Trading like Louis Pasteur

One quote to change your framework

Hope Sunday is going well.

So many ideas are swimming in my head, but like some of you, it’s paperwork day, and I’m trying to distract myself by writing on Substack.

I’ll give you one fun nugget I’m doing now, permits!

Apparently, if you file your documents correctly but leave out the LLC, the city, in their infinite wisdom, will think you are operating as a DBA, even though you are not, so you need to spend time clarifying this to them.

Of course, they notified you by email that you have never seen, but I digress.

But I’m empowered and full of energy this morning

as my daughter, 9, makes amazing pancakes with sliced strawberries and Nutella.

What does this have to do with my title of the piece today?

Everything because I have the luxury of time with the right mindset….

Let’s first start with the quote that will make you a better investor, and well, everything that you set out to do

So ask yourself, how do you prepare yourself for your endeavor?

And how do you prepare for some luck?

For me, and my style of writing, I read a lot and write some ideas that I believe will have merit sometime in the future, so

If and when something occurs that triggers an opportunity, I have the confidence to invest or hold my initial position as others pile on.

Let me give you an example you didn’t read about, since I did this before writing daily

MODERNA

You would think you know me by my writing, this would be the last investment I would take a flyer on, but NOPE, I bought this when it crashed as Kennedy took over the Health Services Department

This was a time when Trump had Larry Ellison, Sam Altmann, and that Softbank owner talking about the benefits of AI and medicine, which I believe in wholeheartedly.

At the same time, Scott Adams, the famous Dilbert comic illustrator and podcaster, said that even if the medicine doesn’t work, who ISN’T going to try something that could save your life?

Here is Moderna when I started looking at it (my dates are off, but directionally correct)

So I bought Moderna around $36 because I really don’t have time to trade actively, and thought it was a good value, and my time frame is years.

Even if I sell the next day, I always try to have a long-term viewpoint.

Well, it dropped 50% before rallying HARD earlier this year.

What would have been smarter is that prepared mind of mine would have been patient until LUCK = Breakout occurred, to get more immediate gratification.

It’s that EASY, right?

But WAIT, it looks completely logical on this chart, but did you see something that you would most definitely have experienced if you bought at the green line?

As soon as it spiked and you had the “all clear,” it sold off.

The market, the algos, and Ken Griffin know exactly what you are doing and make you work for it, even at blast-off time.

They took away all your gains before the next leg up

Only a prepared mind would hold on, not one who has technicals and stop losses front and center.

I have no idea what it will do next, but I want to illustrate a potentially counter-trade that is not very popular now, so you can monitor yourself.

Maybe it's dangerous, and it's the devil’s hands, but RNA and the science behind what they do could save our loved ones, and I’m not going to discount it.

Make your dreams come true one sip at a time, this wonderful Sunday morning

Eric