Rallying the stock market

Dirt 2 rally

Do you know what’s the best analogy for stock market? It’s rally. Yes, I’ve been psyched over a new game, DIRT 2. I’ve been playing it for 5 hours and I found so many similarities between investing and negotiating corners in Dirt 2.

In rally, there is a mini map where you can see the tracks layout for the track ahead of you. No matter how perfect the map is, there is still some surprises that can make or break your race. There are loopholes, water ponds, crests, long jumps and rocks at sides and many more. Same for the stock market, you have your own indications, technical or fundamental. However, no matter how clear your indications are, they aren’t always right.

In rally, if the track in front of you is not visible, you have to make the decision. You might want to cut the corner and get faster speed, or you don’t want to cut because you afraid there will be a big rock that can total your car. The decision that you make depends on who you are; a risk taker or not. There is no right decision, it’s just the best decision based on who you are.

As in rally, if you have gone through the same track again and again, you will get familiar with it. You’ll know when to cut and when to stay in the track, when to make a big jump and when to slow things down. As you become a more experience driver, the better are your decision.

And if you are a beginner, don’t sweat it. Take the “P” sign, stick on your back, and cruise the track with caution and knowledge.

Comments are closed.