M. Nack’s Blog

We were in Salt Lake City this past week learning how to trade stocks. We have been learning all about option strategies, how to read charts, technical analysis, price patterns, etc… We’ve been at it a little over a year now. The three days in Utah was the culmination of all that we’ve learned so far. One of the instructors brought up Heisenberg’s Uncertainty Principle and the whole weird thing about quarks - how we change their behavior by observing them. He suggested that perhaps we do the same thing with the stock market. Quarks notwithstanding, trading in the market all boils down to a few key concepts. All the technical analysis in the world cannot predict the future. In other words, there is no real way to know what the market is going to do. The sooner you get over having any expectation of being able to understand or forecast what is going to happen, the better off you’ll be. It really boils down to educated gambling.

The golden rule of trading was developed back in the early 1900’s by a fellow who actually had his best day in the market the day it crashed in Oct, 1929. His rule is: “Let your winners run and cut your losers short.” Period. End of story. If you can fully integrate that - if all your character flaws and personality weaknesses allow you to do that - you will do well. So, as with anything in life, it’s a growth experience; a refining fire that burns away all the impurities in your personality. A mentor of mine was told by Jim Rohn, “Become a millionaire: not for what it will give you, but for what it will make of you.” Robert Kiyosaki (of “Rich Dad, Poor Dad” notoriety) says that we will have to become rich in order to retire. Now there’s a sobering thought!

ALL THINGS WITH EXUBERANCE!

mary!

The press made a big deal out of Mardi Gras in New Orleans this year - how important it is to show N’awlins bouncing back, etc… It seems as if everyone wanted to get in on the “solidarity” thing by having a Mardi Gras party. I attended two separate events this past week with Mardi Gras themes. One was promoted as a Fat Tuesday celebration - even though it was actually a “Good Neighbors” awards ceremony. The second was a “schmooze and booze” thing and was held the Thursday FOLLOWING Ash Wedsnesday. I was a bit put off by that: it misses the whole (original) intention of what Fat Tuesday is all about. Ash Wednesday is the only day in the liturgical calendar that the vestments are black - to remind us of our death. (Some people would be surprised to learn that the color for Good Friday is purple. Ash Wednesday is considered by the Christian church to be more solemn.) “Remember, man, that thou art dust and to dust thou shall return.” Who wants to be reminded of that?  Fat Tuesday is about forgetting that for a little while before descending into Lent. “Laissez les bon temps roulez” and all that…

I came of age during the time when Carlos Casteneda first began publishing his drug exploits as an apprentice of a mysterious sorcerer named Don Juan. The books had a huge impact on me. Carlos Casteneda was to me what “Zen and the Art of Motorcyle Repair” was to many of my peers. I clearly remember an episode in which Don Juan instructs Carlitos that Death is our constant companion -always just behind us and always just out of sight. The wise person learns to think of Death as an ally - one that saves us from self-importance and pettiness. If we remember that Death is always just over our shoulder, we remember to live each day - each moment - as if it were our last. If we can do that (and who can, really?), when Death does finally overtake us, we will have no regrets about our life.

ALL THINGS WITH EXUBERANCE!

mary!