Focus and Discipline

I had a conversation with someone a while back and my friend thought that seeing these words in a prominent place in my office was indicitave of a significant problem in my life. This has bothered me to no end because I believed strongly (and still do) that these are God-given virtuous character qualities and that it is honorable for me to strive to have focus and discipline in what i do - at work and at home. Now granted all things in moderation but i still argue that these are positive qulities when used in a redeemed fashion...

Which leads me to wonder... Am i really using these in a redeemed fasion? Am i focused and disciplined in my time with the Lord? Of course it's a relationship - and just like my wife, God doesn't want me to spend time with him just because it's 6:45 AM and thats what i'm scheduled to do right now. But at the same time isn't it honoring to Brittany if i schedule a date night and am disciplined and focused about keeping that time free? And am i disciplined about getting home in time for dinner every night so we have family time? (actually this is an area where my discipline usually helps me out). So this year i want to concentrate on the "softer" side of my focus and discipline... Be focused and disciplined about dispensing grace and encouragement

2007 plan and goals

I plan to form my account around 20 core positions (long or short) each being roughly 3 to 5% of the account value each being well thought out fundamentally and technically sound position. I intend to initially commit to a 3% position at an opportune time and risk no more than 10% of the value of the position. At a point I may choose to average up into the position bringing my total to no more than 5% of the account but I will only do this to positions i am already making money on. I may choose to hedge positions with calls or puts to reduce the volatility if market or stock conditions cause uncertainty. However, if things are working well I would like to maintain as much exposure un-hedged as possible as that is my best chance of creating significant value.

In addition to these core positions I intend to have up to 10 positions trading companies that have recently issued new stock either in the form of IPO's or secondary offerings. These positions will be 1 to 3% of the account value and will be shorter term trades based primarily on the technical aspects of how the stocks are trading.

Finally, I will be active in the syndicate calendar as the risk/reward profile for most of these trades is very good. I will hold only the deals that work well for intermediate-term gains. Deals that do not hold above their offer price will be quickly hedged or turned out to minimize damage. I will strive to be involved in all deals in order to keep good relations with the underwriters and will hopefully therefore receive good treatment on deals expected to do well.

Efficient Markets

So how does someone like me with all the emotions and temptations of every other man on the street get to manage a significant portion of some one's retirement assets? This week I think I behaved more like a novice than most untrained e*trade account holders. Lucky me, I escaped with only minor injuries but I know i got off the reservation.

So looking at my performance this year, I am beating my boss.... but is that just luck (possibly Bill's bad luck) or actually due to skill. Also looking at the last 3 years, I have beaten the market by a decent margin, but again that could be due to taking more risk and is still a short period of time to decipher whether it is skill or just "being in the right place at the right time."

But the question remains: Why do I overtrade when I know that i'm not skilled as a short-term trader and that I often mute my gains by trying to capitalize on a short-term move. Am i just too stupid to learn from mistakes? Am I so adventerous that I have to take risky trades to feel like i'm enjoying the job? Or am I so competitive that I feel i have to exploit EVERY opportunity to try to gain an edge and post better returns?

I REALLY REALLY WANT TO DO WELL!!!! So how am I going to cut back on preventable mistakes so I can develop that enviable long-term track record?

out there

The problem with wearing your heart on your sleeve is that you constantly have to wash bloody shirts... So why do people do this "blog" thing and disclose story lines, wishes, dreams and inspirations? And who really reads all those blogs out there anyway?

So this is an experiment and maybe just a high tech way for me to do the journaling i never seem to be able to make myself do consistently.