This is an awesome video on how to be cool. Learn and listen carefully
Tuesday, February 12, 2008
More Jesse Livermore Quotes
“With me I must back my opinions with my money. My losses have taught me that I must not begin to advance until I am sure I shall not have to retreat. But if I cannot advance I do not move at all. I do not mean by this that a man should not limit his losses when he is wrong. He should. But that should not breed indecision. All my life I have made mistakes, but in losing money I have gained experience and accumulated a lot of valuable don’ts. I have been flat broke several times, but my loss has never been a total loss. Otherwise, I wouldn’t be here now. I always knew I would have another chance and that I would not make the same mistake a second time. I believed in myself. A man must believe in himself and his judgment if he expects to make a living at this game.”
Awesome! I love his attitude. Never give up and don't hesitate!
“The game taught me the game. And it didn’t spare the rod while teaching.”
Haha!
"And right here let me say one thing: After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight! It is no trick at all to be right on the market. You always find lots of early bulls in bull markets and early bears in bear markets. I've known many men who were right at exactly the right time, and began buying and selling stocks when prices were at the very level which should show the greatest profit. And their experience invariably matched mine - that is, they made no real money out of it. Men who can both be right and sit tight are uncommon. I found it one of the hardest things to learn. But it is only after a stock operator has firmly grasped this that he can make big money. It is literally true that millions come easier to a trader after he knows how to trade than hundreds did in the days of his ignorance."
Excellent!!!! If you really, really, really, want to know how to make big bucks - reread this 100 times. This applies to life as well. We see so many things on TV, newspaper about get rich quick schemes. I been in some of them and with other investments, such as property, if i just sit tight and wait, the big money comes when you're patient. A very simple concept but very, very hard to execute. You will find too many people who wants to get rich quick, while there are a few people that are patient and let the money comes to them.
Awesome! I love his attitude. Never give up and don't hesitate!
“The game taught me the game. And it didn’t spare the rod while teaching.”
Haha!
"And right here let me say one thing: After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight! It is no trick at all to be right on the market. You always find lots of early bulls in bull markets and early bears in bear markets. I've known many men who were right at exactly the right time, and began buying and selling stocks when prices were at the very level which should show the greatest profit. And their experience invariably matched mine - that is, they made no real money out of it. Men who can both be right and sit tight are uncommon. I found it one of the hardest things to learn. But it is only after a stock operator has firmly grasped this that he can make big money. It is literally true that millions come easier to a trader after he knows how to trade than hundreds did in the days of his ignorance."
Excellent!!!! If you really, really, really, want to know how to make big bucks - reread this 100 times. This applies to life as well. We see so many things on TV, newspaper about get rich quick schemes. I been in some of them and with other investments, such as property, if i just sit tight and wait, the big money comes when you're patient. A very simple concept but very, very hard to execute. You will find too many people who wants to get rich quick, while there are a few people that are patient and let the money comes to them.
Jesse Livermore Quotes
If you really want to learn about human psychological behavior. Study the stock market. A lot of people think that making money on the stock is all about market predictions and knowing the latest news.
If you currently/were investing in stocks, you found out that the most important factor of success is mainly your own self-control and your insight in market psychology.
I learned so much about myself when i was trading on the stock market years ago (and I haven't played it since then). I was reading several quotes by Jesse Livermore from a book that every investor should read, "Reminiscences Of A Stock Operator".
Here are a few golden quotes:
“If I hadn’t made money some of the time I might have acquired market wisdom quicker.”
This is so true. Important life lesson is learnt best when they cause pain or discomfort.
“There is nothing like losing all you have in the world for teaching you what not to do. And when you know what not to do in order not to lose money, you begin to learn what to do in order to win. Did you get that? You begin to learn!”
This is a very, very true. This applies to the stock market as well in anything in life. When you lose everything, it makes you smarter - you already know what to do to avoid being in the same situation.
“A stock operator has to fight a lot of expensive enemies within himself.”
Ouch. When I lose big, I lose self control - which means i going to gamble more- that means i going to throw away all my winning. Trying to fight your internal demons is damn hard.
“It takes a man a long time to learn all the lessons of all his mistakes. They say there are two sides to everything. But there is only one side to the stock market; and it is not the bull side or the bear side, but the right side. It took me longer to get that general principle fixed firmly in my mind than it did most of the more technical phases of the game of stock speculation.”
Wow! A great quote. With all these quotes, it can be applied in life as well.
If you currently/were investing in stocks, you found out that the most important factor of success is mainly your own self-control and your insight in market psychology.
I learned so much about myself when i was trading on the stock market years ago (and I haven't played it since then). I was reading several quotes by Jesse Livermore from a book that every investor should read, "Reminiscences Of A Stock Operator".
Here are a few golden quotes:
“If I hadn’t made money some of the time I might have acquired market wisdom quicker.”
This is so true. Important life lesson is learnt best when they cause pain or discomfort.
“There is nothing like losing all you have in the world for teaching you what not to do. And when you know what not to do in order not to lose money, you begin to learn what to do in order to win. Did you get that? You begin to learn!”
This is a very, very true. This applies to the stock market as well in anything in life. When you lose everything, it makes you smarter - you already know what to do to avoid being in the same situation.
“A stock operator has to fight a lot of expensive enemies within himself.”
Ouch. When I lose big, I lose self control - which means i going to gamble more- that means i going to throw away all my winning. Trying to fight your internal demons is damn hard.
“It takes a man a long time to learn all the lessons of all his mistakes. They say there are two sides to everything. But there is only one side to the stock market; and it is not the bull side or the bear side, but the right side. It took me longer to get that general principle fixed firmly in my mind than it did most of the more technical phases of the game of stock speculation.”
Wow! A great quote. With all these quotes, it can be applied in life as well.
How to Build Courage
A few days ago, one of my friends did one of the most uncomfortable thing he done in his life. I was proud of him. I'm not going to discuss it here to protect his privacy.
What he did was that he was planning to do that 'thing' within a month time. I was surprised that he did it a few days instead of a month or worse, never. If he acted later, he would had more sleepless nights, more worry and eventually his emotional state would negatively impact on other people as well.
He was courageous and just did it. When you become courageous, you automatically become confident.
You don't get courage from sitting on your ass all day, contemplating on how and why you should do it. He just did it. Full stop.
He picked the one thing that was the most uncomfortable and did that first. Not only did it kill off any procrastination, it built up his courage. Action cures fear. Even though it was painful for him to do it initially but it lifted up a huge weight off his shoulder.
So if you want to build up a courage, do the most uncomfortable thing first and don't hesitate - like the nike logo says - Just Do It.
What he did was that he was planning to do that 'thing' within a month time. I was surprised that he did it a few days instead of a month or worse, never. If he acted later, he would had more sleepless nights, more worry and eventually his emotional state would negatively impact on other people as well.
He was courageous and just did it. When you become courageous, you automatically become confident.
You don't get courage from sitting on your ass all day, contemplating on how and why you should do it. He just did it. Full stop.
He picked the one thing that was the most uncomfortable and did that first. Not only did it kill off any procrastination, it built up his courage. Action cures fear. Even though it was painful for him to do it initially but it lifted up a huge weight off his shoulder.
So if you want to build up a courage, do the most uncomfortable thing first and don't hesitate - like the nike logo says - Just Do It.
Sunday, February 10, 2008
The Secret of Selling
I was talking to one of my client a week ago. We were talking about life, her job and eventually she was talking about her son.
She told me that her son was a car salesman. She told me that he was so successful that the car manufacturer in Japan had his name stuck on their wall. He was selling on average, 39 cars a month. This is an average only, imagine how much he would sell on a good month and some salesman are lucky to sell 10 cars a month.
Immediately in my mind that I thought his son was a sort of mind reader or have some special mind powers that he could manipulate people. I was wrong. The secret that he had was not very obvious and counterintuitive.
The secret of his technique was that he is 100% honest with his customers. I was shocked. I thought you have to manipulate people in buying things they don't want.
If you are honest, you automatically create trust with that person. If you manipulate people, they will build mental barriers towards you. They can't trust anything what you say.
Building trust also means more word of mouth and more repeat business. Have you ever bought something from a person who promise your product to deliver certain results but didn't deliver? Would you go back to see that person again?
Conversely, if a salesperson sells you something and is honest and directly warns you that the product might break down and you might be disappointed with the product. Would you still go back to the same person?
She told me that her son was a car salesman. She told me that he was so successful that the car manufacturer in Japan had his name stuck on their wall. He was selling on average, 39 cars a month. This is an average only, imagine how much he would sell on a good month and some salesman are lucky to sell 10 cars a month.
Immediately in my mind that I thought his son was a sort of mind reader or have some special mind powers that he could manipulate people. I was wrong. The secret that he had was not very obvious and counterintuitive.
The secret of his technique was that he is 100% honest with his customers. I was shocked. I thought you have to manipulate people in buying things they don't want.
If you are honest, you automatically create trust with that person. If you manipulate people, they will build mental barriers towards you. They can't trust anything what you say.
Building trust also means more word of mouth and more repeat business. Have you ever bought something from a person who promise your product to deliver certain results but didn't deliver? Would you go back to see that person again?
Conversely, if a salesperson sells you something and is honest and directly warns you that the product might break down and you might be disappointed with the product. Would you still go back to the same person?
Friday, February 8, 2008
Getting Experience Is Not Free
Lately, one of my friend was scammed through ebay. He loss a good sum of money. During the intial stage of the process, everything went pretty smoothly. He trusted this seller.
After he sent his money over via Western Union (never ever transfer money to strangers via Western Union - you can't get a refund back), everything went pear shape. The seller confirmed that he sent it and when my friend asked him for a tracking number he told my friend to wait for 10 mins while so he can contact his boss in africa to give him the details.
Well, 1 hour had passed and no tracking number. He then argued with my friend because he said that he didn't trust him. Finally, he said he going to send it by DHL but he has to pay extra shipping cost.
Seems like every time he talks to this guy, he tries to milk more money of my friend.
Now, my friend is really pissed off. He got the phone number of this guy and wants to hunt him down if his legit.
All he can really do is to wait to see if the package arrives or learn from his mistakes.
Just think of it as tuition fee for your experience. This is what Jesse Livermore, the greatest stock trader ever lived said,
"The loss of the money didn't bother me. Whenever I have lost money in the stock market I have always considered that I have learned something; that if I have lost money I have gained experience, so that the money really went for a tuition fee. A man has to have experience and he has to pay for it."
After he sent his money over via Western Union (never ever transfer money to strangers via Western Union - you can't get a refund back), everything went pear shape. The seller confirmed that he sent it and when my friend asked him for a tracking number he told my friend to wait for 10 mins while so he can contact his boss in africa to give him the details.
Well, 1 hour had passed and no tracking number. He then argued with my friend because he said that he didn't trust him. Finally, he said he going to send it by DHL but he has to pay extra shipping cost.
Seems like every time he talks to this guy, he tries to milk more money of my friend.
Now, my friend is really pissed off. He got the phone number of this guy and wants to hunt him down if his legit.
All he can really do is to wait to see if the package arrives or learn from his mistakes.
Just think of it as tuition fee for your experience. This is what Jesse Livermore, the greatest stock trader ever lived said,
"The loss of the money didn't bother me. Whenever I have lost money in the stock market I have always considered that I have learned something; that if I have lost money I have gained experience, so that the money really went for a tuition fee. A man has to have experience and he has to pay for it."
Thursday, February 7, 2008
Burn Your English Grammar Books
Lately, I've been re-reading my old posts and posts from other blogs. What i notice so far is that the most interesting posts are usually posts that have shitty grammar and spelling mistakes but are written from their heart. It doesn't matter what it say but how they say it.
The good posts i noticed were usually emotionally driven. They had something they want to talk about. I don't want to read a blog about the anatomy of a brain - it would be too boring, too rigid, it would feel like a boring sermon at church.
Instead, I want to read a post about why a crazy surgeon chopped a man head off just so he could look at his brain and then make a soup out of his brain afterwards. MMMMM.....Yummy!!
Anyway, who reads academic texts books in their spare time? Do you read a text book when you take a dump?
...maybe some nerds do, but most people don't. In fact, i bet you one dollar that most people will read one of those trashy tabloid magazines or if you're really horny, look at pornos.
Be honest. I know some of you do. I know some of you have weird fetishes by the way.
Anyway, that's all i want to say now.
P.S I don't read pornos in the toilet - just to let you know.
The good posts i noticed were usually emotionally driven. They had something they want to talk about. I don't want to read a blog about the anatomy of a brain - it would be too boring, too rigid, it would feel like a boring sermon at church.
Instead, I want to read a post about why a crazy surgeon chopped a man head off just so he could look at his brain and then make a soup out of his brain afterwards. MMMMM.....Yummy!!
Anyway, who reads academic texts books in their spare time? Do you read a text book when you take a dump?
...maybe some nerds do, but most people don't. In fact, i bet you one dollar that most people will read one of those trashy tabloid magazines or if you're really horny, look at pornos.
Be honest. I know some of you do. I know some of you have weird fetishes by the way.
Anyway, that's all i want to say now.
P.S I don't read pornos in the toilet - just to let you know.
Wednesday, February 6, 2008
Two Reasons Why You're Not Successful
Im been thinking very seriously why a lot of smart people are not successful. I watch a DVD program called, 'Get Altitude', it said the reason people are prevented from success are due to:
1. Emotional Estimation
People are horrible in predicting how the future will make us feel. For example, if we do something we think its going to make us feel good or if you do something else, its going to make you feel bad. Or if you feel good about something, then you think its going to be good. (its probably usually wrong - see my below post about uncomfortable decisions for further explanation)
2. Seeing and Seeking Only Validation
I was thinking about this seriously, when i was playing poker, i was seeing the things where i made the right decisions but i didn't really see where i was wrong. I keep thinking i was the best but i was probably was making an amateur mistake. I had a big ego.
To solve this he said you require:
Data driven decisions - When was the last time you track your results? With playing poker - i never ever track my resullts i.e win/loss rate, amount usually bet etc. Your mind can't argue with numbers. Numbers dont have an opinion, they can't tell you personally how good you are.
Test, Model, Project - Do a test, build a little model with the results, and then project.
1. Emotional Estimation
People are horrible in predicting how the future will make us feel. For example, if we do something we think its going to make us feel good or if you do something else, its going to make you feel bad. Or if you feel good about something, then you think its going to be good. (its probably usually wrong - see my below post about uncomfortable decisions for further explanation)
2. Seeing and Seeking Only Validation
I was thinking about this seriously, when i was playing poker, i was seeing the things where i made the right decisions but i didn't really see where i was wrong. I keep thinking i was the best but i was probably was making an amateur mistake. I had a big ego.
To solve this he said you require:
Data driven decisions - When was the last time you track your results? With playing poker - i never ever track my resullts i.e win/loss rate, amount usually bet etc. Your mind can't argue with numbers. Numbers dont have an opinion, they can't tell you personally how good you are.
Test, Model, Project - Do a test, build a little model with the results, and then project.
Don't Fall Into Becoming The Victim
When i lost a ton of money a few hours ago, I wanted to tell my friend that i lost a ton of money - I wanted him to feel sorry for me. I wanted someone to acknowledge that i had done a big mistake.
It felt like being congratulated for losing shitloads of money or felt sorry for. Retrospecting on this, i think this is the worse thing that i can do. Everytime i do this, i make people feel sorry for me. This is unfair to them - because i'm manipulating them and i havent learnt a thing.
In fact, i will eventually keep making the same mistakes and i become the victim due to my own self-manipulation. Have you ever had any friends that you feel sorry for? If you look deeper into this person, the person is actually manipulating you and himself/herself - and they don't even realize it. Most of the time, they want attention and approval.
I think this is my weakness - wanting attention and approval. But i think it's not best to dwell on it. I need to let it go. That's the hardest thing, letting it go.
It felt like being congratulated for losing shitloads of money or felt sorry for. Retrospecting on this, i think this is the worse thing that i can do. Everytime i do this, i make people feel sorry for me. This is unfair to them - because i'm manipulating them and i havent learnt a thing.
In fact, i will eventually keep making the same mistakes and i become the victim due to my own self-manipulation. Have you ever had any friends that you feel sorry for? If you look deeper into this person, the person is actually manipulating you and himself/herself - and they don't even realize it. Most of the time, they want attention and approval.
I think this is my weakness - wanting attention and approval. But i think it's not best to dwell on it. I need to let it go. That's the hardest thing, letting it go.
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