On Demand

American All The Way

by

Last week, I responded to an idea Dr. Van Tharp presented in an article (There is no success or failure—only feedback.), and in my response, I said the following.

If you continually win, accept that as success, which will breed confidence and further success.

A reader wrote me with an interesting question regarding the statement above.  Here is the question.

You mentioned that if you always win, you are successful.  But, how do you define success?

Specifically, my reference was to trading or investing in the market.  In my mind, if you continually end up making more money than you lose, you win.  This is my definition of success for trading/investing.  I suspect it is everyone else’s as well, at least is of those who trade/invest for a living, or who trade/invest to enhance their retirement, or who trade/invest to get money for their child’s college education, etc. 

Although I reference what we do as a “game,” it is not a game.  It is a “zero-sum” activity.  Simply, there has to be losers in order to have winners.  In this “game,” you can lose everything, but you can never win everything.  Not even Warren Buffet can win it all.  So, more precisely, “success” is not about winning everything, or most of it; success is, simply, making your money work for you; making your money grow.

Now, speaking of making money grow, I am so tired of our big bankers crying about the impending “onerous” global regulations that will keep them from making huge gobs of money.  I am sick of the fat cats who brought the global financial house down whining about how the regulations will keep them from creating real shareholder value.  Yes, I am really fed up with the Jamie Dimons of the world trying to protect their kingdoms.

Jamie Dimon, chief executive of JPMorgan Chase, said he was supportive of forcing banks to have more capital but argued that moves to impose an additional charge on the largest global banks went too far, particularly for U.S. lenders.  "I'm very close to thinking the U.S. shouldn't be in Basel anymore.  I would not have agreed to rules that are blatantly anti-American," he said in the interview.

Who cares what he would “have agreed to ...?”  Who is he to agree to anything?  He doesn’t make the rules.  We do through our collective global governments, and the rules are not about making life hard for the bankers; the rules are about protecting us from another greed-driven feeding frenzy.  The rules are there to force banks to act like banks, not trading houses or investment firms.  The main function of banks in society is to pay interest on savings and to provide affordable loans so everyday folks can be successful and live a decent life.  That is it, no more no less.  Behaving this way is American, all the way, red, white, and blue.  

Trade in the day – Invest in your life …

Trader Ed

Ask Ed a Question

0 Comments

Join In on this conversation, post a comment below.
No comments yet... Be the first to comment.

About the Author

Hello, I am Trader Ed.  No, not Mister Ed, although at times I feel a bit like a talking horse.  You see, my job is to educate folks about the market, which means talking about (or writing in this case) anything and everything that affects the market.  This means the world is my oyster.  Every day, I read for about an hour or so about the happenings in the world.  Every day, I look for leading indicators that will help me “see the future.”  No, I am not an oracle, nor do I pretend to be, but I do look for macro trends that point in a direction, and I am more than happy to share my “vision” with you.  Keep in mind, though, my vision derives from analyzing the fundamentals of the global economy, as well as looking at current movement in the market.  I shun the doomsayers and I embrace the realists.  I look to the positive without denying the negative.  In short, I paint as realistic a picture of the market as I can.  So, if you have a question in this realm, feel free to ask me.  I will answer you in this column and I will do that to the best of my ability.

Hoping to hear from you.

Ask Ed a Question

Membership is Free. Join Now in less than 5 seconds! Alternatively Join or Sign In here.