Tae Kwon Do (TKD) is the art of self defense that originated in Korea. It is recognized as one of the oldest forms of martial arts in the world, reaching back over 2,000 years. The name was selected for its appropriate description of the art: Tae (foot), Kwon (hand), Do (the way). TKD utilizes both mental and physical development which provides a setting for emotional well-being, freedom from stress, fear, and a truly unique lifestyle.
There are a lot of parallels between TKD and investing. Someone who is bad at TKD will throw as many punches, kicks, and combinations as possible in any given round. A lot of times these attacks can be easily deflected.
On the other hand, a good TKD practitioner’s every move is well coordinated and planned out in advance. Someone who is in his or her 50s will not be able to match someone who is 20 years younger in terms of speed and endurance in full contact sparring.
He or she will engage in fewer but powerful moves and the aim is to make every strike counts and to knock the younger opponent out as fast as possible. No fancy jumping spinning hook kicks please. Experience is an advantage just like surviving in the world of investing.
As an investor and trader, my strategy is about selective executions depending on the risk parameters. I will not chase anything to impress anyone and will not mind losing some opportunities due to higher risk exposure. After all, most of us have a desire to obtain as much wealth as possible in the shortest amount of time. I have been focused on cryptos, beaten-down innovation and Treasury and emerging market bonds.
Yeah, it was a “bloody” fight and a real lesson for those who never got kicked and punched before. On the road to victory, bruises and even broken noses suffered in sparring is common.
Being a champion in TKD or any other sports is not about talent, luck or wealth. Being a champion is about hardwork, commitment, resourcefulness and work ethic. Cultivating a champion’s mindset is not reserved solely for great martial artists or athletes, it is applicable to all of us in the uncertain world of investing.
If you are investing like another Warren Buffett who is easily one of the best investors on the planet, temporary drawdowns or losses from time to time are acceptable during market corrections. “This is not a ballet school and everyone will get hit.”
I remember telling that to a mother who was too concerned about her young daughter getting “bruises” at a dojang (Taekwondo school). I often forget I’m getting older.
TKD and other martial arts training will expose everyone to knocks, hits, bumps and bruises. Safety rules, protective gears and self-discipline really do keep people from getting hurt seriously. I have cut my losses many times in my trading career over the years. I’m still alive!
TKD practitioners who are taller can make use of their height to knock out their opponents. Those with a smaller size could use the right techniques or pressure to manage a fight. Real diversification or flexibility like using different strategies in different market conditions is important to any long-term portfolios.
After a long break from the combat sport, I’m planning to make a comeback and return to the ring early next year.