The Refined Investor is designed for a very specific type of person – the kind that is not satisfied to let someone else manage their hard-earned money. This process is not without its pitfalls though, and just like any entrepreneur, the journey to financial success can have many moments where the safety and simplicity of the herd appears extremely desirable. However, while a basic nest egg can be generated over enough time, the creation of true wealth requires someone that is willing to take their financial future into their own hands and work harder and smarter than the crowd.
Risk management is the single most important aspect of investing, but an understanding of the movement of markets is a close second. Avoiding the inherent psychological traps that ensnare investors beginning on day 1, learning to fight the emotions that we inevitably will feel, and then understanding how to align ourselves with the smart money is what the game is all about.
The financial market is one of the most ruthless battlegrounds in the world, and the charred remains of many well-intentioned investors are strewn in its wake. This game has no soul, it does not care who is playing, and it wants as few participants as possible to actually make money.
The Refined Investor is my daily journal of trading strategies, built upon many years of tape-watching, mistakes, successes, and above all:
Ignoring the immaterial.
The best way to become successful in the markets is to train yourself to differentiate what matters from what doesn’t. World-class athletes don’t eat food that will hinder their performance, they don’t listen to beat reporters spewing dirt to benefit their own careers, and they don’t train incorrectly to ultimately fail. No, they only repetitively do what will reap maximum benefits in their individual sport, and they block out anything and everything else.
As a dedicated participant in this game, a game that is the only source of income for me and my family, I like to believe that there are other like-minded investors out there determined to take their respective games to the highest level. The rules of the game continue to evolve, as do the opponents, but the principles for success remain the same. Only by selling-out to those winning strategies can we call ourselves Refined Investors, and reap the rewards of hard work and dedication.
Join me in refining your investing.
Steve Chapman, TRI