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Subject:  Smokey the cowboy says... Date:  10/11/2001  7:47 PM
Author:  solasis Number:  84 of 297

Victor Niederhoffer is an entertaining writer but being a westerner by birth, I couldn't help but repost a bit of this article, written supposedly by a retired professional bull rider named "Smokey". It fits nicely with the topic of resilience.

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Smokey says.....

Rule No. 1: If you play long enough, you are going to get hurt. (The only consideration is how badly and how often.)

"The market has always appeared similar to me: If you play the game long enough, you are going to suffer loss. Be it uncontrollable disaster, acts of war, unfavorable market conditions or acting on ill advice, something will go wrong. The geometrical proportion of the loss depends upon all the prevailing elements involved, and a given individual's
response, presumably based on one's preparation, training, experience...and luck."

Rule No. 2: Practice Practice Practice

"Good decisions are not made under pressure. They are made before the event begins. They are made when one visualizes all the possible scenarios that might prevail and the appropriate responses to them: buy, hold or sell.

Buy: The bull swings smooth and wide; rake him for maximum points.
Hold: The bull goes rouge and you are sucked down into the well. That extra wrap grips your hand like death himself. Hold on tight and pray for a good bullfighter whilst you thrill and amaze the crowd.

Sell: You lose your position when you are raked at the gate. A meeting of the minds is at hand: bail and run like hell. 'Tis better to fight and run away...' "

Rule No. 3: Establish a good, valid game plan. Stick to it.

"The superstars of the sport are those who continue, especially in the face of adversity. I have witnessed friends and neighbors continue their quest while suffering bruises, sprains, twist, lacerations, even broken bones."

Rule No. 4: Understand the potential consequences and their true cost.

"Regardless of all of the apparent 'best' efforts to prevent it, the market will cycle. Realize the market will respond to its environment, whether the experts understand it or not. Today, once-great companies lie crippled before us. So, never play with monies you cannot afford to lose. 'Nuff said."

if you want to see the entire article, it's here on MSN

http://moneycentral.msn.com/articles/invest/speculator/7422.asp

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