It is amazing how as an investor/trader you can pick valuable business lessons from watching life in general or other specific fields or sports. It is serendipity at work where you get an insight when you are least looking for it.
Ed Seykota referred to one such incident where he got an insight watching the waves at the beach suddenly realizing that TRENDS are like waves, some BIG, some Small that erupt by themselves, while you cannot know how long each wave would last, one thing you can do is to be on the same side.
I picked up an interesting lesson of my own watching this chess game.
I will like to take your attention to an interesting match that happened between 5 time world champion Viswanathan Anand and Ilya Smirin
This was a semifinal game of a blitz tournament. An Armageddon game where Anand had black pieces and needed a draw but 01 minute less than Smirin.
Don’t worry, even if you don’t know chess, this blog will still make sense to you. The lesson is so dramatic and clear that it transcendent lack of chess knowledge.
Starting already with a minute behind, Anand “wasted” 1.43 minutes on Move 4!!! in what appeared to be a a rare variation of Petrov defense
Please watch the video as it comes alive with some high octane commentary by drama queen Maurice Ashley.
I was reading Anand’s autobiographical book , Mastering the mind. where he mentioned this game.
Against Smirin, on move 4, I suddenly drew a blank. The normal move
would be to attack his knight, but I was worried about him making a
capture at f7. I sat there, mulling over my next move, aware of the clock
ticking away. My hand was unwilling to move until my mind found a
path. Looking back, taking the time to think calmly through my next
moves, even while pressured for time, turned out to be a good decision.
This game has an important business lesson hidden for all of us traders/investors.
If Anand with 5 minutes on clock can spend 1:43 on move 4 if he was not sure, you and me can surely stop rushing ourselves into decisions. Take your time, you have more than you think you do. Markets will be here tomorrow too,
This message assumes even more significance for gamblers among us who are trading for the sake of trading, without any edge.
Message is clear, IF you don’t know what you are doing, STOP DOING IT.