Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
USDT is 9-11 for Central Banks the Bitcoin Black Swan - Tether Un-Stable Coin Ponzi Schemes! - 30th Jul 21
Behavior of Inflation and US Treasury Bond Yields Seems… Contradictory - 30th Jul 21
Gold and Silver Precious Metals Technical Analysis - 30th Jul 21
The Inadvertent Debt/Inflation Trap – Is It Time for the Stock Market To Face The Music? - 30th Jul 21
Fed Stocks Nothingburger, Dollar Lower, Focus on GDP, PCE - 30th Jul 21
Reverse REPO Market Brewing Financial Crisis Black Swan Danger - 29th Jul 21
Next Time You See "4 Times as Many Stock Market Bulls as There Are Bears," Remember This - 29th Jul 21
USDX: More Sideways Trading Ahead? - 29th Jul 21
WEALTH INEQUALITY WASN'T BY HAPPENSTANCE! - 29th Jul 21
Waiting On Silver - 29th Jul 21
Showdown: Paper vs. Physical Markets - 29th Jul 21
New set of Priorities needed for Unstoppable Global Warming - 29th Jul 21
The US Dollar is the Driver of the Gold & Silver Sectors - 28th Jul 21
Fed: Murderer of Markets and the Middle Class - 28th Jul 21
Gold And Silver – Which Will Have An Explosive Price Rally And Which Will Have A Sustained One? - 28th Jul 21
I Guess The Stock Market Does Not Fear Covid - So Should You? - 28th Jul 21
Eight Do’s and Don’ts For Options Traders - 28th Jul 21
Chasing Value in Unloved by Markets Small Cap Biotech Stocks for the Long-run - 27th Jul 21
Inflation Pressures Persist Despite Biden Propaganda - 27th Jul 21
Gold Investors Wavering - 27th Jul 21
Bogdance - How Binance Scams Futures Traders With Fake Bitcoin Prices to Run Limits and Margin Calls - 27th Jul 21
SPX Going for the Major Stock Market Top? - 27th Jul 21
What Is HND and How It Will Help Your Career Growth? - 27th Jul 21
5 Mobile Apps Day Traders Should Know About - 27th Jul 21
Global Stock Market Investing: Here's the Message of Consumer "Overconfidence" - 25th Jul 21
Gold’s Behavior in Various Parallel Inflation Universes - 25th Jul 21
Indian Delta Variant INFECTED! How infectious, Deadly, Do Vaccines Work? Avoid the PCR Test? - 25th Jul 21
Bitcoin Stock to Flow Model to Infinity and Beyond Price Forecasts - 25th Jul 21
Bitcoin Black Swan - GOOGLE! - 24th Jul 21
Stock Market Stalling Signs? Taking a Look Under the Hood of US Equities - 24th Jul 21
Biden’s Dangerous Inflation Denials - 24th Jul 21
How does CFD trading work - 24th Jul 21
Junior Gold Miners: New Yearly Lows! Will We See a Further Drop? - 23rd Jul 21
Best Forex Strategy for Consistent Profits - 23rd Jul 21
Popular Forex Brokers That You Might Want to Check Out - 22nd Jul 21
Bitcoin Black Swan - Will Crypto Currencies Get Banned? - 22nd Jul 21
Bitcoin Price Enters Stage #4 Excess Phase Peak Breakdown – Where To Next? - 22nd Jul 21
Powell Gave Congress Dovish Signs. Will It Help Gold Price? - 22nd Jul 21
What’s Next For Gold Is Always About The US Dollar - 22nd Jul 21
URGENT! ALL Windows 10 Users Must Do this NOW! Windows Image Backup Before it is Too Late! - 22nd Jul 21
Bitcoin Price CRASH, How to SELL BTC at $40k! Real Analysis vs Shill Coin Pumper's and Clueless Newbs - 21st Jul 21
Emotional Stock Traders React To Recent Market Rotation – Are You Ready For What’s Next? - 21st Jul 21
Killing Driveway Weeds FAST with a Pressure Washer - 8 months Later - Did it work?- Block Paving Weeds - 21st Jul 21
Post-Covid Stimulus Payouts & The US Fed Push Global Investors Deeper Into US Value Bubble - 21st Jul 21
What is Social Trading - 21st Jul 21
Would Transparency Help Crypto? - 21st Jul 21
AI Predicts US Tech Stocks Price Valuations Three Years Ahead (ASVF) - 20th Jul 21
Gold Asks: Has Inflation Already Peaked? - 20th Jul 21
FREE PASS to Analysis and Trend forecasts of 50+ Global Markets by Elliott Wave International - 20th Jul 21
Nissan to Create 1000s of jobs with electric vehicle investment in UK - 20th Jul 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

How to Think Like a Mad Man, Find your Edge & Risk Little for Lots

InvestorEducation / Learning to Invest Mar 26, 2012 - 01:52 AM GMT

By: Aftab_Singh

InvestorEducation

Best Financial Markets Analysis ArticleThe enigma that is eccentricity can be unravelled by grasping of this single statement; that which you perceive is both a matter of the object of your perception (in this case; the eccentric person) and your apparatus of perception. Eccentricity, then, is as much a quirk of the popular mind as it is of a particular person. So with the assumption that you seek creativeness and intrigue — here’s how to think eccentrically, find your edge and risk little for lots.


Eccentricity over the ages.

‘How to think’:

It may sound peculiar that contrary thinking is required to achieve creative thoughts… This, however, becomes self-evident when we realize that thinking the way someone else thinks results in mimicry — a “copy-cat” requires the minimum of creative thought… Therefore, the inference is that to achieve any creativeness, some change has to be made. From this, it stands to reason that the optimum in creativeness must approach the maximum change… and the maximum change must be close to the opposite.

Zuce Kogan, Founder of the Creative Thinking Institute

  1. Rid Yourself of Nebulous Terms – Define, Redefine & Refine.

    Unless you’re an orator or something it’s highly likely that nebulosity is your enemy. If you speak and think in vague terms, then simple, logical deductions are likely to evade you. But since life involves doing one thing or another, chances are that you’ll default to linking concepts in the ‘default’ way — the way suggested by the crowd. In that case it is likely that the succession of vague, emotive images will govern your action.

    The power of words is bound up with the images they evoke, and is quite independent of their real significance. Words whose sense is the most ill-defined are sometimes those that possess the most influence. Such, for example, are the terms democracy, socialism, equality, liberty, etc. whose meaning is so vague that bulky volumes do not suffice to precisely fix it. Yet it is certain that a truly magical power is attached to those short syllables, as if they contained the solution of all problems. They synthesise the most diverse unconscious aspirations and the hope of their realisation.

    Gustave Le Bon, The Crowd, A Study of the Popular Mind

    Since eccentricity involves a capacity to deal with reality in a supposedly ‘odd’ manner and since the crowd deals mainly in vague images, one clear way to surpass them is simply to define the terms in which you speak and think.

    This can seem daunting — especially at first. However, since the crowd remains ever-ponderous and dogmatic, it takes but a very small amount of clarity to achieve oversized gains. One need not plan out the redefinition of one’s entire vocabulary — just start with one concept that you use a lot in your daily life. I expect that the incentive gleaned from the initial reward will be enough to prompt further redefinitions and refinements.

  2. Allocate All of Your Available Resources Contrarily.

    Contrary allocation of capital seems to be well-acknowledged as a key to success in certain investment and entrepreneurial communities. However, it also seems to remain compartmentalized as a theory about allocating capital and capital only – I say that if you wish to reach the honourable status of the ‘Mad Man’, it is prudent to apply this theory to all of the resources at your disposal:

    Everything that should be managed lies here.

    The truth is that you should allow your mind ruminate contrarily for more than just your money – but also for your time, energy and your attention. The integrated eccentric is he who doesn’t give up in any of these fields.

    Whenever you are next faced with a seemingly trivial matter (such as whether or not to read a newspaper, take a taxi or express interest in an uninteresting matter) allow yourself to consider what the ‘common way’ is and just try the opposite.

  3. Adopt a Kantian Distaste for Intellectual Discussion & Stop Checking with Others.

    Sometimes, if not most of the time, it is quite unnecessary to acquire the opinions of others before you act. Yet nevertheless I see a strong tendency for people to check and verify trivial and non-trivial matters with one another. This brings about two serious hindrances to the wannabe wacko; 1) it forces you to adapt your language to that of someone that is probably confused and using nebulous terms and 2) it will likely introduce unneeded emotions into your mind.

      In order to acquire a sense of creativity I suggest that you act before you tell others about your actions and – in particular – adopt a Kantian distaste for intellectual discussion:  

    By and large Kant, unlike Socrates, avoided the company of philosophers and philosophically minded fellow citizens. He did this not because of any conviction that philosophers as a breed are inevitably frivolous or consumed by the need to prattle on about their most recent publications; some are, to be sure, and these one would seek to avoid in any case. He was certainly aware that in his field of study there existed colleagues with whom he could talk about bank accounts, ball games or battle plans. But philosophyers tend to talk about philosophy. And even if such talk is motivated by infinite charity and fraternal goodwill, it provokes some response, comment or counter-arguement to the ideas and theories presented. In print the same arguments have quite a different impact; they can be simply registered without requiring an immediate response, or can be interpreted to suit one’s frame of mind, and as a last resort a page can be turned and a book can be closed. But in conversaation courtesy demands that the addressee react and relate himself. And this, in Kant’s view, is a dangeerous exercise and one that certainly lacks the productive element that Socrates may have found in it. Philosophyers, or so Kant thought, work best in isloation…

  4. Test Your Revelations in Small Ways. Proceed to Fail Small & Win Big.

    So by now hopefully you’ve defined at least one term that has significance to your life, considered allocating your time, attention and money contrarily and considered doing something big without checking with anyone at all. Chances are that you may have thought of something interesting. The default consensual reaction is to elaborate a plan in a manner that requires significant resources (be that money, time, energy, attention or whatever else). I urge you to take a step back and consider how you might test it in the smallest possible way.   I’m always astounded by the degree to which people attempt to impose the property of permanence upon themselves. [facepalm] Why oh why? [/facepalm] Permanence through life is most frequently a large and onerous speculation — and indeed a type of speculation that is likely to be unattainable due to the ever-changing nature of each and every living individual. I suggest that if you wish to maintain your newfound eccentric temperament and demeanour, then risk little, lots rather than lots, little. If you risk little, lots you will not suffer the emotional turmoil that accompanies a large drawdown – and if you’re thinking contrarily you’ll likely be risking little for lots.

  5. Acquire Refined Senses of Ignorance & Stubbornness

    The final step to eternal quirkdom is to maintain both a refined sense of ignorance and a refined sense of stubbornness. In the first instance, I should define my terms:

    By ignorance, I mean a lack of knowledge. By stubbornness I mean an unwillingness to move from one’s intellectual position.  

    The former ‘sense of ignorance’ is merely a sustained application of point 2) about properly allocating all of your resources. By carefully selecting what enters your mind, you can maintain a temperament where you decide the content of your ignorance (or more precisely the content of your non-ignorance). This term – most commonly used as an insult – is in this sense quite neutral. We all must be lacking in knowledge (since we are not beings of perfect intelligence). Acquiring a refined sense of ignorance is merely rejecting the notion that the crowd should determine what you are not to ignore (and to be sure that determination is perilously nebulous anyhow!).

    The latter ‘sense of stubbornness’ is merely the unwillingness to forego logic for the vague images of the crowd. Once again – it is a rejection of the crowd’s vague concept of when you should and should not give up your intellectual positions. 

Aftab Singh is an independent analyst. He writes about markets & political economy at http://greshams-law.com .

© 2012 Copyright Aftab Singh - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in