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
Some 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.