Exit Strategy
So, you know how life lessons are kind of applicable on a large scale sometimes? Well, I was sitting in a financial seminar today and started learning about a cool concept I have never considered in my dating life... the "exit strategy." It's like a light bulb went on... Any of my good friends will tell you that my biggest problem with dating is getting too attached (perhaps even to an idea of someone).
But as the financial instructor was criticizing everyone that is "too emotional" about certain stocks and wondering why they hold on to a downward trending stock when all it's doing is loosing them money, he introduced the idea of an exit strategy. He said it takes a plan to start investing (and by extension... I think this can be applied to emotional investments as well). It is a risk, and you have to plan to succeed, and know the "key indicators" that will tell you it's time to sell. The rules are simple: Three green arrows: buy... Three red arrows: sell.
Now, I'm sure what the red and green arrows are can be argued in dating. But I will assume that while all are relatively similar it is unique for each of us. But the concept is sound. The market will go several directions before having three red arrows including up, down, and sideways... but when all targets are moving in a downward trend, it's time to cut your losses to a minimum and get out.
I have to be careful here, because I actually think the rules change once you are married... but for dating, you are really looking to diversify your portfolio until you find the stocks/options strategy that brings you the most ROI. Oh... life how I love you for having multiple meanings. Are you all with me still...
Back to the concept of exit strategy. This is great for someone like me who never plans past the emotion involved in loving someone and assume that love is the final nail in the coffin. It's like being in a relationship with GE stock... welp, while they are a good company on paper, unless you know the market, they aren't always the best stock to invest in. So while GE is super sexy to me because it's popular, I need to have an exit strategy that will allow me to part with it, so that I can move on to more successful partners. However, I have several friends who take the opposite end of the spectrum in trading, but still need an exit strategy as well... they get too panicked and at the first downward trend and they take it to mean more than it does. Remember, there are three downward arrows to look for, and don't forget to realize that even though you might have ups and downs, you can still maintain an overall upward trend and bank quite a bit of money. To panic and yank out of the market right at the first sign of a downward trend might mean that you would miss out on a spike in the ensuing days, months, and even years.
So we need exit strategies people... I'm seriously thinking about what my red and green arrows are right now, and have some great ideas. But I thought I'd share my ah-ha moment with you all, in case this analogy clicks for you like it did for me.
Not to mention... I'm stoked that I'm learning how to trade... because if I'm in a relationship where my husband makes money and I stay home to raise the kids... I can trade to multiply his earnings. A true tag team. I like the idea of that. :) Win-Win-Win... as Michael from the Office would say... :) As a note to my RS President: I have an idea for the next (formerly-known-as Enrichment) activity.
But as the financial instructor was criticizing everyone that is "too emotional" about certain stocks and wondering why they hold on to a downward trending stock when all it's doing is loosing them money, he introduced the idea of an exit strategy. He said it takes a plan to start investing (and by extension... I think this can be applied to emotional investments as well). It is a risk, and you have to plan to succeed, and know the "key indicators" that will tell you it's time to sell. The rules are simple: Three green arrows: buy... Three red arrows: sell.
Now, I'm sure what the red and green arrows are can be argued in dating. But I will assume that while all are relatively similar it is unique for each of us. But the concept is sound. The market will go several directions before having three red arrows including up, down, and sideways... but when all targets are moving in a downward trend, it's time to cut your losses to a minimum and get out.
I have to be careful here, because I actually think the rules change once you are married... but for dating, you are really looking to diversify your portfolio until you find the stocks/options strategy that brings you the most ROI. Oh... life how I love you for having multiple meanings. Are you all with me still...
Back to the concept of exit strategy. This is great for someone like me who never plans past the emotion involved in loving someone and assume that love is the final nail in the coffin. It's like being in a relationship with GE stock... welp, while they are a good company on paper, unless you know the market, they aren't always the best stock to invest in. So while GE is super sexy to me because it's popular, I need to have an exit strategy that will allow me to part with it, so that I can move on to more successful partners. However, I have several friends who take the opposite end of the spectrum in trading, but still need an exit strategy as well... they get too panicked and at the first downward trend and they take it to mean more than it does. Remember, there are three downward arrows to look for, and don't forget to realize that even though you might have ups and downs, you can still maintain an overall upward trend and bank quite a bit of money. To panic and yank out of the market right at the first sign of a downward trend might mean that you would miss out on a spike in the ensuing days, months, and even years.
So we need exit strategies people... I'm seriously thinking about what my red and green arrows are right now, and have some great ideas. But I thought I'd share my ah-ha moment with you all, in case this analogy clicks for you like it did for me.
Not to mention... I'm stoked that I'm learning how to trade... because if I'm in a relationship where my husband makes money and I stay home to raise the kids... I can trade to multiply his earnings. A true tag team. I like the idea of that. :) Win-Win-Win... as Michael from the Office would say... :) As a note to my RS President: I have an idea for the next (formerly-known-as Enrichment) activity.
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