Sell rules, Alcohol, "Fuck you" money, and Twitter dump
Some interesting sell rules from IBD, what "fuck you" money constitutes, and why alcohol does nothing good for you.
These sell rules are quite interesting, and if you think deeply about it, quite intuitive too.
Paul Tudor Jones advises “if you’re adding to trades that are going in favor, it’s sensible and intuitive to also scale out of trades that are going against you” (or at least a variation of that in one of his interviews). These rules, in addition to being intuitive, if you think about why each of them indicates a red flag in the trend, it makes sense to test them on whether they are effective enough.
As with anything, I’d suggest you verify/test these sell rules by going over historical charts and understand the nuances around them.
Loved these two quotes from Jeff Bezos - ties to what I mentioned in my previous post about being deliberately slow in outcome expectations and fast with process improvements - on how if you commit to decades instead of few years, you’re far more likely to succeed.
Jeff Bezos: "If everything you do needs to work on a 3-year time horizon, then you're competing against a lot of people. But if you're willing to invest on a 7-year time horizon, you're now competing against a fraction of those people..."
Jeff Bezos: "You can build a business strategy around the things that are stable in time. When you have something that you know is true, even over the long term, you can afford to put a lot of energy into it."
Found this interesting video on personal finance wisdom where they talk about what constitutes “fuck you money”.
On Alcohol:
Drinking is one of the few activities that if you don't partake people assume or accuse you of having a problem.
I was out to dinner with a colleague years ago and I declined a drink. I was just talking to the visiting speaker, and she said, “God that's so boring”.
Well first of all I don't have a problem saying what's on my mind without alcohol. I'll say what I want to say sober. I think drinkers don't like people who don't drink because it takes the fun out of it for them.
- Andrew Huberman, Huberman Lab podcast.
I recommend watching the full video here:
There’s a podcast Huberman did completely explaining why Alcohol is not good for you, not even *Wine* as many would have you believe.
Twitter dump
