"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder
Who is Dr Alexander Elder?
Then what should I do?
First thing first, hang my EGO at the door as I need to be humble in the Market, put in lots of effort to learn, and ever learning, control risks, practise money management, and formulate my own strategies to sustain and measure my investment success across multiple years, and over bull and bear market conditions.
Who is next?
"If I have seen further it is by standing on the shoulders of giants."
- Isaac Newton, letter to Robert Hooke, 1676
Who is Isaac Newton?
So I will keep searching for Giants, and then stood on their shoulders to see further.
Long ago, Sir Isaac Newton gave us three laws of motion, which were the work of genius. But Sir Isaac's talents didn't extend to investing: He lost a bundle in the South Sea Bubble, explaining later, 'I can calculate the movement of the stars, but not the madness of men.' If he had not been traumatized by this loss, Sir Isaac might well have gone on to discover the Fourth Law of Motion: For investors as a whole, returns decrease as motion increases.
~Warren Buffett
If genius like Newton cannot understand the madness of men in the Market, don't think I should waste my effort in trying to understand it. I have learnt to accept the madness of the men in the Market, accept the possible losses, and move on; but I don't want to land myself here in over-thinking. Don't think too much.
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