How To Bet On Winning Horses

Life is a gamble, we win some and lose some. There are also winning streaks and losing streaks.

But I think a good way to gauge whether one is lucky or not is when they win at least three or more times in a row. Usually, luck isn't frequent, it comes once or twice and then goes.

Of course, if we're also on a losing streak, the same thing could be applied. Perhaps the problem isn't bad luck but the way we've been doing things. In such cases, we may need to pivot instead of persevering.

Given that losing is part of the game, which means it is unavoidable. People have come up with all sort of ways to minimize its impact, as this tends to be severe or overwhelming.

In trading, we learn to use stop-loss. In investing, we diversify and even in business, we make contingency plans, all serving one purpose of minimizing loss.

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Three Ways To Identify Winning Horses

But now, let's shift gears and turn our attention to a different kind of race – the pursuit of financial success. Here, the winning horses aren't flesh and blood, but the investment vehicles with a knack for crossing the finish line first, delivering returns that leave the competition in the dust.

I think the days of exclusive investment markets and their high barrier of entries are gradually moving behind us. Today, a myriad of investment options with easy accessibility have opened the doors to wealth creation for everyone.

But with so many tempting paths, how do we identify the "winning horses," the investments promising financial success?

For me, I basically boil it down to three basic key points. Trends, Evergreen and Unique Edge.

Trends influence the dynamics of any landscape. In investments, knowing how to recognize rising stars and waning giants is crucial and can be a game changer.

In practice, it's usually learning to decipher the 'whispers of data' and not be overly dismissive on the murmurs of market chatter.

Trends aren't hard to spot if we're wiling to dig a little deeper beyond the surface. And having this keen awareness of the financial currents will help us navigate the ever-changing terrain and choose investments poised for pole position.

While trends may come and go, some needs remain constant. Sometimes, the most dependable investments are the ones that quietly fulfill basic needs.

Think utilities, consumer staples, and healthcare – industries that thrive regardless of the latest tech fad or economic hiccup.

These are often termed 'evergreen' and yes, they might not offer dazzling returns, but their consistent performance and resilience make them invaluable cornerstones in creating a well-balanced portfolio. I think it's a great sector to focus on when we're on the preserving stage of the wealth system.

In horse racing, we can think of them as the steady thoroughbreds, dependable and unflashy, yet always crossing the finish line with a respectable lead.

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No doubt, both trends and evergreens offer solid foundations. But there's also a different kind of financial success that often hinges on uncovering a unique edge.

This goes beyond simply following the crowd or relying on established norms, since many can do that. It's more so about tapping into our own knowledge, interests, and insights to identify investment opportunities that others might miss.

Think of it like this: trends are the wide, well-trodden paths, while evergreens are the reliable highways.

But the hidden gems, the investments that truly leave the competition in the dust are mostly found in the less-traveled side roads and unexplored corners of the financial landscape.

In Closing

The power of trends, the stability of evergreens, and the spark of our unique edge, are all ways to identify winning horses.

Essentially, they're guiding principles to sift through the available investment options and pick the one(s) that resonate most with our individual goals, risk tolerance, and knowledge base.


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