- · Do you understand yourself? Risk profile, tolerant, patience, discipline,etc
- · Do you understand your terrain? Just stocks? Units trusts? Forex? Etfs? (For diversification)
- · Who’s your friend or enemy?
Most of us have heard of SUN Tzu. There was a ‘rumour’ Sun Tzu wrote a script on the Art of War. After his era, kings, prince, emperors, etc were searching for the script. Eventually the script was found.
One of Sun Tzu’s knowledge was related to understanding the weather. You may have heard how he used the weather to his advantage to win his battles. In the battle at the Red Cliff, his opponent lost as a result of a ‘gust of wind’! In another battle, he predicted the eclipse of the Sun.
How does this relate to market trends?
The above is related to understanding the weather or climate. In this case, the financial equivalent is relating to the macros, economic data, geo-politics, music and noises happening in the financial market. And to filter/massage the actual events.
Others in brief. The above is Understanding the weather.