PARADOXES-Understand paradoxes and win in the markets

Paradox: The Story Behind The Story

First Paradox of life; thou shall get the exact opposite of what thou sorely seeks

The principle here is very simple, the harder you try for something, the more you are willing to risk, the more bullheaded 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. Learn how to build wealth in the markets as opposed to blindly hoping to hit a home a run.

2nd Paradox of Life: The harder you try for something the more likely you are to fail.

There is a difference between being determined to achieve something and simply being like a bulldog who won’t give up. Lots of effort does not necessarily equate to possible success. It’s learning from your mistakes, taking time out and then trying again but with a different approach that usually results in success.

This 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 a 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 don’t then you lost everything.

The paradox of life 3

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.

This is 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 can’t afford the holiday, wait to see how you feel a few months later when you have lost almost everything. Never 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 clearly.

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.This is 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 can’t afford the holiday, wait to see how you feel a few months later when you have lost almost everything. Never 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 clearly.

The paradox of life 4

Desperate minds lead to dangerous mistakes and critical mistakes lead to bankruptcy or worse.

Being desperate goes against all the principles of investing. If you are not familiar with the principle of Contrarian investing, it’s time you familiarise yourself with it. However, don’t mistake a contrarian for a fashion contrarian; there is a vast difference between the two

Paradox of life 5

Never get into something with the thought “I don’t have enough money or time to put into this project”

For if you do your wishes will come true.If you think you don’t have enough money or time, then stay the hell out till you have enough of both, for if you don’t, you will have a lot more time on your hand and a lot less money. Lots of time and no money are the ideal combinations for depression.

Paradox of life 5;

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 the future.

This is perhaps the most important if not the 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 carefully 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 analyse their failures they would find a solution to their problems but they don’t 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.

Conclusion

Paradoxes, 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 stupidity. Don’t fight the trend and never follow the masses. Mass Psychology states that the masses are born to lose.

Clinging to hope that a certain sector will go up because all the fundamentals are perfect and ignoring the trend principle; the end result is that the individuals usually loses everything, and when they bail out of that sector or position the sector takes off like a rocket.

Being a perpetual bull or bear is a guaranteed way to make sure that the only success you will encounter is in finding an excellent prime resting spot (as in 6 feet under the ground)

Looking for or chasing happiness, net results misery and depression. Happiness is right there you don’t have to find it, you just have to learn how to appreciate the small things in life.

So make sure you learn how to take it easy and live each day as if it’s your last because it might 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 don’t ever forget that the most important things in life are free.

‘ 2004 Sol Palha

Tactical Investor

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