11 November 2020

How To Have Certainty In The Midst Of Uncertainty

 


"Doubt is not a pleasant condition, but certainty is absurd."
Voltaire
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Recently I asked a few of you what’s on your mind as we finally inch closer to 2021.

The responses were pretty much unanimous.

Most of you are worried about the uncertainty we’re facing.

More specifically, financial uncertainty.

Next year… and beyond.

I get that.

And yet, I see so many of you making an enormous mistake. One that’s actually creating the very condition you fear.

And more of it at that.

Financial uncertainty.

Allow me to explain.

All over the world people are telling themselves the story that because there is so much uncertainty, they should wait.

Pull back.

Hesitate.

Do nothing until 2021.

Do nothing until you "know more." 

Do nothing until the virus is gone.

Do nothing until the economy really revs back up.

Can you see how backward that is?

You “don’t know what’s coming” and your response to that financial uncertainty is to do nothing... to refuse to prepare at all... which leaves you totally vulnerable to whatever does come your way!

I’m frustrated just writing it.

There are actually a few things of which we CAN be certain. A few things that are going to be true no matter what the virus or the economy or politicians throw at you…
  1. You won’t be going to go back to business as usual. It really doesn’t matter what your job or business is. Things have changed. So if you’re sitting around not adjusting, not pivoting, not planning because you’re crossing your fingers that in time things will go back to normal you are going to be in for a rude awakening. Normal is a thing of the past… if ever it was a thing. And because of that….
  2. What used to work so well, won’t anymore. Your clients, your staff, your vendors, your family, they have all been through it and their needs, their behaviors, their policies, their expectations are all different now.
  3. The people who are re-writing their financial plan, adjusting and implementing new and/or improved processes that set them up for predictable income streams are going to fare FAR better than the ones who are playing the "wait and see" game.

There’s a fundamental principle that I follow in my trading… 
“I don’t need to know what’s going to happen in the market in the future... because I know what I’m going to do in response to whatever happens.”
What I mean when I say “I know what I’m going to do...” is I know I’m going to protect my capital… act in a risk prudent way no matter what. That gives me immense peace of mind because it removes the need to sit around stressing about what’s going to happen in the markets.

And it’s a lot more profitable as well😜.