Anti-Ponzi

Discussion in 'Trading' started by birzos, Sep 12, 2016.

  1. birzos

    birzos

    What most don't know there are direct Ponzi schemes but also indirect Ponzi mechanics, the difference is simple but the end result is the same.

    A direct Ponzi is where you have actus reus and mens rea combined, an indirect Ponzi is based on the mechanics of a Ponzi but there is no direct mens rea. Everyone does it, so it's ok. Here's the problem, a Ponzi regardless of direct or indirect brings people in with the allure of 1 in, 10 out, and with not much effort, what they don't tell you is what happens next, you lose 100.

    With an anti-Ponzi you put in 10 and get out 100, more work, more capital but you also have a more interesting life. Why, making money is about being preventative, there are studies that clearly show only the top 1% make money trading, it is also the fact that the top 1% are preventative.

    So why be in the top 1%, simple, money might not buy you happiness but it does buy you time. Monaco have the longest living people on average by more than 5% compared to the closest country, plus the stories to match which is what life is all about.

    https://www.quora.com/In-which-countries-does-the-global-elite-reside-in/answer/Cody-Shirk?srid=uq7x0

    After receiving research reports this past week it’s very clear, today the financial environment is built on Ponzi mechanics. Not convinced, that’s fine just wait, in the next 1yr there will be another Lehman, weeks to months if there’s a material event leaving no one to fund the mechanics, within 2years if the central banks flood the economy with more money trying to ‘feed the beast’!

    How do you trade, again very simple, anti-ponzi is not lying to yourself and not lying to others, it’s why the rich get richer, and why 99% of traders don’t make any money but it’s hard work. You need to gain experience, you need to be trained by someone with that experience, or you need to put your funds with a preventative manager. The point of prevention is in worst case it is neutral, Ponzi mechanics in worst case you lose your shirt but have no backstop, everyone else also lost their shirts at the same time.

    So can people make money with Ponzi mechanics, yes, they are normally the service providers but there is a problem. When there is no more new money to ‘feed it’ the service providers implode at 100:1, that was 2008, a Ponzi mechanics implosion

    So in great capitalist style, they make sure the next time the leaks are plugged, spend 7-10years building it up again, and now we are at capitulation stage! To be in the top 1% is to be preventative, which is anti-Ponzi, you actually have to do some work. Now, the group work with were kind enough to provide the infrastructure, sure they want to be paid, but it allows 1 in, 9 funded, and 20 out.

    Most will never know the underlying reason why the mechanics stopped working, they hit bottom which is a very long way down without a backstop, then the cloud clears and the party starts again. Ponzi is the oldest game in the book, Tulip Mania, CDS, the list goes on always with the same end result.

    In August wanted to watch the Olympics in full, so using preventative techniques just put on one trade, and was up +8% of account. That trade was scheduled in July, the conditions came online, clicked the button, and that is that. Prevention is giving up for today to make a better tomorrow, it’s anti-Ponzi, and against 99% of peoples view of how the world works. It’s also why was offered an apartment in Monaco for a month overlooking the harbour at 50% discount, patience, timing and monitoring for the exact conditions when to click the button!

    We are now in a world of indirect Ponzi, the central banks are trying to keep the ‘beast’ moving, no one is producing anything useful selling amongst themselves, and there’s no new money or growth coming in to the system to ‘feed it’. Input $2trillion, evaporate $20trillion, then how do preventative methods in the top 1% work.

    They step back as the party starts, build up an infrastructure for growth explaining the issue along the way, and when people don't listen provide a backstop as the $20trillion moves away from weak hands. So why don't the preventers stop it from happening, well you can’t help other peoples stupidity especially en masse, and there’s no point in being taken out yourself, if you don’t like it go and live on a Caribbean island and go fishing every day.

    The really smart ones build something meaningful to help people create a backstop, try and prevent all the funds from completely evaporating, distribute those funds via charities and foundations, then go and live on the island (or Monaco) and enjoy life on the money they made from building something useful.


    PS. There are way too many 'wise guys' who will say "If you can't explain it simply, you don't understand it well enough" - so the simple answer just for them - "it's not any one else's fault you're not smart enough to understand how it works!"
     
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