The 80/ 20 rule or also known as Pareto Principle suggest that 20% of your activities (say trading) will account for 80% of your results.
What it means is say you have a portfolio of 10 products (stocks, futures, commodities, cryptocurrencies,etc). Of the 10 products, 20% of it < i.e. 2 will yield you the highest level of profits (or 80%).
Why is this important ?
It is important because it allows you to average up your price as the trend moves in your favour.
Another example is here, Apple shares. Instead of just buying at the beginning of last year and hold till current period, you could have added your longs in those 3 pull backs as shown on the chart. That way, you maximise your profits out of a single product that has proven itself on the strategy that you employed (say trend line).
It is the same as Amazon as well. This pullback which we see now and I hope it goes to 1845 so I can accumulate more and ride it up to a higher level.
Do not get too entrenched on the exact 80/20 percentage , it is a guide. In your case, it may be 75/25 or whatever number. Use this powerful principle in your trading and observe over a period of time and you would be amazed how beneficial it is for you.
what 20% of people, things and activities are drawing you 80% nearer to your financial goal ?
This works both ways, it could also be what 20% of people , things and activities are drawing you 80% FURTHER away from your financial goal ?
For example, is sleeping late, not taking care of your body, mind and spirit, not taking time to repair or improve important relationships with your loved ones helpful to you? Unlike robots, we cannot compartmentalise the different departments in our lives and still operate at our best. Each department if not taken care of affects the other and thus it is in our interest to strike a balance.
Think it this way, if Amazon, in this case yield you a major part of your returns, are you giving it the same attention (80%) by reviewing its charts, doing adequate research, taking up opportunities when available ? Or are you still searching for the next gem in the market place ?
What it means is say you have a portfolio of 10 products (stocks, futures, commodities, cryptocurrencies,etc). Of the 10 products, 20% of it < i.e. 2 will yield you the highest level of profits (or 80%).
Why is this important ?
It is important because it allows you to average up your price as the trend moves in your favour.
Another example is here, Apple shares. Instead of just buying at the beginning of last year and hold till current period, you could have added your longs in those 3 pull backs as shown on the chart. That way, you maximise your profits out of a single product that has proven itself on the strategy that you employed (say trend line).
It is the same as Amazon as well. This pullback which we see now and I hope it goes to 1845 so I can accumulate more and ride it up to a higher level.
Do not get too entrenched on the exact 80/20 percentage , it is a guide. In your case, it may be 75/25 or whatever number. Use this powerful principle in your trading and observe over a period of time and you would be amazed how beneficial it is for you.
what 20% of people, things and activities are drawing you 80% nearer to your financial goal ?
This works both ways, it could also be what 20% of people , things and activities are drawing you 80% FURTHER away from your financial goal ?
For example, is sleeping late, not taking care of your body, mind and spirit, not taking time to repair or improve important relationships with your loved ones helpful to you? Unlike robots, we cannot compartmentalise the different departments in our lives and still operate at our best. Each department if not taken care of affects the other and thus it is in our interest to strike a balance.
Think it this way, if Amazon, in this case yield you a major part of your returns, are you giving it the same attention (80%) by reviewing its charts, doing adequate research, taking up opportunities when available ? Or are you still searching for the next gem in the market place ?
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we added long today
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Looks like the ecommerce players in US are more resilient than the Chinese tech companies. The price is well supported at 1845.89.
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what happens after one month? It proves patience pays off
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Even tech stock like AMZN is not spared...it is good for me as I am able to buy this great company at a lower price. Not buying yet
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Like FB, I am also going to take a nibble as the price has come back to the support zone of 1845. Mr Market always give us chance to re-enter but the decision remain yours, that is one part they cannot do for you.
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a very nice bullish candle yesterday. can take some profits as it is likely to retrace at 2168 level.
www.cnbc.com/2020/01...ustralia-canada.html
Amazon wants a slice of the Healthcare market as well......