The Self-Cultivation of Leeks (4)
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翻译：John Gordan （王渊源，微信公共账号：清晨朗读会）
3. “Leeks” only have a future if they mend the pen after having lost sheep…
I guess that you’re like me, and you didn’t have someone to share those two important sentences with you when you entered the market. So, your lot was just like mine, and after a short period of excitement you found yourself in an awkward situation that it seemed would forever be difficult to reverse.
Trading is one of the most natural and common behaviors in human society. Unfortunately — and I don’t know why — almost all countries in the world take it as a given that it isn’t a required course in general and higher education. So generation after generation are fated to mend the pen after having lost sheep.
Sadly, lots of “leeks” only have one sheep, and they never had a pen, so after their sheep was lost it was lost, and they never had a chance to fix the pen…
So you were like me, and as soon as you entered the market you made a big mistake. You didn’t know that the bull market was about to end, and you excitedly “bought, bought, bought” without any regard for the fact that the price was pumped with the fattening hormones of the bull market. You saw the profits in front of you and it even seemed like your IQ was soaring… And then, after that, you were stuck… What should you do?
You look all around, and you understand. There is a mistake even more horrible than “buy, buy, buy, as soon as you enter the market”. What is it? It’s this:
Spend all of your money as soon as you enter the market!
Of course, there is something more horrible, which is to “spend all of the money you borrowed as soon as you enter the market!” The poorer someone is, the stronger their desire to make money, so they often don’t hesitate to make reckless moves. In this way many novices dig holes for themselves and put on the noose. They not only spend all of the little money they have in the market, they also “leverage”, and borrow money to “invest”… And the result? It’s crushing.
If your luck is good enough, then you’ll be like me and have a chance to redeem yourself:
Even though you’re stuck, you still have money that you can slowly spend, so later, in a long bear market, you still have a chance to reduce your costs and build up a position…
So, “mending the pen after after the sheep is lost” has some prerequisites:
- You didn’t only have the sheep that you lost;
- It’s best if you have a lot more sheep aside from that one;
- Because you have a lot of sheep, you’ve made a “sheep pen” in the past;
- So, even though the “sheep is lost”, you still have a chance to “mend the pen”;
- So, once the “pen” is mended, you can manage more sheep;
- So, if in the beginning you lose one or two sheep, in the end it seems you don’t really care…
So, what’s the most important thing for “leeks” who have “mended the pen after losing the sheep” to do? It’s quite simple:
- If they still have money, slowly build their position…
- If they don’t have enough money, work as hard as they can to earn money outside of the market…