Struggle due to creativity
My latest book “Bold Stock Trading: Basics and Practice” is already on sale at bookstores nationwide. If you’d like to hold it in your hands before buying, please visit a nearby large bookstore.
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Series “The Heart of the Market, The Essence of Trading” No. 28
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I think the first person to try sea urchin is amazing. It looks poisonous after all.
About forty years ago, I heard about mayonnaise on okonomiyaki, and I thought, really? But surprisingly tasty.
When you think you should try anything, I ended up in the hospital with a mushroom in the park poisoning me!
Is it difficult to expand your world…
I will quote from the book ‘New Edition of the Zhongyuan Line Position Method’.
In 1974, after I had left managing a product company and could devote myself to my own trading, I had a group of about ten people participate to redo the final statistics.
And then, I determined the “main text” of ‘Zhongyuan Line Position Method… First Edition,’ but even then, there were plenty of improvement ideas proposed.
When others tested them, the flaws stood out. In some cases they were good, in others they resulted in bad outcomes. Yet, taken all together,
1. It is better not to improve
2. The results are almost the same, only the regulations become more complex
3. Considering unforeseen events, it is not wise to revise easily
This often led to that conclusion.
(From ‘New Edition of Zhongyuan Line Position Method,’ Part Four “Practice and Experiment”)
Even a functioning rule sometimes lacks something in certain cases, or becomes completely opposite…
If you rely on “mechanical judgment” to avoid losses caused by human variance, then the human creativity will not stay quiet—this is the classic “market truism,” isn’t it.
In the highly creative “discretionary trading,” even if you achieve “zero drift,” there will still be moments like “this is the breaking point, and then it’s over there again.”
Because my selection pool widened, I thought “obvious from this trend: I should target the late movers,” and bought promising laggards, only to find they did not lag at all and stayed late…
Even when I trust my experience that “this rise is big,” the moment I jump in, most likely the stock is already at its peak, while second or third choices rise rapidly…
Isn’t that Murphy’s Law (laughs)?
When you think about which direction to take, often the simplest approach, even if it feels unsatisfying, is the stress-free correct answer.
Lacking ingenuity, seeming silly, hard to accept… our creatively rich brains tend to think this way, but considering that work we continue to do steadily is surprisingly straightforward, it can be said that a simple, clear standard for judging trading—the money matter—is appropriate.
