Talents and skills are both cardinal in the trading scene. Although having an element of good luck is a bonus, we cannot depend solely on luck alone. Don't forget, luck and risk are doppelgangers. The difficulty in identifying what is luck, what is skill and what is risk is one of the biggest problems we face when trying to manage money. Countless fortunes (and failures) owe their outcome to leverage. The line between 'inspiringly bold' and 'foolishly reckless' can be a millimeter thick and only visible with hindsight.
Having talents and skills is crucial in creating a workable and repetitive system that compounds and grows wealth. And it is with intelligence, talent, wit, resilience, great analysis , tenacity, proper solid planning and the ability to remain level-headed in all situations that one is able to achieve that. Good investing isn't just about earning the highest returns because the highest returns tend to be one-off hits that can't be repeated. Investing is about earning pretty good returns that can be repeated for the longest period of time, and that's when compounding runs wild. And devising such a system definitely requires intelligence, talent and skills. Hence I cannot negate the importance of them both in the trading scene.
Trading is not sheer luck and waiting for destiny to happen. I believe in seizing the day and working on my portfolio, rather than buying into 'useless' endowment plans and have fund managers manage my money via ETFs. Not to offend anyone, but these are just not my cup of tea. I'd rather have the freedom to manage my own portfolio.
And let me give a little credit to planning too.
Proper solid planning is cardinal to the whole trading scene. Why? Simply put; as Morgan Housel wrote in the Psychology of Money, 'The most important part of every plan is to plan on the plan not going according to plan. A plan is only useful if it survives reality.' How is one supposed to plan without talents, skills, intelligence and wit?
Let that sink in.
@TigerStars @Tiger_comments @TigerCommunity @MillionaireTiger @TigerGPT
Comments