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Yoda Quote #7 “Size Matters Not”

This is a continuation of the Trading Words of Wisdom By Yoda, for Quote #8 click here.

7. “Judge me by my size, do you?” The Empire Strikes Back

Yoda may not look like a formidable foe, but that’s a little green guy you do not want to mess with! This quote is from when Yoda explains to Luke Skywalker that while he might be small, he is an ally to the Force-which is strong and flows through everything. The Force is power, and when a Jedi can feel the Force surrounding them and connecting them to something as trivial as the trees in the forest or the rocks resting in the swamp, then they become powerful as well.

We shouldn’t disregard size, but we definitely shouldn’t judge or be intimidated by it. We should be aware of how things are connected and influence each other. There might be some who throw large amounts of money into the market, gambling that they’ll strike it big. Some might boast of large position sizes, but judge not by their size! The market is bigger than a small pond, and a couple of “big fish” aren’t going to rule it. The importance is understanding the market: how it moves, its trends, or how it is affected by events. We don’t control the market–we work with it. It can be good to trade small, because you are testing and developing your trading strategy. With a small position size, if a trade goes badly you can control damage and regain your ground. So if you’re still in training, young Jedis, judge not by your size!

Happy Trading, and May The Force Be With You!

For Quote #6 click here.

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Yoda Quote #8 “Excitement…Jedi Crave Not These Things”

This is a continuation of the Trading Words of Wisdom By Yoda, for Quote #9 click here.

8. “Adventure. Excitement. A Jedi craves not these things.” The Empire Strikes Back

star-wars-character-yoda-handout-651712929Some might say that the word Investor replaces the word Jedi quite well in this sentence; for some reason, the glamorous life of investing just doesn’t pull to some people. However, being a boring investor can equal some exciting returns when it’s time to retire.

Consider the life of a Jedi: flying through space, fighting bounty hunters, saving a planet. It sounds like the life of adventure dreamed of by little boys, so why would Yoda say that a Jedi ‘craves not these things?’ It is because a Jedi’s role is to serve and protect, not seek the adrenaline rush of fighting for your life. It also takes many years of dedicated training to be master the force. Given the choice between fighting enemy droids or establishing peace in the galaxy, my bet is that Yoda would choose peace.

It’s a common question, ‘What would you do with a million dollars?’ The exciting answers are skydiving, buying a mansion, or an African safari. Yet, most millionaires follow ‘boring’ investment strategies. We want a balanced portfolio that will maximize our returns–without a lot of active participation and stress. Our role is to grow and protect our portfolio, not to enjoy the temporary power rush of a shopping spree. Just like training to be a Jedi (ok, maybe not just like), it takes years of discipline and repetition (boring) to achieve the status of successful investor (cha-ching!). As we’re completing our ‘training’ it’s important not to be sidetracked by ‘hot’ or ‘exotic’ trades–stick to your trading strategy that you’ve developed, trust, and know.

Happy Trading, and May The Force Be With You!

For Quote #7 click here.

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