Not all investments generate return. Some may be temporary loses and some may end up being a write-off. People that has lived through the Nortel Networks and Bre-X era know what I am talking about. When those companies fell, there were people who lost their entire savings and some lose their life too. Investment strategies for young adults is different than those reaching their retirement years.
If you are into the stock market, you have to survive through the ups-and-downs but there are certainly times when you have to cut lose and move on. You can do as much research as you want but the quality of the research is only as good as the information you are given.
Fights are very similar to investments in certain ways:
- There are no guarantees but odds – if you put in the work, you increase your chances of success but don’t assume it is risk free.
- You need to gather information before you invest – if you just dive into a stock because somebody said so, you cannot blame somebody else when you did not do your homework. One of the first question in a street encounter is always how many? enemy’s end-goals? possible exits? What elements are under my control? How fast you can gather such information when you don’t have research videos and training camps specific for a fight can become the deciding factor. Remember again, the quality of the ‘answers’ or ‘observations’ is only as good as the information available.
- You need resources (whether you own it or if it is borrowed) – investing needs money and it has to come from somewhere. Lack of resources limits your options. Resources for fights are your skills, knowledge, stamina, power, ability to deliver, adapt and respond. Plan and accumulate this over time. It is something that you earn through work.
- Stick to game plan and goals (not ego) – one of the hardest thing to learn is to let-go when reality proves that you made a wrong decision. Tthere are also people who become emotionally attached to a stock/company and that easily becomes their archilles heel. Plan your entry and exit points BEFORE you even invest in a stock. Common sense approaches like sell half when the stock doubles may mean that you may miss the peak but you succeeded in conserving capital and spreading odds. Remember the ultimate goal – investments are to grow wealth, NOT to prove you are right. Similarly, for street fights, it is to survive and not superiority.
- Spread your odds – have contingencies. You cannot guarantee anything, therefore you have to hedge your bets. For example, you will tell someone they are foolish if they walk to the casino and go all-in in their first bet. In the UFC fights, you see some counter punchers that try to load-up their punches aiming to find the perfect opportunity to KO their opponent. However, they end up missing opportunities because they are either telegraphing or always late in cashing in on the counter. Mohammed Ali is famous in picking his opponent apart through his seemingly uncommitted jabs.
Exercise
Explain “borrowed resources” as applicable in fights. Also explain the pros and cons of it.