk Cost Fallacy (The Mind part of 3 Ms)

Of all the psychological mental blocks, this one is one of the hardest to undo even if we are fully aware of it.

Sunk cost fallacy

Have you ever been in a movie where after the first half-hour you realised the movie is crap. What do we do? We stay till the boring ending when it would make better sense to just walk-out of the cinema. No? We have already paid for the tickets right?

How about that not so cheap shirt or blouse that we bought but it does not quite fit us now because we've gained some weight? That shirt or blouse is in the cupboard gathering dust as we tell ourselves we can wear them again when we lose weight. Yeah right!

Then there is that girl or boy you have been dating for 7 years now. You realised deep inside he or she is not that right for you... But to admit the 7 years have been a mistake is too much of a emotional baggage to let go. So you got  married anyway and go through the even more painful and hurting process of divorce years later...(You knew it all along; no surprises here. The only surprise is it took so long for your to finally "cut-loss"!)

There you go.

Now see if you can spot similarities between your day to day living and what you do with your investments or trading positions.

Knowing it is one thing. Willingness to change is another.

It's not easy. 

And it's definitely not anyone and everyone can overcome this sunk cost fallacy mental  block.

If you can, there's your edge over other investors/traders! Congrats!



Saturday, 16 November 2013

George Carlin - Euphemisms



Behind the humour, it shows the little lies we tell ourselves everyday, and the bull-shit we take from others.

Yes, I bull-shit myself by calling myself 46 years young. Who am I kidding?

Thank goodness the bull-shit of "ponding" was quickly thrown out!

Unfortunately, other extremes of political correctness have gone a bit overboard and is now common language... Visually challenged. Hearing impaired. What's that? I think I'll stick with the biblical versions.

Same goes for "investors" who care more about labelling and the nouns they call themselves, as if the unrealised losses will go away just by lying to ourselves.

It's never the nouns, its always about the adjectives:

Profitable or money losing

Good or lousy

Smart or clueless

Good friends are those who will call a spade a spade in your face. Treasure them!






 

Tuesday, 12 November 2013

Sunbathing Naked in Singapore?




Time just blew by when I am having fun!

Found this pic of me at Marina Bay Sands last year sunbathing in the nude?

Just look at the expression of the big mama watching in disgust. You can almost hear her thoughts: "Eh hello! Put it back on you botak man! So kecil also dare to take it out..."

LOL!


Sometimes we can do with a staycation instead of travelling overseas on a vacation and coming back even more stressed and tired.

Singapore is a fine city!

A lot more to explore and experience in our own backyard you know?




 

Saturday, 9 November 2013

Capitalism vs Socialism


 
An economics professor at a local college made a statement that he had never failed a single student before, but had recently failed an entire class. That class had insisted that Obama’s socialism worked and that no one would be poor and no one would be rich, a great equalizer.

The professor then said, “OK, we will have an experiment in this class on Obama’s plan”.. All grades will be averaged and everyone will receive the same grade so no one will fail and no one will receive an A…. (substituting grades for dollars – something closer to home and more readily understood by all).

After the first test, the grades were averaged and everyone got a B. The students who studied hard were upset and the students who studied little were happy. As the second test rolled around, the students who studied little had studied even less and the ones who studied hard decided they wanted a free ride too so they studied little.

The second test average was a D! No one was happy. When the 3rd test rolled around, the average was an F.

As the tests proceeded, the scores never increased as bickering, blame and name-calling all resulted in hard feelings and no one would study for the benefit of anyone else.

To their great surprise, ALL FAILED and the professor told them that socialism would also ultimately fail because when the reward is great, the effort to succeed is great, but when government takes all the reward away, no one will try or want to succeed. Could not be any simpler than that.

Here are possibly the 5 key points about such an experiment:

1. You cannot legislate the poor into prosperity by legislating the wealthy out of prosperity.

2. What one person receives without working for, another person must work for without receiving.

3. The government cannot give to anybody anything that the government does not first take from somebody else.

4. You cannot multiply wealth by dividing it!

5. When half of the people get the idea that they do not have to work because the other half is going to take care of them, and when the other half gets the idea that it does no good to work because somebody else is going to get what they work for, that is the beginning of the end of any nation.


Post borrowed with pride from Armstrong Economics

 
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