Some random things about investment

Some random things I keep about investment. From a retail investor perspective.

1. Invest with a system. This is why an investor can success in this journey. It is damn hard to build one, but I know no person thinks about investment setiously and say it is an easy game.

2. Cut loss short. We are wrong most of the time. I want to make sure I’m still alive when a home-run opportunity exists.

3. The target should not be money, but it is a well executed investment. Back to [1], when the target is money, then the deal is case by case. When the target is a well executed trade, then it is a systematic approach.

4. Invest in myself. I want to be a shark when the opportunity comes. I want to master the game and play the deals nicely.

5. Sometimes, it’s a lonely business. And you can only trust your homework. Remember the system. Unless one talks to you by the same language (i.e. the system), or the talk is only “FYI”.

6. Risk management is key. Risk consideration is what seperates an experienced one with a novice. Novices think only about the upside. Experienced ones are afraid of the downside.

7. There are two elements in risk management: (1) magnitude of losing deals and (2) frequency of losing deals. An investor will typically have to fix one element and control the other.

8. Investment is a damn hard business. I cant stress this enough.

9. Find what works and stick with it. The markets are forests with loaded of traps. Most of my lost money is fee for experiments. I can play around. But finally I have to choose a wife. Or I must, just for survival.

10. But it is still damn hard to choose a wife. Re-read [8] if anyone wants to jump into this business.

11. Keep an investment diary. And do a lot of reflections. It’s difficult to never repeat a learned mistake, but at least I will keep working with the lessons.

12. Emotions are what kill an investor. Typically an investor just shoots herself all of the time.

13. Prepare for unthinkables. Make sure to have a plan if the markets crash in the middle of the night by news from Mars.

14. Some time the cut will be very painful. And an investor will typically rationalize the losing positions. But remember one of the largest right of an investor is to walk away.

15. Money from an openning position or money from a closed position is just the same. Money is money.

16. Be brave. One has to make a move when time comes. Gain what should be gained. Keep what should be kept. And cut what should be cut. It needs courage to deal with both of the situation: winning and losing. The world belongs to those who dare to do things.

And this is my first post from iPhone.

Tri Ton

Businessperson with private equity expertise. Interested in strategy and investment.

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