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Wednesday, 8 March 2017

朋友, 敌人, 初心



Success depends on friends; greater achievements are spurred on by enemies.

We are our biggest enemy; never forget why we started the journey in the first place!


  1. Hi SMOL,

    I especially like the part about greater achievements being spurred by enemies. They say that good is the enemy of excellent also. If you're good, you're never going to reach excellence.

    But that might or might not be such a bad thing too haha

    1. LP,

      Yup. If Warren Buffett were happy with $100 million and considered that "good enough", he would have retired in his 40s and lived off his passive income.

      And we would not have heard of him...

      Hence greater achievements are done by those who will never retire since they do not consider what they do as "work" ;)

      As a grasshopper, I am not in it for the "achievements" since I won't live beyond winter.

      But I do want to overcome myself.

      A similar recurring theme in your blog posts too as in becoming bigger than yourself or outgrowing our problems ;)

    2. SMOL,

      But I do want to overcome myself.
      What does that means?

      I know it's not about setting a goal and achieving.

      It's more than that. But what exactly is that?

    3. Blursotong King,

      Glad you knew its not something quantitative that I'm after ;)

      Its qualitative like be a better person - whatever that meant!? LOL!

      Like for example - anger management, be less judgemental, be more considerate, etc...

      Of course when it comes to my craftsmanship with trading, much work remains to be done when it comes to my entries and exists ;)

    4. SMOL

      I see. Understood. Thanks!

    5. whats there to do with your entry and exits?

    6. coconut,

      Nothing. Just want to be competent in my trading craft.

      It's like asking the samurai warrior why he does the same sword swing a thousand times...

      Or why the Zen Buddhist who tries to draw a "more perfect" circle with his brush a thousand times...

      I am my worst enemy.

      I give the BEST excuses why it can't be done...

      Why I should be doing something else...

      Why I should just quit ;)

    7. practice is good, however skill (as in strategy) is only 10%, the rest of 90% are mental.

      mental is most traders lack, not skill.

    8. i guess it the same with everyone, mental.

      For trader can you take stop losses ten in a row?

      For lontger-term investor can you take 3 to 4 bear markets in a "row"?

    9. coconut and temperament,

      I expressed it as "entries and exits" - the execution part.

      Something which the reader can see.

      Of course behind the entries and exits is the mental part which you've described.

      The Mind part is the only M of the 3 Ms that can't be learned through books or courses - unlike Method or Money Management.

      Bei kambings who are new to trading swallow hook, line, and sinker the snake-oils' spin, "Only 5 minutes a day and you can trade you way to financial freedom!"

      How to explain the Mind part to newbies?

      You both know through your experiences.

      Hence I can only describe the execution part of the Mental part - entries and exits.

      In Zen, we say act with "No Mind".

      CW calls it "Less Analysing; More Investing".

      Anyone who hesitates or thinks too much before an entry or exit knows intuitively they are still far away from mastering the Mental part ;)

    10. i don't know to be a shame or not, it still can happen to me leh.

      Like i missed buying Global Logistic at it's 52 wk's low due to my limit order.

      This i would not regret at least i try ma.

      Of course should have bought some at offer price.

      The other one is Diary Farm at it's 52 wk's low, i just monitor until now lo!

      If this is not mental then what's is it?

    11. temperament,

      Your answer belies the Mental discipline you have for your entries ;)

      You let the trade come to you.

      Of course we will miss some trades this way, but evidently it has worked so far for you - considering the amount of experience you had ;)

      You would have changed it LONG ago if it did not work!

      For me, as a Trend Follower, the moment I decide to hope on a trend, I'll buy on the offer and sell at the bid.

      But if I would like to fade a rally or buy the dip, I'll do what you do ;)

    12. For (trading), any buy order do you enter a stop loss order simultaneously? (i never done it before. Can it be done)?

      My broker said it can be done.

      i still have my doubts.

      What happens if only your stop loss price is triggered for the day?

      Then you have a short sell position only which is opposite of what you don't want desperately in the 1st place.

      After you buy, do you enter your trailing stop or you only enter a trailing stop mentally?

      i use to enter "trailing stop" a few bids above the offer price only when i think it's time for me to sell.

      i feel quite strongly for short-term traders, they must keep on improving their practice of where to position their stop loss and trailing stop regardless of the market.

      For long-term traders, i think it should be no difference but we are no match for short term traders because they practise these 2 placings so much more often than us.

      Practice makes perfect ma!

      Must learn a little bit of short term trading leh!

    13. temperament,

      Yes, I can verify what your broker said is true.

      In your case, its a "If Done" order type since you do not already own the underlying shares.

      For example, you enter a "If Done" Limit Order to buy ABC stock at $1.50, and when it gets filled or "Done", the system will automatically create a Stop Order that you have previously created as part of the "If Done" order type.

      This is a 2 step process. The 2nd Stop order will only appear if your Limit Buy Order "gets done" - hence the name "If Done".

      So your fear of creating an unintended Short position will not happen.

      If I already owned stock ABC, I can also create an OCO (One Cancel Other) order that will create 2 orders at the SAME time in the system - one Limit Sell order to take profit when the stock hits my target price, and another Stop Order to limit my losses.

      Whenever one order gets filled, the other order in the system will be automatically cancelled - hence "One Cancel Other" ;)

      See? Unless one is an intraday trader, traders like me can create our orders in the morning and then go fishing!

      No need to stare at screens whole day ;)

      Tip: You may want to explore your broker's CFD platform as Advanced Order Types are a given since CFDs are for trading.

      For regular stocks trading, most retail platforms don't have and must go through Broker Assisted trades to create these Advanced Order Types.

      Unless of course your broker is Phillips. I am pleasantly surprised they just gave their advanced trading Poems Mercury platform to ordinary retail "investors" free of charge!?

      Their previous ProTrader must pay money one.

    14. SMOL,
      Thank you for bothering to share your experience with one only knows how to long only in the market.

      i think you are right, at times it's better to fight with 2 hands rather than the right hand only.

      i still don't know how to use my left hand with ease or efficiently leh.

      You did said, "the system will automatically create a Stop Order that you have previously created as part of the "If Done" (i suppose it is "if touched" as defined by SGX) order type."

      The system i suppose you are referring to the brokerage's system?

      i try to learn from SGX Website but nothing is better then from the horses' mouth.

      i think i have to be at least once becomes the horse before i know what's it really about.


      Seriously how often are you caught by "whiplash" in your trend trading by placing PTO of IF TOUCHED & STOP ORDERS?

      By now you must be very good at escaping the whip.

      Care to give an example what did you do to minimize the whip's effect?

      Taking in mind PTOs are not in the view of the market before they are converted to specific orders.

      But PTOs are in view at the Brokerage you use.

      So some bloggers say CFD is at times like the Brokerage is Genting and you are all the players in the Casino.

      How much truth is that?

    15. temperament,

      I'll try to reply your questions in a new post.

      This way, other traders may chime in so you'll get a balanced view.

      Especially when I put what I say to the "verifications" of others ;)

  2. Your FB friends is an indication of your success in the new world

  3. 一般的成就是疑兵,更高的成就是伏兵,


    1. Sillyinvestor,


      Most readers may not understand why I "poked" you the hardest. Not even the fisherman I poked like I do to you.

      Just look at what you have written.

      But not so easy to apply in every day living right?

      That's why I wrote this post. Its about overcoming ourselves; and using our enemies as catalysts to get us off our inertia...

  4. 智慧最重要。应该把勇气改成智慧。

    1. blackranchu,


      有勇气没智慧, 张飞是也!

  5. “最”字跟“智慧”两个字很难和谐

  6. where got cowardice, where got bravery.

    Where got foolishness, where got wisdom.

    Where got all these, if you are a frog in the well.

    You are still you because of you and not anyone else.

    智慧 comes from ?????????

    1. temperament,

      智慧 comes from "crash got sound" ;)

      Never underestimate the wisdom of the Hokkiens!


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