18 May 2006 - Developing a Gameplan

1. Understanding the Human Weakness

This is by far the most important part of being a Gamer. We always focus on others' opinions of what constitute a good game for us to invest in. There is always a discomfort in parting with our money and we want to have good feelings before investing. It is natural we want to hear cheerleaders because that is us being human. Just take note, have you realised how great the cheerleading was for Stormysurf? It was paying for 6 months without fail and promptly and before the scheduled 10 days. It got louder and louder. Anybody reading the posts will want to throw in their money and it is all in the unconscious that we are often not aware. No human is immune to it. My friends even emailed me to ask about great business potential. The fact they asked tells me the message is getting thru' around the internet. My reply was that you should get real but not discounting the possibility there might be really something in Stormysurf, my attitude is that of a gamer. I put my money expecting the program to be a game and if it turns out better and is longlasting, it is a big bonus! If it dies which apparently happened quite a lot, I will still walk away happy.

Many lost due to the entrance of a play at a peak of good feelings which happens when the cheerleading is loud - it is the noise which I called it. But before you point your fingers at them and start blaming, please learn to be responsible for your own actions. You do your own thinking and calculations. Get real! They are just human beings reporting on how they feel or suggesting what they think. End of day, the onus must always be on you. Hence, I always use a gauge on my own feelings and as long as I see potential based on a set of objective criteria (I will update these another time and please look out for it), and when I feel the discomfort, the game is on! Mind you, this is a difficult thing to do and it takes a certain discipline. I see many people who will look at what I am suggesting as programs to play, and they will 'think' about it but actually, they are looking for good feelings. Right? Even I am often tempted to be like that. It is just being human and understanding this is crucial to distinguish yourself to be a good gamer!

2. Defining your Risk

Risk is solely defined as the amount you are prepared to lose in any game. It is dependent on your capital. Everybody who plays a game or invest in a business, must have a capital to begin with. This is your stake and you must define it. Assuming your overall capital to play these games is $1000, and you get excited by the incredible prompt payments by Stormysurf. Then you decide to whack all the whole $1000 on Stormysurf. Good idea? If it turns out well, you make 50% more in 10 days and you pat yourself on your shoulders and say 'Well done!'. But this is about risk? What if the unfortunate happens and even in a 90% probable gain, the other 10% can still happen. Hence, you have just lost all your capital on 1 chance you got! This is absolutely bad strategy. How do we play? I recommend that you invest not more than 10% on any one program with small amounts (say $500 or less), and try to lower it as low as 5% and even to 2.5% for big capital. It doesn't mean you go round and throw money into 10 programs (each with 10% assuming this level of 10% risk) cos all programs have to meet your objective criteria. If you haven't found them, take your time. Diversification is essential in the plan. If we don't diversify, well you have to be a great soothsayer to choose the right programs. If you can do, by all means, do not diversify. But who is that soothsayer? I wish I know this fellow if he is around.

3. Defining your reward

Reward is about how much you can make in any one game. After making a gain, what do we do? Some will put back the same capital and roll again. There are a number who will throw everything back into it and roll. Which strategy to use is dependent on what you consider as the life of a surf (I will cover it in another time!). The life of a surf is basically what you gauge to be the probable lifespan of a program (it is about probability and not certainty) and the payout structure of the program. As a gamer, we are always dealing in probabilities and hence, I would recommend that if a surf program shows promise to last longer, do go big by going in with all your principal plus profits, and roll for additional 1 or 2 more rounds keeping in mind the payout structure as well. If it is not showing the high potential, keep your capital and roll on profits for the next round, and with that, go for profit taking and rolling the other half of the profits.

4. Defining percentage gain/loss

If we keep following the principles above, every play has a percentage gain or loss, preferably gain. Most surf programs range from 20% to 100% yield in a month assuming no compounding is done on the principal. If we get the right programs and following a strict gameplan, we should be able to pocket a handsome gain on every play. After averaging out, you should have be able to proclaim a monthly return. For next month, go back and re-define your capital, risk and rewards which now include profits. Do the same as elaborated above. When we can achieve a consistent percentage gain every month, then compounding it further in the months, you should do very well.

That is it, folks and I hope it is useful for all of you to understand this world of risks and rewards, and playing a game well. Remember to get out before it gets you out!