The magic power of compounding
- Thread starter QdzResurrection
- Start date
That past two weeks surely didn't look pretty. On one hand, the Fed insisted its pressure on further rate hiking to confront inflation. On the other hand, foreign currencies and crude oil refused to retreat.
The choices are pretty limited for everyone alike, both investors and traders. So the open question is where the money should go?
Inflation up
Rate hike
Equity decline
Bond decline
Where should the money go?
How about interest and dividend?
The choices are pretty limited for everyone alike, both investors and traders. So the open question is where the money should go?
Inflation up
Rate hike
Equity decline
Bond decline
Where should the money go?
How about interest and dividend?
Quote from qdz3se:
In our life, how many experiences come and go? How many ideas come and go? How many solutions to problems come and go? Human brain is built in to perform garbage collection automatically, which sometimes is very efficient to make us focusing on "important" things and make us feel comfortable. But the problems is that we keep losing useful information from ideas to experiences to other profits.
Examples of compounding in life:
1. Track how money comes and goes every time whenever it happens. It is easy to to see the benefit when we file tax and analyze our cash flows. But keeping this habits is not easy. So how to find a compromise? It is simple, always try to use either personal checks or a credit card, and avoid cash. But still every month we need to reconcile our account statements. There is no total shortcut to compounding only compromise.
2. Collect coins in piggy banks, if we have to use cash more or less, Spent one minute every day to clean up our pockets or handbags and put the coins in our piggy bank. After every year, withdraw from the piggy bank, then either donate it to the charity for hungry kids worldwide and write off the tax, or just depot the money to real bank accounts. How much difference do you think you will make after keeping this compounding habit for 40 years?
3. Recycle. Ask your community center for recycling programs. Share the enjoyment of compounding with other people.
4. Keep a diary. Write down what happens, what you do, what problems you solved every day. However, as to many compounding examples, the first problem is the difficulty to just keep doing it consistently. Then the second problem is how to make good use of the stuff you have compounded overtime.
Many more compounding examples and stories to come....
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Re reuse
Our community doesnt recycle this kind of paper;
like to reuse business envelopes, like a free post it note.
I will address the questions to me later.
Now let us ask ourselves the following questions. How are the basic practices that professional altheletes repeat almost everyday in a season? How about us the traders? How long since our last practice on trading?
Now there is a clue for this question. Why would we expect favourable results based on such degree of practice?
Now let us ask ourselves the following questions. How are the basic practices that professional altheletes repeat almost everyday in a season? How about us the traders? How long since our last practice on trading?
Now there is a clue for this question. Why would we expect favourable results based on such degree of practice?
yes practice doesn't make perfect.... *perfect* practice makes perfect it's possible to practice casually, and solidify a casual action&result into habit However, if we want a growing/improving result, we need to practice the same way.
How many times did we fall down while learning to walk? ... ride a bike?... what would make trading any different, aside from it being even more complex and requiring more understanding?
if you would prefer me to leave the thread to you alone, please mention it. I do appreciate your style of thinking and would enjoy posting similar style thoughts occassionally if it fits in with your goal for your thread
Jon
How many times did we fall down while learning to walk? ... ride a bike?... what would make trading any different, aside from it being even more complex and requiring more understanding?
if you would prefer me to leave the thread to you alone, please mention it. I do appreciate your style of thinking and would enjoy posting similar style thoughts occassionally if it fits in with your goal for your thread
Jon
Quote from qdz3se:
Shoo Shoo bears!
It is not a comfortable time to be bearish. No inflation. CPI came mostly in tame. It is not difficult for Fed to add fuel to the economy when needed.
CPI is lagging indicator and much less weight than PPI, IMHO.
If we see another 0.8% or so next month, run for the exits.