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Monday, 7 April 2014

Difference between Knowledge and Wisdom

Knowledge is knowing the answers to questions.

Wisdom is knowing when to act blur; and when to apply what you know.

Married couples or those living-in-sin together quickly learn the difference.

Knowledge is knowing you are right and your significant other is idiot and irrational.

Wisdom is agreeing with him/her. 

Many veteran investors and traders are knowledgeable; a few are wise.

Knowledge is only buy shares if their prices can go up. If they don't, we don't buy.

Wisdom is knowing that's an April fool kind of joke!

I shall leave you with one mind-fxxking Eastern philosophical quote for you to contemplate:

“To attain knowledge, add things everyday. To attain wisdom, remove things every day.” - Lao Tsu


  1. We are both knowledgeable and wise. Guess who are not?

  2. Hi SMOL,

    “Wisdom is the right use of knowledge. To know is not to be wise. Many men know a great deal, and are all the greater fools for it. There is no fool so great a fool as a knowing fool. But to know how to use knowledge is to have wisdom.”

    Charles H. Spurgeon quotes (English preacher of 19th century 1834-1892)

    "By three methods we may learn wisdom: first, by reflection, which is noblest; second, by imitation, which is easiest; and third, by experience, which is the most bitter.”

    So when we invest, how do we do it after accquring some investment knowledge?
    By reflection, imitation or experience?
    By which method will or should gives you investing wisdom lasting for life?
    The bitter one i suppose.
    Wait a minute, but fool like me had repeated the same type of investing mistakes.
    Where my wisdom from experience has gone too?
    Pray tell me.

    If not repeating the bitter experiences, i would have been multi-millionaire already. so i think it may be the same for some of you.

    1. temperament,

      The fool may the person who believes anyone and everyone can do it.

      I cheer the thinking for ourselves and walking our own path part.

      I'll never suggest our destinations will be the same when I've no clue where I am going... (setting goals and making plans is not the same as knowing the future)

      Imitation is the easiest so most practice this kind of "wisdom".

      But deep down in our hearts, we know the quicker we can profit from our own experiences, and the more often we do self-reflections - the more distance we put ourselves with "average".

  3. We are both knowledgeable and wise. We are.


    1. ....


      We are the world! We are the children! We are the ones who make a better day, so let's start...

  4. Knowledge grant you success, but wisdom happiness.

    Knowledge gains respect, but wisdom gains trust.

    I think I have both, but too little of both muhahaha. Just like all of us are muscular, because we all have muscle tissue, whether the muscle is toned is another thing.

    Wisdom is losing the battle to win the war.

    1. We are both knowledgeable and wise. We are. Yes. We are


    2. Can we learn to be wise without the knowledge?
      Is it possible?
      How come there is the knowledge in the first place?
      Who discovered or invented it?

    3. When you discover or invent it; it is wisdom!


    4. This remind me of :-
      “Imagination is more important than knowledge. For knowledge is limited to all we now know and understand, while imagination embraces the entire world, and all there ever will be to know and understand.”
      ― Albert Einstein

      So with all the investment knowledge we know and more to know if we google or go to NLB, is all this of any use to us, if we have no imagination?

    5. Guys,

      Knowledge can be acquired - take a course, read a book, asking, etc. It's outside in.

      Imagination and wisdom are more about inside out. We can grow this skill; I am skeptical whether it can be taught.

  5. l do not have much wisdom. l am lacking knowledge too. Will not overload myself with too many or much excesses. Come what may.

  6. In the stock market, we need both knowledge and wisdom to become rich in the next window of opportunity.

    For seniors and veterans in the stock market, check your own wisdom benchmarking in 1998, 2001, 2003, and 2009; only the wise ones were laughing to the bank.

    The more knowledgeable ones are still talking loudly!


  7. knowledge means acquiring know how to be wisdom.

    wisdom means realised that that is not going to be the case.

    1. knowledge play no role in trading success, in fact, it has a negative impact on our long term performance.

      wisdom also play no role in that but it at least it stop us from doing silly thing in the market.

    2. well, knowing that knowledge is not going to help us in our trading, thats wisdom (haha),

      then what? no knowledge then we can make a killing? definately not. so it does not help us at all!

    3. coconut,

      I clap with joy on your comment 8:20AM.

      Your comment 8:41AM I go "what talking you?"

      1st part I agree as knowledge can work against us - it's the thing we thought we know when it ain't so that hurts us the most.

      The 2nd part wisdom has no role I got issue with... My pentium 2 processor needs some time to digest what you say...

      What's the brand of cigarette you smoking? Got ganja inside?

    4. if you want to succeed in trading, you have to find the common ground where all things exits and survive, how they function and base on what element.

      to what i know, other things don't have knowledge and wisdom but they exit too.

    5. don't misunderstood between knowledge with experience.

      i can strike dead center at the cue ball each time i play a shot in snooker, that is experience and not knowledge.

      well maybe not so dead center anymore haha...

  8. Ha! Ha!

    "The more knowledgeable ones are still talking loudly!"
    Right! Of course!
    Empty vessel makes the most noises mah!

    That means we are here, does it mean we are all guilty?
    No lah!
    i think we all need to excercise our brains one way or another.
    If not our brains will go to pot.
    And we may be seized by clinical depression.
    Dementia may be next in waiting hoh!
    Please make all the noises you want but with good faith hoh!
    For that, we must thank SMOL for his tireless effort, allowing us to all to make all the noises.
    He is like a conductor for us all to let go our steam.
    Hey SMOL, are you feeling hot or cold now?
    Ha! Ha!

    1. temperament,

      I'm more a Jazz player here.

      I play a tune or two. Others most welcome to join this jam session!

      Anyone can have their solo time - just look at coconut when he hits his groove :)

      No conductor; no leader. Just us cool cats ;)

      Please hor, keep the noise down; got children sleeping next door.

      Want to let off steam? Wrong place leh. Gyeland if you prefer local local. Orchard Towers if you prefer expat experience.

      Gentlemen please! (In my English butler accent)

    2. can throw stone if you don't like his music, its a fun place to hang around!

    3. especially when you are heavily involve in the market place, a great place to hide out and take a break.

    4. coconut,

      May I recommend you throw money instead?

    5. throw some stone, sharpen my forcast and out we go again haha....

    6. Buay tahan.

      I try again.


      I thirsty.

    7. thirsty is no good, don't go to the pond of water when you are thirsty, go there when you are not.

    8. coconut,

      That's wisdom!

      But you still giam siap gui :(

    9. what giam siap gui?

      last week i went out with my broker, he suppose to entertain me, ends up i foot all the bills you know!

      i even offer him a ride home but he decline, like this guy, young and full of engery, but fail in trading full time thats why work in brokerage firm.

    10. before you comment anything, let me explain.

      i think i need my broker more than they needed me, i told him its a partnership, not customer relations. so i'm more than willing to pay the bills.

      i'm not a kongkum!

    11. coconut,

      I think other brokers will be jealous. With the trading volume you are generating, and your portfolio size not ikan bilis either, I take my words back.

      Your freaking generous!

      But then, with a client like you with screws missing... I'll have my daily nightmares handling risk management on you if I am your broker... LOL!

      Yup, you better treat your broker well ;)

    12. if anything good about my trading, its risk management! not guts or predicting the market.

      i sleep well, my broker too.

      now i'm thinking of long term investment, thats a different story. my investment phylosophy is "buy the stocks, lock in the safe, throw away the key!" haha.

    13. Your broker reading this will be crying....

      There goes his churn account :(

    14. Read? Don't be a victim! 3 ways to control your investing destiny

      Come home to rest in boredom one day!

      "Munson was once a high-flying NY trader. Now he’s seen the light, focusing on building long-term wealth for more passive investors. He’s found the switch to “boring” to be much more profitable than when speed trading."

    15. no, my "broker" don't earn commission on my trades, he is a client manager/trainer. he do not care if i quit or not.

      CW thanks for that reference, not too sure this guy you mention trade for himself, i bet he is not. if you trade your own money, its a whole world of different.

    16. i like his comment, "People who absolutely must trade can..." haha, there are people like that. i guess i'm one of them haha.

    17. Do what is flowing in your blood type. Yeap.


    18. yes sir.

      like to share (again) the story of my brother, recently retired and took most his money about 300k in CPF and bought many REITs for investment in 2010.

      now its worth 500k+ and a constant flow of dividend into his pocket, around 30k+ a year!

      wow i'm really proud of him, this is the first time he ever invest in the stock market, with the help of my advise ofcos haha.

    19. :)

      There's no need to proselytise here.

      Diversity is accepted and welcomed here. Got screws; no screws. Ebony or ivory.

      George Soros at his advanced age was rumoured to have made US$ 1 billion shorting the Japanese Yen last year. His trading instincts still super sharp!

      We are what we are; why be someone else?

    20. coconut,

      Oh! I would have treated your broker too.

      Now I understand what you meant by saying he failed as a trader... Working for a salary is not the same as working as an "entrepreneur" by being a full commissions independent dealer or remisier.

    21. yes, he is pretty knowleagable about financial market but when i confront him with system trading, he confused.

      oh yes, my brother really respected my opinion cos of what i do, but i told him frankly i don't do what i ask him to do, and he is not "allow" to do what i do! haha.

    22. he also told me many of his clients are wealthy people with money made from other field but lost in trading.

      he probably think i'm one of them cos i don't reveal to him i made all in trading and that i'm a retired businessman or something.

  9. Very cool comparison! Keep up both your knowledge and wisdom! ;-)

    1. Welcome Richard to our little kopi-tiam corner!

    2. what copi tiam corner?!!

      we have very good investor and aham, good traders here!

    3. We are both knowledgeable and wise here.

      See those evidences in our comments!


    4. ya, cannot find similar comments anywhere else. no copy and paste one.

  10. last week, the issue of HFT was exploded in the US, very big news and all over the place.

    back home, nothing heard or talk about except me posted some stupid comments on fats blog.

    1. coconut,

      For small retail players, HFT is not an issue as we already have our friendly neighbourhood syndicates - we got immunisation!

      Must be age. Young I play penny stocks; now I've lost my bxlls...

      But then, I still punt on the medium sized S-chips. Guess that recovered some of my manhood?

    2. HFT is a very big issue, not HFT itself but how technology is shaping our markets, its structure and traders and investors.

      is like how QM had shape our current world!

      i'm all for it.

    3. worry about flash crash is like worry about an atomic bomb may go off accidentally, its worth the risk.

    4. coconut,

      Talk more; wrong more.

      Flash crash and atomic bomb???

      Here, is this the screw you dropped?

    5. when HFT met or interact with HFT, is like playing with atom or sub atomic particles, like what they do in the large hadron collider (LHC) in CERN. very dangerous place to be.

    6. coconut,

      Ok.... And that's worth the risk to you?

      Hmm. I think I can practice what Lao Tsu says on wisdom: I erase what I've read just now.


  11. Hi coconut,
    If my portfolio from 300K to 500K now, i will start to take some profits to prepare for the next trip, regardless of the dividends payout /year. Unless of course you still have too much cash sloshing around in your "stomach".

    Nevertheless i agree with you on:-

    "oh yes, my brother really respected my opinion cos of what i do, but i told him frankly i don't do what i ask him to do, and he is not "allow" to do what i do! haha."
    And that to me is an example of wisdom because of your knowledge & experiences.
    And that to me is You have lived your life well!


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