Author: Ijiujitsu

The best real estate prices are in a depressed market.  As people are frantic with media and frozen with economy the time comes to gain from the short sighted individual.  The person that is ready will be unscathed by the invisible claws of social economics.  Real estate sees its true value when the initial buyer defaults in his mortgage.  The buyer defaults the bank take control and the downed market coerces the bank to show humility and accept, to the benefit to the forewarned buyer, a lofty discount to his new home purchase.

“Where do I go from here?” Says Alice.  “Well that depends on where you want to get to.” Replies the cat.  – Alice and Wonderland.  

A down market crushes the unready.  His mortgage default because of ill saving.  Blind of direction.  Reduction of hours or termination of employment occurs spontaneously.  The hypochondriacs show themselves in a sheep like fashion they find him to consult.  The rabbit hole drives deeper for the unfortunate soul when the government gives money controlling him further.  This cages the dependent man as he falls apart financially and emotionally.  Inevitably giving way to his foreclosure and bank takes back control of the house that was never truly his.  

The banks act as strings of a puppet greedily pulling as much as they can when they can.  The banks are the market movers and tricksters.  When the bank has its final pull it clutches what is officially theirs then passes it off to the next person.  The next person is often not a person at all but a collection of people who all follow in the sheeplike heard ready for slaughter.  The bank indiscriminately pulls what is able without ever considering why or if timing is correct.  In Edward Chancellors book The Devil Take the Hindmost, Edward goes back to the 1600s to illustrate the irrational and slow thinking of how the banks operate.  This goes to abyss when the bank get sacked on being too greedy and suffers from other sins of jealousy and envy.  As the bank pulls what it can from the unprepared the bank sets a darkness around the economy that only the astute investor is prepared and like a hunter he waits for the best shot.  

As the economy mopes and ideally stands by the buyer starts to actively search for new modes of profit.  The buyer reaches a point of genius when the conviction from his thoughts drive the population to do business with him.  From a book (i don’t remember which one), recognizes it’s best to be the third buyer of your house where the first is the initial buyer the second is the bank and the third is the buyer looking for the deal.  In a prime market, buyers are looking for a similar deal and some need to be abandoned as the price becomes too close or slightly above the market value.  However, once the depression strikes the time calls to where there are many more houses to buy with less buyer to drive up the price.  This is where the long-sighted buyer truly finds his dream home.  A value the could be consulted to a propitious future or a sweet deal for the hustler on the side. 

The initial buyer defaults the bank takes back their home and a version of a hero appears.  This pattern isn’t new.  It has been done repeatedly.  The pattern will most likely happen again.  Will people be ready? Or lazy in their fortune? People suffer and others prosper. For any prosperity someone else falters.  This is the pattern of history.  Like Edward Chancellors book on financial speculation, may devil take the hindmost. 

Three steps to survive and capitalize on the bear market swings.  This summary will help to take advantage of reduced taxes, reinvest your money, and clean out all the junk in your investments.  

First, see the collapse and if your profits are now losses it is time to sell. Sell your losses and note your losses so you may recoup a tax benefit up to $3000.  Then when the dramatics of the bear market seem more level now it is time to act.  Look for Total Stock Market Index following funds like VIT – Vanguard Index Fund.  When it’s time to invest into a different fund do it incrementally and consistently.   This is because the more the market drops the more stocks you will be able to buy. Conversely if the market climbs you would have your money already for you.  This idea has been coined dollar-cost averaging by Benjamin Graham; author of Intelligent Investor and Security Analysis.

Second it is wise to covert your 401k holding into a Roth IRA.  This is because you will pay less taxes.  The difference between a Roth IRA and a 401k is that the Roth funds get taxed prior to the investment.  This works excellent when the market is depressed because you will be taxed less on your holdings.  There is no penalty to convert from a 401k to a Roth IRA and there is a 5,500 yearly maximum of conversion. When it time to collect funds from the Roth IRA they will be tax free. 

Third you may sell your dog deals. It seems Gordon Gecko from the movie Wall Street played by Micheal Douglas dubbed this term as companies that you do not care to follow.  This is the chance to release them without getting slammed on a capital gains tax bill.  This is the time to clean up your portfolio.  Like fasting to reestablish your good gut bacteria, a bear market is the time to reestablish your good security holdings.

Three steps will help you survive and capitalize on a bear market.  Always take advantage of a depressed market because market shifts are irrationally dramatic.  Be optimistic during bear markets because all the stock are now on sale and up for grabs.  

It is imperative to choose the optimal play.  Today I’ve heard a counter to a bull fighter pass would be to shoot your legs up into the air to lock on a triangle or high guard.  Considering the three variables Options, Position, and Scale; I believe this would be a terrible mistake and would be less that 50% effective.  Gordon Ryan, when facing a step around pass, bring his torso towards his opponent while at the same time brings his knees to his chest to get underneath his opponent. He then usually goes for one leg and bring the opponent over to take the back.

Marcelo Garcia operates in a similar way by clearing any possible cross face and moving his leg away then into a 180 degree guard recovery.  By using his legs or a short roll to reset. 

Jiu-jitsu is like a game of poker. Because each play is based on probability you make choices on what you believe is optimal.  Winning players use techniques most appropriate to gain advantage over their opponent.   The concept of poker is relative because you do not know if your opponent is technically strong but you must find out quickly to win.  

Core Fundamentals

There are three core fundamentals to look at in a poker game which are chip stack, position, and cards.  You can see chips and position but not the cards.  You can see his size and relative strength (chip stack) and where he moves to first (position) but you can not see what his technical strengths (cards) are or what he plans to use.  

Statistically propitious you must attack first because it will open up the opponents game and expose your opponent.  Then you can rationalize on how best to control the match.  Set up a position that is optimal to your game play.  At the same time you execute your techniques with optimal probability to succeed. 

In poker there are 3 variables that are always changing.  Your chip stack, position, and cards.  These factors have relationship to each other.  If you have a small chip stack (< 10 blinds) you will be much more likely to push all-in at any given time. A large chip stack would give you more power to over bet to frustrate and bluff opponents.  

The position you have give you an immediate advantage considering the players before you have folded their hands.  If you are sitting on the button, cut-off or raising seat and are in the game with a player you know to see every flop, this is a good opportunity to bet 5x blinds + 1 blind for every other player in the hand.  This will increase your probability considering you have entered the game corresponding my suitable hand:position chart.

The cards you hold are the last factor in developing a strong game.  If you raise/attack aggressive/assertive a lot, you are unpredictable.  If you are call/fold passive/defensive a lot, you won’t see much action when you have a favorable hand.  Unless you are playing with a group who is unfamiliar with these fundamentals – which is much more common than you think. 

Setting these three concepts together will help establish a foundation to read people.  Like Mike Caro stated is his book “Theory of Poker” – you will be eventually achieve a level where you think about what your opponent thinks that you think he’s optimal play will be.  Using these concepts will open up your competition and exploit them with optimal strategy.

From a fundamental standpoint of utilizing chips, position, and cards it is easier to relate poker to Jiu-Jitsu.  Because there is a larger emotional account, people enter at a different scale, and techniques gaming and strategy are different among all players.  Move with the most proficient probability and do your best to exploit any weakness and you will optimize your game.

Jiu-jitsu is like a game of poker. Because each play is based on probability you make choices on what you believe is optimal.  Winning players use techniques most appropriate to gain advantage over their opponent.   The concept of poker is relative because you do not know if your opponent is technically strong but you must find out quickly to win.  

Core Fundamentals

There are three core fundamentals to look at in a poker game which are chip stack, position, and cards.  You can see chips and position but not the cards.  You can see his size and relative strength (chip stack) and where he moves to first (position) but you can not see what his technical strengths (cards) are or what he plans to use.  

Statistically propitious you must attack first because it will open up the opponents game and expose your opponent.  Then you can rationalize on how best to control the match.  Set up a position that is optimal to your game play.  At the same time you execute your techniques with optimal probability to succeed. 

In poker there are 3 variables that are always changing.  Your chip stack, position, and cards.  These factors have relationship to each other.  If you have a small chip stack (< 10 blinds) you will be much more likely to push all-in at any given time. A large chip stack would give you more power to over bet to frustrate and bluff opponents.  

The position you have give you an immediate advantage considering the players before you have folded their hands.  If you are sitting on the button, cut-off or raising seat and are in the game with a player you know to see every flop, this is a good opportunity to bet 5x blinds + 1 blind for every other player in the hand.  This will increase your probability considering you have entered the game corresponding my suitable hand:position chart.

The cards you hold are the last factor in developing a strong game.  If you raise/attack aggressive/assertive a lot, you are unpredictable.  If you are call/fold passive/defensive a lot, you won’t see much action when you have a favorable hand.  Unless you are playing with a group who is unfamiliar with these fundamentals – which is much more common than you think. 

Setting these three concepts together will help establish a foundation to read people.  Like Mike Caro stated is his book “Theory of Poker” – you will be eventually achieve a level where you think about what your opponent thinks that you think he’s optimal play will be.  Using these concepts will open up your competition and exploit them with optimal strategy.

From a fundamental standpoint of utilizing chips, position, and cards it is easier to relate poker to Jiu-Jitsu.  Because there is a larger emotional account, people enter at a different scale, and techniques gaming and strategy are different among all players.  Move with the most proficient probability and do your best to exploit any weakness and you will optimize your game.

How this book must be taken in when reading.  Pivoting helps to explain the function of sales and life. How moving forward and taking a step back to advance from a different angle based on how your counter in postured. About the repetition needed to become good at a function of their respective practices.  The repetition of the function establishes a system that yield probability to maybe be successful. From sales, Jiu-Jitsu, and probability you will be able to find commonality in many functions of your life.