October 2, 2011 – How To Get Back & The “Makabawi” Syndrome

Stuff I did this weekend:

1.) I spent a huge chunk of my weekend watching Suits in a marathon manner, until my eyes and body drooped because I had to sleep already.

It is Categorically STUNNING!   Enough said.  Seriously, I can’t wait for the 2nd season.

2.) I went to church awhile ago, and the pastor talked about big words such as starting over and going large.

Frankly, this was what my mind was thinking about

The truth is I don’t really like to talk about moving on, “starting over nonsense”.  I don’t feel like January.

However, whether it’s September, October or any other month, it’s always important to reassess and ask ourselves how we’ll bounce back, whether it’s the last 3 months of the year that we’re talking about, or “cramming” our year end goal of hitting a certain number on the weighing scale, or anything under the sun.

This brings me to a topic in Filipino parlance, more commonly called “bawi” .  For my non- Filipino readers,“maka-bawi” loosely translated is “to get back”.

How we “get back” is how we “define” ourselves:

1.)  Others translate “bawi” as revenge and death.

Babawian ko ng buhay ‘yung kumuha ng sandwich ko. (I’ll take the life of that oof who took my sandwich).   Okay, just kidding.  

2.) Others talk about “bawi”, as survival and hope.

Makakabawi rin tayo.  Makakabangon din tayong muli. (We shall recover from this one day)

3.) Others talk about “bawi”, as retreat or defensive step back.

Laban o bawi?  Laban, laban.  Bawi, bawi.  (Fight or retreat?, fight, fight. retreat, retreat.)

Okay, I know my translation is getting clumsier, but if you know the popular game show from Eat Bulaga “Laban or Bawi”, then just play that song.

4.) Others talk about “bawi”, as recovery and triumph.

Nabawi ko na rin ang lahat ng tinalo ko sa stock market.  Para akong lumulutang sa langit. (I’ve recovered all my losses in the stock market.  I think I can now float in the heavens.)

So how are you? How do you make “bawi?”  How do you plan to recover?   How do you plan to bounce back? Are you feeling better or bitter? Positive or Negative?

You see, you’re not alone in facing these “bawi” situations.  It is how we face and take these losses that determine our fate, fortune and future.  Sometimes, making bawi also means “retreating”, and taking a defensive stance.  (Read Ritholz again on Taking losses)

Below are my personal best ideas (found from everywhere) on how to bounce back, and make “bawi”:

1.) Admit we don’t control the markets and you are on your own:  In the trading ecosystem foodchain, there are simply guppies who will always be fooled all the time.  The hedgefunds are whales.  Warren Buffett is a whale.  Tsupiteros, swing traders are piranhas who will try to find every tick up or down, wherever the market’s waves sway them. You get the picture. Know your space, your strengths and your weaknesses.  Know your game.   Related article: Know your strengths – Faceless Trader

2.) Of Course, There’ll be Losses.   Just get used to cutting them.

 At some point you will feel suicidal. That doesn’t mean you lost all of your money. You might  just be having your worst week in 2 or 3 weeks. But for whatever reason you bought when you should’ve sold and that sent your head spinning and now you need to be talked off the ledge. ” – James Altucher (8 Reasons not to DayTrade)

3.) Just play the tape.  Just focus on facts. – Upside Trader, The Next 90 days

Hence, before we get happy feet again, focus on going long the dollar, shorting the markets (that have low-risk setups) or just stay in cash.  

4.) Expect a Violent Oscillating Range.  Do Not Trade This Market – Robert Sinn

This market continues to fool the majority of participants who continue to play for breakouts and breakdowns. This is NOT a trending market, it is a market caught in a violently oscillating range. Those who insist on swing trading in search of 5-10% momentum moves have been, and will likely continue to be sorely disappointed.  This market is here to fool you and take your money.

5.) We now find ourselves in a headline market, so anything can happen from a piece of news.

Keep your powder dry. Be patient. – Peter L. Brandt, 7 Weeks of Market Chop

6.) Double Line Ideas – Jeffrey Gundlach

I’m not a policy maker, I am a steward of other people’s capital and I’m here to outperform.

On the US Dollar:  While everyone is whining and crying about the falling dollar, the simple fact is that the dollar actually bottomed three years ago and is now strengthening.  “The problems inEurope are wildly bullish for the dollar”.  “All of our assets are dollar denominated.”

On Stock Indicators:  “The single most important stock market in the world right now is the Shanghai Composite”.  It is an “excellent leading indicator for the S&P 500.  Shanghai needs to improve before we can be bullish on US stocks.”

– “The Bloodless Verdict of the Market” – In the end, he who gets it right wins, there are no points awarded for being smart but wrong –

7.) “Don’t turn your back, as the market goes whack.” – Rmbrenna

8.) Good Quote on Taking Losses

He either fears his fate too much,
Or his deserts are small,
That dares not put it to the touch,
To gain or lose it all. – James Graham via The Glittering Eye

– Faceless Trader’s personal best ideas always come off from others, and I do not hide that fact to begin with.  So share away 😀