Part 4: Strategy or How the heck do I get to Financial Freedom?
4.5 Use with the Nature of the Market to your advantage
What are the characteristics of the Market that you can use to define your Investing Strategy?
And as it is nicely put in the Pirates of the Caribbeans about the code of Pirates, “these are not really laws but more like the guiding principles”. And they are common sensical really. Just like the seven commandments in the Ten Commandments. The first three are really the hopes of a God who sounds more like a Jealous Partner.
Your strategy to reach your financial goals is to earn inflation-beating returns for a long-long time with the help of Mr. Market. How? By following some commonsensical guidelines and not trying to outsmart Mr. Market or by trying to know him enough to predict his behaviours. Here are the important characteristics of Mr. Market and the guidelines based on it that define your strategy.
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Mr. Market keeps swinging between two extremes like a pendulum but you cannot predict when the pendulum will change directions or how far it will go in one direction. However, the further it goes in one direction the greater the...........Read More
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