Palha of TacticalInvestor.com, John Tyler of
Trader007.com, and Janice Dorn, Ph.D. of
October 17, 2004
The way of paradoxes is the way of
truth. To test Reality we must see it on the tightrope.
When the Verities become acrobats we can judge them.
Oscar Wilde 1856-1900, British Author, Wit
Thou shall get the exact opposite of what thou sorely
here is very simple, the harder you try for something the
more you are willing to risk, the more bull headed you
become and slowly but surely logic and reason are replaced
with faith, and stubbornness; two of the most deadly
sentiments to have when it comes to investments. Whenever
you go after something do so in a nonchalant manner, do not
desperately seek to win, because desperation blinds and when
one is blind they only see what they want to see.
The harder you try for something the more likely you
are to fail. There is difference between being determined to
achieve something and simply being like a bulldog who wont
give up. Lots of effort does not necessarily equate to
possible success. Itís learning from your mistakes, taking
time out and then trying again but with a different approach
that usually results in success.
law is very similar to the above low. Over efforting does
not bring about success. In fact if you try to squeeze water
out of rock, the only thing you end up with is a massive
headache and lots of dust. So do not try to create
opportunities, instead look for them and then use the trend
is your friend principle. The most important thing to do is
to keep a journal of all your failures and mistakes, forget
your successes. Most individuals have an incredible capacity
for forgetting their mistakes and failures, however they
never seem to forget their success (perhaps because they
have had so few and want to hide behind something). If you
forget your failures and mistakes, you will be doomed to
repeat them and suffer twice as much in the future. Make
sure you learn from them, if you learn from them then you
lost nothing, if you donít then you lost everything.
When you think you are desperate, take time out, for
the little you have will be taken away from you to teach you
the true meaning of the word desperate.
perhaps one of the most dangerous diseases to have. When you
start feeling desperate, stop doing everything and take a
vacation. If you think you canít afford the vacation, wait
to see how you feel a few months later when you have lost
almost everything. Never ever do anything when you are
feeling desperate. You need to take time out and let your
body and mind recover so that you can assess the situation
minds lead to dangerous mistakes and dangerous mistakes lead
Never get into something with the thought that I
donít have enough money or time to put into this project.
For if you do your wishes will come true.
If you think
you donít have enough money or time, then stay the hell out
till you have enough of both, for if you donít you will
definitely have a lot more time on your hand and a lot less
money. Lots of time and no money are the ideal combination
Always look at failure as bringing you one step
closer to success. The law of paradoxes states that without
failure there can be no success. Failure is an absolute and
necessary ingredient for those who chose to be successful.
Therefore you should embrace your failures with equal gusto
as you do with your wins. Make sure you learn from each
failure otherwise you will be punished twice as severely in
perhaps the most important if not thee most important rule.
If you look at failures as a waste of time, you have learnt
absolutely nothing and you deserve all the pain and more you
will get in the future. Make sure that you listen closely to
what each failure is telling you. Failure brings you one
step closer to success because it lets you know exactly
where you are lacking. Most people tend to look at failures
in their lives with dread and the reason is simple, they
actually want to lose. If they took the time to sit and
analyze their failures they would find a solution to their
problems but they donít and so they deserve every single bit
of punishment life hands out to them. In addition never ever
try to help a failure unless he/she wants to help
himself/herself first. Trying to help them if they do not
have this desire, will result in tremendous pain, loss and
most likely the individual you are trying to help will blame
you for all the problems in their life.
if understood, can be used to improve our lives in every
single aspect. All one has to do is learn to take things as
they come rather than forcing a situation. Examples of
paradoxes in action:
Telling the market what to do and then losing your shirt
and your pants as results of your stubbornness and
Clinging to hope that a certain sector will go up
because all the fundamentals are prefect and ignoring
the trend principle; end result complete loss and when
you close out your positions this sector takes off like
a perpetual bull or bear is a guaranteed way to make
sure that the only success you will encounter is in
finding a nice prime resting spot (as in 6 feet under
Looking for or chasing happiness, net results misery and
depression. Happiness is right there you donít have to
find it, you just have to learn how to appreciate the
small things in life.
sure you learn how to take it easy and live each day as if
its your last because it might actually be your last. Most
important of all do not chase investments, or try to force
an investment to take off. Study the trend and then take
your position and wait for the rewards to come in. while
waiting donít ever forget that the most important things in
life are really free.
© 2004 Sol Palha
by John Tyler CEO
think that this ďLaw of ParadoxesĒ is for eggheads, think
again. It could mean your life!
has just been diagnosed with a highly malignant cancer. He
knows that the treatment, even if successful, has many
adverse side effects. His business has been successful and
based on 110% effort, will power and pure doggedness. Hence
he believes that heíll beat this by application of the same
This is the
ultimate Paradox Law: our apparent success can kill us.
statistical proof of this Law in action in the area of
health and disease. I first became aware of this in the
1980s when we were looking at the mortality rates from a
specific type of malignant tumour. The surprising finding
was that the survival time related to the time of diagnosis
and not the size of the tumour! This was unable to be
explained even by the adverse effect of treatment. Now we
know however, that the mental effort of the unfortunate
victims acted to ensure their own eventual death, no matter
how advanced the tumour was at the time. These results are
now masked by more radical life extending therapies, but it
maybe that the window has just been opened wider.
The Law of
Paradox here is that focusing on the disease, tumour or
whatever, actually strengthens its hold over the victim!
right ways to think, as well as to act, for both health and
trading are concerned. All our efforts can be tainted by an
ignorant approach. Donít become another statistic proving
the effectiveness of the Laws of Paradox.
yesterday of my disease,
I died last night of my physicianĒ
M. Prior 1664-1721:The Remedy worse than DiseaseĒ
The Scorpion and the Frog
by Janice Dorn, M.D., Ph.D.
A scorpion and a frog meet on
the bank of a stream and the
scorpion asks the frog to carry him across on its back. The
frog asks, "How do I know you won't sting me?" The scorpion
says, "Because if I do, I will die too."
The frog is satisfied, and they set out, but in midstream,
the scorpion stings the frog. The frog feels the onset of
paralysis and starts to sink, knowing they both will drown,
but has just enough time to gasp "Why?"
Replies the scorpion: "Its my nature..."
No matter who
you are, how intelligent or how much education you have, if
you keep doing the same thing over and over again, expecting
different results, you are suffering from the most insidious
form of insanity. This is self-delusion of the highest
when I first started to trade, I was so optimistic that I
could make money consistently. I was smart, more educated
than almost anyone I knew, a successful physician,
and always had been able to study hard and master anything I
put my mind to. I could do it and nothing was going to stop
me. I would work longer and more intensely than anyone else,
and show wonderful profits month after month.
Little did I
know what I was facing, and that I was about to come head
on with the most challenging task of my lifetime. Simple,
maybe.... but not easy. Not easy at all. After a few months,
I found myself dancing as fast as I could; yet running on a
treadmill going nowhere and suffering from vertigo, headache
and a severe case of tick-itis. I studied and read
everything I could lay my hands on, subscribed to service
after service looking for the Holy Grail and struggling to
make consistently successful trades. Why couldn't I do it?
What was wrong?
Is this so difficult? What about all the people who have
returns of greater than 80% a years? They couldn't be
exaggerating, could they? After all, it's in print and on a
heavily subscribed website, so it must be true. Mustn't it?
So I studied more, subscribed to more services, learned new
indicators, bought books, joined some chat rooms and
saturated myself with information. This produced more
vertigo, headache and sleep deprivation. I was on total
information overload. I started sleeping sitting up so that
I would not sleep too deeply and could awaken more easily at
4:30AM (having gone to sleep at around 1:30 AM) in order to
study and watch the markets before they opened at 6:30 AM.
I was in total immersion, so why couldn't I
make consistently successful trades? I became paranoid,
thinking it was a kind of conspiracy since every time I took
a position it went against me. I knew the stop and
was stopped out in my minds, but we didn't take the stops
because I had faith that the position would come back. It
was some kind of a misunderstanding or misinterpretation by
the market that was responsible for the price spiraling
That's it. Average down and keep averaging down and
eventually, I will get it right. Eventually, the price will
come back up and I will be justified. Why isn't the price
coming back? I know it has to. After all, I studied it,
charted it, listened to the gurus, read everything on every
bulletin board, and it absolutely HAS to come back. Oh, that
news that just came out.... Ugh! Must be false or overstated
because there is no reason that the stock should be selling
off like that.
I know it is coming back, so I will buy more. Wow!! Look at
the size of the position now. Hmmmm. I better kick it up a
notch and start participating in every message board and
study every report and watch every tick every day for signs
that life is returning and I can get back from underwater.
Most of you know how this feels. I do. I have been there,
lived it, and suffered losses from it. Life was miserable
this way. I became depressed and irritable. I walled myself
off from the rest of the world just trying to figure out
what to do. I had dug a really deep hole and the only way
out was to sell and take the losses. OR- wait and be in
agony day after day, watching my account and my self-esteem
(what was left of it) erode like sifting sands.
I tried too
hard, studied too much, and pushed myself to the point of
both physical and mental exhaustion. Why? Why did I not
honor the stop, continue to hold on and even average down? I
had to figuratively kill the frog and kill myself in the
process. In order to be reborn, I had to destroy the
internal self-defeating programming and start all over
again. I had to step back, look at what I had done with a
sharp and penetrating glare in the bright light of day. I
decided to take the loss, to stop trading for a while, to
take a vacation and center myself. My health returned. The
dizziness and headache went away. I didn't care so much
about watching the flickering ticks (so, at least, I was in
remission from a severe case of tick-itis).
It was not the
market, the charts, the software, the gurus or
anyone/anything else but I. I was my worst enemy. Nothing
was going to change until I got right with myself.
The most exquisite paradox is that as
soon as you give it all up, you can have it all.
As long as you want power, you can't have it. The minute you
don't want power,
you'll have more than you ever dreamed possible...
© 2004 Janice Dorn, M.D., Ph.D.