Trade The Journey

Trade The Journey

Wealthy Criminals or Criminally Wealthy? Or Neither?

Its late afternoon and I’m ready to eat.

So I head to the kitchen to find a meal I can quickly prepare. I usually cook, and it takes me close to an hour on average to prepare a meal.

While prepping the meal, I turn on the news or watch an instructional video to pass the time. I do this to maximize the time I have available, and because I hate watching the news. It’s usually story after story detailing the latest tragedy while waiting to announce a new one. So to stay up to date, I watch the news when I cook.

 

Unfortunately, as a trader/investor, I have to know what’s going on. So I prefer to read about what’s happening in the world.

 

This particular day, I found a video of Howard Marks and Micheal Milken discussing Howard Mark’s new book. The picture featured at the top of the post is a photograph from the interview. The interview was about Howards Mark’s new book, “The Most Important Thing.”

In walks, a family member, who stops to gather a snack. While pouring out some cashews, they look up and proceed to listen to Howard Marks talk about bonds. After a second of listening, I hear, “Isn’t that Micheal Milken? They’re both criminals, stealing money.”

Micheal Milken defrauded people, but he also was credited with pioneering the Junk Bond Industry. You could discount his knowledge of finance because of his crime, but I wouldn’t advise you too. I also wouldn’t encourage you to leave your wallet on the table, either.

But Howard Marks isn’t a criminal as far as I know. He has maintained a good image, which I am sure is well earned. I’m a fan of his honesty and knowledge of the markets. So the statement was a blanketed one.

What caught me off guard was the underlying feeling towards people viewed as having wealth. A lot of wealth originated from criminal activities, and a lot of wealth stemmed from hard work. However, the statement made me think of how someone will see me once I acquire wealth?

 

Would they know that I spent long hours under a dim light mastering the art of trading?

Could they see that the only goal I entertained in my mind was the thought of becoming financially free?

Probably not. Most likely, I will feel the same contempt.

 

It wasn’t jealousy; it was a feeling that they cheated others to arise to their level of wealth. There was a separation, an understanding that they and us are somehow different.

Imagine a kid hearing and subconsciously receiving these subtle messages throughout their lives. In every home, the working class feels the pain of the wealthy.

The Middle Class pays a majority of the taxes that provide services for the unfortunate. They also pay for the breaks that the rich get in a variety of ways. Not only is the message of “us vs them” given at home, but it is also reinforced at work among colleagues.

What I saw in the working class is everything I saw in the wealthy, if you stripped away the wealth. In every economic class of people, people are both good and bad.


There is a widening gap developing between the have and the have-nots. The Coronavirus has made this more evident, and I feel this is only the beginning. The United States is slowly losing its competitive advantage to other countries.

Losing the dominance and the ability to rely on its currency could have a devastating effect on the people of the United States. A lot of wealth and stability exist because of the United States’ printing power. If we lost the full confidence of the consumers, the world could follow ushering a new way of currency valuation.

Some say it could be a cryptocurrency, but the trust isn’t there yet. To be clear, the US still has a ways to go before losing its position. The capitalistic system here in the US needs to change, but it also provides the market which offers its advantages.

The one opportunity that exists in the US is the availability of opportunity. With that one feature, it offers an advantage that most other countries lack. This opportunity, unfairly distributed, is what I seek to broaden among those in situations that need inspiration—all in due time.

I believe it to be the best time to strip away the divisions that exist by working diligently to prove that they don’t exist. No one has a limit on the wealth they can acquire. With the advent of the internet, many opportunities are available to build wealth.

The roadblock I see is the thinking needed to build wealth.


Sometimes, I think that my post should involve more complexity and theorems to sound legitimate. I enjoy reading economic and financial journals.

Opening my first trading platform, I thought that the more complex the indicator, the better results. I spent most of my time learning about indicators in hopes of finding a consistently profitable trading system. My charts had three to four indicators at the minimum.

Some charts on the internet featured so many indicators and lines that you could barely see the candles on the chart.

After my first year, I stripped my charts to just two indicators, the RSI and ADX. I used the time & sales and Level 2 order book as my primary indicators. The RSI and ADX are used to confirm the trend and the trend’s strength.

Simple and easy to read charts make it easier for me to think.

I realized that there’s more to what I’m writing than complexities and theorems— its the art of doing and proving what you know.

 

Week in Review:

I want to give myself an “F” for some ill-advised purchases. Maybe the boredom is cracking this one impenetrable shell of frugality. Or perhaps the money from the government has provided me with a false sense of safety.

So this next week, I have to make a better effort of not being at odds with boredom. In these weeks ahead, be very careful moving in and out of stock positions. There will be continuing volatility in the market that could be dangerous for the inexperienced.

With the protest and people demanding for the stay-at-home measures to be eased, we could see a spike in the coronavirus numbers. We can only pray that the people eager to defy the rules placed for their best interest don’t infect others.

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