there may be other reasons but logically i think guru signals are just like traffic lights. ultimately whether we cross the road is our own decision.
not everyone has the same unique circumstances as the guru. so with signals from the guru, we are still free to decide if we wish to make the transaction, size the transaction, time the transaction etc. there are unlimited permutations.
also guru will give confidence levels in the signals. some of us may only choose to follow high confidence signals.
strategies must make sense in theory and be executed in practice in order for them to be successful. some people may not be able to stomach the idea of letting others manage their money hence following signals may be the best way.
another reason i can think of is this is a method of regulatory arbitrage where i dont have to be an "accredited investor" to let others manage my money.
perhaps there are more and we are just talking about rational considerations.
Reminds me of another story, and this is a real case example of how I teach.
There's a topic called binomial in A'lvl and usually students who had been through O'lvl will know that. But most if not all students would have forgotten how to do it after their O'lvls.
The first thing I do when I introduced the topic in A'lvl is to ask them if they remember how to do the binomial in O'lvl. They sheepishly said no. I said GOOD! Then they can enter the A'lvl topic with no baggage and less things for me to unwind and rewrite! LOL
So, once you learnt it, forget about it. Throw it away and re-discover it in your fresh expert-newbie eyes.
Hmm... It takes time to mature and be able to think on your own. I am still learning and I don't think I can do it. I am always looking at others and over my shoulder and see if I am on the right path. Hope I don't fall over the cliff!
Nah... I am a free spirit person. Don't like to be constraint by rules and regulation. When you are working in an organization, you need to be sure what are the rules so as to be seen doing the right thing. No choice.
This post is a copy paste (note the irony!) from a much longer article.
ReplyDeleteI thought it would blend right here at this watering-hole since the animals here are not afraid to express their own opinions.
The essence of DIY investing/trading is exactly what it meant - DO IT YOURSELF.
I never quite understood those investors/traders who buy subscription services to get buy and sell signals from "gurus".
I mean isn't is better to give money to these "gurus" to invest/trade on your behalf as in outsourcing to a professional money manager?
You don't buy a dog and do the barking yourself, do you?
Or go for Passive Indexing if Active Fund Management is not your thing.
The above 2 options would be more "honest".
I mean what's the point of "calling" yourself a DIY investor/trader if all you do is - people buy you buy; people sell you sell?
Even for investing courses; some "gurus" require subscription for scanning stocks based on their formula.
ReplyDeleteCW,
DeleteThis called corral your flock into a sales funnel.
Then you can milk or fleece the sheep forever and ever until they bled dry or woke-up.
Whichever comes first ;)
there may be other reasons but logically i think guru signals are just like traffic lights. ultimately whether we cross the road is our own decision.
ReplyDeletenot everyone has the same unique circumstances as the guru. so with signals from the guru, we are still free to decide if we wish to make the transaction, size the transaction, time the transaction etc. there are unlimited permutations.
also guru will give confidence levels in the signals. some of us may only choose to follow high confidence signals.
strategies must make sense in theory and be executed in practice in order for them to be successful. some people may not be able to stomach the idea of letting others manage their money hence following signals may be the best way.
another reason i can think of is this is a method of regulatory arbitrage where i dont have to be an "accredited investor" to let others manage my money.
perhaps there are more and we are just talking about rational considerations.
Jon Smith,
DeleteSorry. I don't buy it.
Hedge fund managers and sovereign funds buy research. Nothing wrong here.
We can take counsel and seek advice all we want, BUT the decision and implementation will remain with us.
Traffic lights are "herding" tools.
The level of confidence in the signals should be determined by the user; NOT the snake-oil. Again, that's "herding".
It seems your "rational considerations" are all "herding" tools used during my shepherd days.
So it clear what you are; you are definitely NOT a sheep ;)
我发现到在找寻自我中，得罪了不少人。
ReplyDeleteSmall Time Investor,
Delete你说呢？
我在这里笑谈风云，我行我素， 讲一些有的没的。。。
是有代价的！
我是用真名真姓。不回避，不闪躲。
假情假意，那多浪费时间！
我就是我。
大哥
Delete谢谢你的指点迷津
找和代分割来便有个“戈“
“戈”的解释便是一种攻击武器。
在于“找”和“代”之间便产生了一种变化
五千年历史多么微妙啊。
Small Time Investor,
Delete你的华文水平不在 sillyinvestor 之下啊！
幸好喝了几年洋墨水没把我的根给忘了。
我的悲哀是我的英文比华文还要好。。。
去了台湾和大陆不好意思介绍自己是华人。
我们应该是少数国家母语是第二语言吧？
五千年的文化可真妙啊！
老哥，
ReplyDelete“我”的一撇，在最外最高的地方。
外面放吹雨打，我就变了，
要努力找。
“找”是提手旁，就是要实在地做，
才能找回。
如果一次又一次，因为外在环境变了，
却不努力找，我就变成“做戏”
风雨过后，找回的那一撇，
已经不是之前的一撇，
我还是我，
不过已经不是以前的我。
找不到，怎么办。
要一个目标，要一个工具吧！
钱！不要提手旁，来个“金”字旁吧
哥就好。 不用加个老字。。。
Delete你一生下来就有目标，工具吗？
心静水则清。
你的一撇，不在最外最高的地方。
他一直在你心中。
自己的心不看，老是观旁人的心。
你就爱偷窥！
水至清则无鱼。
Hi SMOL,
ReplyDeleteNot sure why, but this post reminds me of this:
A man once said to Buddha,
"I want happiness".
Buddha replied,
"First remove "I", that's ego.
Then remove "want", that's desire.
And now all you're left with is "Happiness"".
LP,
DeleteThat's the irony of our Eastern philosophies ;)
We start with accumulating knowledge to know ourselves.
Little did we suspect the more we discover ourselves, the more we have to learn to "let go"...
Which is quite counter-intuitive!?
You think why I like to poke our friend who likes to hang on to his "training wheels" when he already knew how to ride the bike?
Can understand and empathise.
Our community is in the business of "accumulating".
We merely substitute "things" or "wants" with money.
Little lies we tell ourselves...
Hi SMOL,
DeleteReminds me of another story, and this is a real case example of how I teach.
There's a topic called binomial in A'lvl and usually students who had been through O'lvl will know that. But most if not all students would have forgotten how to do it after their O'lvls.
The first thing I do when I introduced the topic in A'lvl is to ask them if they remember how to do the binomial in O'lvl. They sheepishly said no. I said GOOD! Then they can enter the A'lvl topic with no baggage and less things for me to unwind and rewrite! LOL
So, once you learnt it, forget about it. Throw it away and re-discover it in your fresh expert-newbie eyes.
LP,
DeleteMaintaining that "fresh expert-newbie eyes" is hard!
Looking the same woman we have been living with for ages like we've seen her for the first time...
Doing a trade using the same setup for the umpteen time like its a fresh one good trade...
Appreciating our favourite meal like we have never tasted it before...
Its good to get reacquainted with our 初心 from time to time :)
temperament,
ReplyDeleteHow many people are capable or willing to explore the "truth" for ourselves?
We often like to have the "narrative" packaged for us...
Big daddy told us to...
Teacher said...
They all say...
The good book said...
How many dare to express what we really think?
SMOL
ReplyDeleteHmm... It takes time to mature and be able to think on your own. I am still learning and I don't think I can do it. I am always looking at others and over my shoulder and see if I am on the right path. Hope I don't fall over the cliff!
Blursotong King,
DeleteDifferent cultures have different ideas WHEN a person is considered an "adult" in their societies.
Some as young as 14; some 21.
Well, if you don't look where you are going, don't say fall over a cliff, less drama events may also cause some "frustrations":
1. Step on poop or gum.
2. Hit your head against a low beam.
3. Knock into a child or ah ma.
4. Missed your exit turn...
You should do well in the military, or big corporations ;)
SMOL,
DeleteNah... I am a free spirit person. Don't like to be constraint by rules and regulation. When you are working in an organization, you need to be sure what are the rules so as to be seen doing the right thing. No choice.
Blursotong King,
DeleteYour "no choice" remained me of the 7 Sages of the Bamboo Grove.
In a Confucian environment, life is not pleasant for free spirits...
I think Singapore is getting less and less Confucian by the day. Maybe.
Let's see ;)
If we want creativity and innovation, we can't be following "rules" and "precedents" all the time, can we?
三年半前，我放下一切，学着走出自己的一条路。路虽然不容易走，但是一点也不后悔。很庆幸，路上一点也不孤单。
ReplyDeleteKevin,
Delete路是辛苦一点， 但比较好玩！
同道是少了一些， 不过还好不是孤军！
:)
生命太短。 珍惜的时刻。 我觉得应该做的事情之一。 生命是不可预测的。 不要拖延。 把想法变成行动。 这是更切合实际。
ReplyDeleteBen,
Delete活在当下 ;)
SMOL,
ReplyDelete完全同意。 珍惜眼前人。