MODERN DAY ALCHEMY: CREATING MONEY FROM NOTHING
"Before you start some work, always ask yourself three questions - Why am I doing it, What the results might be and Will I be successful. Only when you think deeply and find satisfactory answers to these questions, go ahead."
- Chanakya (Ancient Indian statesman and philosopher, c.370–283 BC)
= AIM =
i) To generate a perpetual income on auto-pilot; to supplant my regular income
ii) To accumulate funds quickly
= HYPOTHESIS =
Forex trading is the preferred method. Compared to a conventional business, property, shares, etc. the benefits include:
i) high leverage (up to 3000:1 = increase profit potential);
ii) low margin ( = low capital entry requirements);
iii) high liquidity ( = enter & exit the market immediately);
iv) high volatility ( = generate more profit);
v) custom trade sizes (0.01 - 100 Lots = manage risk better);
vi) 24/5 market hours ( = more trade opportunities);
vii) limited pairs ( = fewer trade instruments to analyse);
viii) tax treatment ( = trading statements fulfill all evidence requirements);
ix) economies of scale ( = complexity will not increase with growth);
x) enormous volume ( = market manipulation more difficult);
xi) geographically unrestricted ( = trade anywhere, mobile business);
xii) global ( = business continuity unaffected by disasters, macroeconomics, etc.);
xiii) risk mitigation ( = using trading strategies eg. hedging);
xiv) automation ( = profits on auto-pilot using Expert Advisors);
xv) immediate analysis ( = accurate assessment of business position at any point in time).
= PROCEDURE =
i) use PC with ADSL internet to find an ECN/STP broker regulated by FSA or ASIC: http://www.cashbackforex.com/en-us/home.aspx#aid_4662/
ii) open a Demo account with $10,000;
iii) setup a VPS: either broker-provided, or through a reliable VPS-provider;
iv) download and install MetaTrader 4 (MT4) from broker's website onto the VPS;
v) download and install Expert Advisor (EA) onto the MT4 terminal;
vi) backtest EA using historical data in MT4's Strategy Tester;
vii) forward test EA on Demo Account for a minimum of three months;
viii) destroy useless robots that don't work properly: https://www.youtube.com/watch?v=cJaD1njC0c4
ix) pending satisfactory forward test results, fund a Real Account with at least $10,000;
x) accumulate trading profits to compound returns;
xi) regularly withdraw profits, maintaining sufficient margin at all times.
= SAFETY/RISKS =
"The Monk Moment - Many great entrepreneurs have had a moment when they have lost everything. Monks create this situation intentionally through "Vairagya" when they give up all money and possessions. Many entrepreneurs end up in the same situation unintentionally." https://www.linkedin.com/pulse/monk-moment-roger-hamilton
Forex trading involves a high degree of risk, including the loss of your entire investment:
Do not invest money you cannot afford to lose;
Do not trade unless you understand the risks;
Past performance is no guarantee of future performance;
Results may vary depending on broker, VPS provider and platform settings.
The risks include:
i) opportunity cost caused by loss of money and time invested;
ii) the EA, including trading strategy, user settings, programming quality;
iii) market behaviour of trading instruments chosen;
iv) sufficient margin for trades and drawdowns;
v) "Black Swan" events: eg. Brexit (June 2016), Swiss Franc (January 2015), GBPUSD flash crash (October 2016), etc.
vi) major News Events (NFP, FOMC, etc)
Forex is the fastest way to wealth, yet also paradoxically to penury. Before even considering VPS costs, broker commissions, latency, slippage, low liquidity, etc., the odds are already stacked against every trader:
A loss of 10% requires a gain of 11.11% to recover;
A loss of 20% requires a gain of 25% to recover;
A loss of 30% requires a gain of 42.86% to recover;
A loss of 40% requires a gain of 66.67% to recover;
A loss of 50% requires a gain of 100% to recover.
There is a plethora of Expert Advisors (EA) to consider. Essential criterion include:
i) positive user reviews: www.forexpeacearmy.com
ii) verified Real monitoring account/s with greater than three months' trade history, demonstrating consistent and reliable returns (www.my fxbook.com);
iii) prompt and helpful pre-sales / after-sales support;
iv) reasonable price and license options;
v) detailed explanation of trading operations;
vi) detailed instructions on setting-up the EA (pairs, timeframes, parameters);
vii) performance will vary depending on trading conditions (ie. VPS, broker) and EA setup (settings used);
viii) margin requirements for trading strategy employed by EA.
= CONCLUSION =
To be DETERMINED (pun intended):
* To be ascertained
* Already ASCERTAINED
* "Where there's a Will, there's a Way."
How to invest like... Michael Steinhardt (By Filipe R. Costa)
In a speech back in 2004, Steinhardt mentioned a few trading rules that he believes to be critical to achieving a successful investment performance. They can be summarised as follows:
1. Make all your mistakes early in life.
Steinhardt is very pragmatic and believes that the most important part of learning comes from one's own mistakes. Investors learn from their bad experiences and become aware of what works and what does not.
2. Always make your living doing something you enjoy.
This allows the commitment to the whole investment process to be strong, which is a requirement in a competitive world. Basically, investment is about brain and heart.
3. Be intellectually competitive.
Investment is a continuous process requiring supervision and action even before some particular asset is selected and added to a portfolio. Constant research is always required to gain an advantage over the market in order to "sense a major change coming in a situation, before anyone else". Sensing the market before all others do has always been a top priority for Steinhardt; it is this that led him to go over his firm's portfolio six times a day, and rendered him the sobriquet Captain Ahab.
4. Make good decisions even with incomplete information.
It is a good idea to gather as much information as possible before entering any single trade, but the available information will never be complete or perfect. Investors need to be trained to work on the facts, figure out what does matter, and take the right trading decisions before all others gain awareness of the situation. They then need to have the courage to put sufficient money behind the trade to achieve a meaningful outcome.
5. Always trust your intuition.
Over the years, investors develop and refine an ability to take the best decisions on their intuition. But this intuition doesn't come from a gut feeling or a hunch. Rather, it is a complex process deriving from the investor's cumulative learning over the years. It's wisdom, like that of a fruit seller guessing weights without a scale. It's an educated intuition.
6. Don't make small investments.
Amazon's stock price climbed from $38 to $820 during the last 10 years, a 2,160% rise. Had you invested $10,000 you would have a respectable $216,000 position by now. But had you invested just $100 you would have missed a potentially life-changing opportunity. After spending so much time and effort researching an asset, investors must make sure that the rewards from the money at risk are meaningful.
A few final words
Steinhardt's variant perception is a contrarian approach to the market, but one under which opposing market sentiment is insufficient. Timing is everything. Just because sentiment is very bullish, which is usually the case near market tops, it doesn't mean it can't be even more bullish the next day (the Nifty-Fifty during the 1960s is a good example of this).Trends often last longer than you can stay solvent betting against them. Investors need a strong instinct for the markets, which takes time to develop and effort to improve. Past experience trading the markets is key, as is knowledge acquired through deep research. Steinhardt doesn't believe in pre-set rules. For him, stop-loss orders, buying on weakness selling on strength breakouts and breakdowns, as well as charts and technical analysis, are all superfluous to a successful strategy. "I look at the stock. It has a fantastic chart. The chart has a base like this, and then if it goes up a little bit more, boy it is a real breakout, blah, blah, blah, blah. They all seem the same to me".
Fundamentals and market timing is what matters the most. And, when the right opportunity surges, investors should embrace it without fear, being flexible enough to be net short as easily as they can be net long, and having the boldness to take on large meaningful positions.
. M . O . T . I . V . A . T . I . O . N .
^ "Matthew you are poor man! The worst trader I know! Probably the worst trader in the world! Why do you comment free products that you are not interest in and you do not know nothing about these products, you financial moron! Just for points? It is your new way of making money? Anyone who lost less money than you is better trader than you!!! Even koala bear LMAO!"
- Krzysztof Lorenc (a typical hater) https://www.youtube.com/watch?v=izLDDBtzmkc
^ "You were greedy. You should have listened to me all those years ago (ten years, 2008?) and invested in houses. Houses were $300 K, now they are over $1 million. You could have had a few houses by now. The rent helps pay them off. You could have been retired by 40 years old (currently 35). You should cut your losses now and stop your gambling. Take out whatever money you have left and invest in gold. Fiat currency is going to be worthless. We are going to see a depression worse than 1930. You have wasted all your money. You wouldn't have to keep working three jobs if you had listened to me back then. You better start saving or else if you lose your job you will have nothing. What will happen if you can't work? If you fall sick? You won't be able to afford medical expenses, and you won't be able to afford rent. You will be out on the streets (begging). Start putting some money away in a savings account. You're lucky you're not in jail for losing all that money."
- Kathy Morel (another typical hater, still working at 50)
^ "Try and leave this world a little better than you found it, and when your turn comes to die, you can die happy in feeling that at any rate, you have not wasted your time but have done your best."
- Robert Baden-Powell
^ "Out of the 241 trades, 16 of them were responsible for ALL of the profit. Most people in this world can't handle it. Yet, it is the only way I have ever seen anyone make money trading. Ever. I was on Wall Street for 23 years. All of the successful fund managers will have long losing streaks, sometimes lasting 6 months to a year. And then... boom! They let their winners run and they wipe out all of their losses. It is how trading works."
- Mark Shawzin https://thepatterntrader.com/the-pattern-trader-bundle-35/
^ “If all you have is money, you are among the poorest people in the world. You only become truly rich the day you possess something that money cannot buy.”
- Matshona Dhliwayo
^ “While wealth will be a capricious shadow to our lives, true riches lie in strength of character; that is infinitely harder to accumulate. It is the only gold that enhances our potential in terms of what we can offer the world.”
- Salma Farook
^ "Do or do not. There is no try."
^ "Go hard or go home."
^ "Come what may, all bad fortune is to be conquered by endurance."
- Virgil (Roman Poet 70-19 BC)
^ "The difference between the impossible and the possible lies in a man's determination."
- Tommy Lasorda (manager, Los Angeles Dodgers, 1977-1996)
^ "It always seems impossible until it's done."
- Nelson Mandela (South African President, 1994-1999)
^ "Men succeed when they realize that their failures are the preparation for their victories."
- Ralph Waldo Emerson (American poet)
^ "Your willingness to fail is what will let you succeed."
- Vinod Khosla (Indian entrepreneur)
^ "The test is to recognize the mistake, admit it and correct it. To have tried to do something and failed is vastly better than to have tried to do nothing and succeeded."
- Dr. Dale E. Turner
^ "Failure should be our teacher, not our undertaker. Failure is delay, not defeat. It is a temporary detour, not a dead end. Failure is something we can avoid only by saying nothing, doing nothing, and being nothing."
- Dr. Denis Waitley (motivational speaker)
^ "Happiness is not in happiness, but only in achieving it."
- Fyodor Dostoevsky (Russian philosophor)
^ "The difference between an experienced trader and a beginner is that the former has lost more money."
^ "All unsustainable moves are corrected."
- Scott Barkley (forex trainer)
^ "What separates those who go under and those who rise above adversity is the strength of their will and their hunger for power."
- 50 Cent (hip hop artist)
^ "We should not fret for what is past, nor should we be anxious about the future; men of discernment deal only with the present moment."
- Chanakya (Ancient Indian statesman and philosopher, c.370–283 BC)
^ "...the object of fear is fear itself. "Nothing," says Seneca, "is terrible in things except fear itself." And Epictetus says, "For it is not death or hardship that is a fearful thing, but the fear of death and hardship." Our anxiety puts frightening masks over all men and things. If we strip them of these masks their own countenance appears and the fear they produce disappears. This is true even of death. Since every day a little of our life is taken from us - since we are dying every day - the final hour when we cease to exist does not of itself bring death; it merely completes the death process. The horrors connected with it are a matter of imagination. They vanish when the mask is taken from the image of death."
- The Courage To Be, Paul Tillich (p.19)
^ 'One day when Ganid asked Jesus why he had not devoted himself to the work of a public teacher, he said: “My son, everything must await the coming of its time. You are born into the world, but no amount of anxiety and no manifestation of impatience will help you to grow up. You must, in all such matters, wait upon time. Time alone will ripen the green fruit upon the tree. Season follows season and sundown follows sunrise only with the passing of time. I am now on the way to Rome with you and your father, and that is sufficient for today. My tomorrow is wholly in the hands of my Father in heaven.” And then he told Ganid the story of Moses and the forty years of watchful waiting and continued preparation.'
- The Urantia Book (130:5.3)
^ ' “If the faith of the Most High has entered your heart, then shall you abide free from fear throughout all the days of your life. Fret not yourself because of the prosperity of the ungodly; fear not those who plot evil; let the soul turn away from sin and put your whole trust in the God of salvation. The weary soul of the wandering mortal finds eternal rest in the arms of the Most High; the wise man hungers for the divine embrace; the earth child longs for the security of the arms of the Universal Father. The noble man seeks for that high estate wherein the soul of the mortal blends with the spirit of the Supreme. God is just: What fruit we receive not from our plantings in this world we shall receive in the next.” '
- the Cynics, The Urantia Book (131:1.9)
^ "Much of man's sorrow is born of the disappointment of his ambitions and the wounding of his pride. Although men owe a duty to themselves to make the best of their lives on earth, having thus sincerely exerted themselves, they should cheerfully accept their lot and exercise ingenuity in making the most of that which has fallen to their hands."
- Jesus, The Urantia Book (149:5.3)
^ 'But life will become a burden of existence unless you learn how to fail gracefully. There is an art in defeat which noble souls always acquire; you must know how to lose cheerfully; you must be fearless of disappointment. Never hesitate to admit failure. Make no attempt to hide failure under deceptive smiles and beaming optimism. It sounds well always to claim success, but the end results are appalling. Such a technique leads directly to the creation of a world of unreality and to the inevitable crash of ultimate disillusionment.'
- Rodan of Alexandria (philosopher) The Urantia Book (160:4.13)
^ 'To ask is the first important step. To continue to ask never allows the process to move beyond the asking stage. First ask, assume the answer is on its way and then continue to express appreciation that it is happening in its own perfect wisdom and timing. That “wisdom and timing” is greatly influenced by the one asking and how well that awareness is able to follow through with the two remaining steps after the initial asking. This is often called prayer. Nothing can happen until there is first asking. Then the next two steps, assuming it is happening (continued focus of intent) and expression of appreciation (allowance) controls the manifestation. It is that simple! A few additional details are helpful. Ask within a framework that allows what might be called “Divine Intelligence” or thought thinking to fill in the details. Doubt destroys results; trust insures them.'
- Vol III: Becoming (http://www.nohoax.com/media/Becoming.pdf )
"A hero isn't measured by the size of his strength, but by the strength of his heart."
So said Zeus to his son Hercules. Philoctetes, trainer of the greatest heroes of ancient Greece, had his own advice for the would-be hero in the form of his 101 patented Hero Rules, presented in their entirety courtesy of Whatsits Galore. Now you, too, can benefit from Phil's decades of experience as you go from zero to hero with this handy guide. Yes, indeed.
I Everybody needs a hero.
II Nobody cares about a zero.
III Use your head.
IV Your trainer is always right.
V Heroes don't make excuses.
VI The bigger they are, the harder they hit.
VII When rescuing a damsel, always handle with care.
VIII If it was easy, everybody would be doing it.
IX A good left is always right.
X Watch your footwork.
XI Heroes are never mediocre.
XII A hero is known by his enemies.
XIII Some are born heroes, some achieve hero status, and some have heroism thrust upon them.
XIV Never hit below the belt.
XV Don't turn your back on your foe.
XVI A hero is only as good as his weapon.
XVII Don't be a sucker for a pretty face.
XVIII Learn from your mistakes.
XIX Keep circling.
XX The greater the risk, the greater the prize.
XXI Always take the full count.
XXII Control your strength.
XXIII The road to hero status is paved with "also-ran"s.
XXIV Don't get cocky.
XXV Never look back.
XXVI Your shield is your best friend.
XXVII Don't rest on your laurels.
XXVIII Keep your eyes on the prize.
XXIX Beware of Greeks bearing gifts.
XXX Analyze the situation.
XXXI Failure is not an option.
XXXII Never hit a man when he's down.
XXXIII Second place is the first loser.
XXXIV He who fights and runs away is no pupil of mine!
XXXV A hero who won't be beaten can't be beaten.
XXXVI Heroes take chances.
XXXVII Don't start anything you can't finish.
XXXVIII No knot unties itself.
XL Being a hero is its own reward.
XLI Don't panic.
XLII The best defense is a good offense.
XLIII Not every damsel is in distress.
XLV Sheep get sheared.
XLVI Limitations are the shakels we bind to ourselves.
XLVII Every enemy has a weak spot.
XLVIII There is no "try."
XLIX Face your fears.
L A quitter never wins and a winner never quits.
LI Act, don't react.
LII Expect the unexpected.
LIII Never do anything halfway.
LIV Lead with your left.
LV No pain, no gain.
LVI Watch your back.
LVII Be prepared.
LVIII If you look like a hero, you'll feel like a hero.
LVIX Speak softly.
LX Carry a big sword.
LXI The greater your agility the greater your ability.
LXII With great power comes great responsibility.
LXIII A hero is always on duty.
LXIV Keep both eyes open when you shoot; you'll see twice as well.
LXV Compromise is for suckers.
LXVI It's either education or elimination.
LXVII Play by the rules.
LXVIII I make the rules.
LXIX Just do it!
LXX Cheaters never prosper.
LXXI Put the past behind you.
LXXII Outwit, outfight, outlast.
LXXIII A hero is more than a sandwich.
LXXIV Don't barge in without thinking.
LXXV Don't stop for applause.
LXXVI The difference between a champ and a chump is "u."
LXXVII Never say never.
LXXVIII Pressure makes diamonds.
LXXIX There's always a bigger fish.
LXXX Never take your eyes off your opponent.
LXXXI A hero never forgets his public.
LXXXII You gotta stay focused.
LXXXIII It's not about the trophies.
LXXXIV You can't be a hero on an empty stomach.
LXXXV Giving up is for rookies.
LXXXVI The harder to get, the better to have.
LXXXVII Never let 'em see you sweat.
LXXXVIII Keep pushing that envelope.
LXXXIX Heroes are made, not born.
XC Nice guys finish last.
XCI No guts, no glory.
XCII The three most important elements are training, training, and training.
XCIII Stop, look, and listen.
XCIV When the going gets tough, the tough get going.
XCVII A hero is just a regular guy with the right coach.
XCVIII Be fast or be last.
XCIX There are no shortcuts.
C You're always in training.
CI Go the distance.
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I will prove a person can make a comeback after losing a fortune...
- 2003-2018 = 15 years of working at a JOB (Just Over Broke) (ten years at three JOBs)
- Losing everything, from $50,000+ Investment Seminars, to $10,000 Lay Betting Programs, to $60,000 on football (Gold Coast Suns vs. Port Adelaide), to $500,000+ in forex, and $120,000 HYIP frauds.