10 investing lessons from the movie “The Fighter”

By: ispeculatornew
Date posted: 01.21.2011 (5:00 am) | Write a Comment  (2 Comments)

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If you have not seen “The Fighter”, a movie released a couple of months ago, I personally think it’s well worth watching. It’s based off of the true story of Micky Ward, a boxer that won a WBU title despite a very unlikely route. It’s a movie about boxing but it’s also about life and as almost anything, it can relate to investing as well. Here are a few of the lessons from the movie. You can also see the preview at the bottom of this post!

#1If it looks too easy, it usually is

When Micky had a last minute opponent change, he was told that his guy was fresh off of the couch, he ended up going for it and got destroyed.

=>Do not invest in something that looks like a no lose situation – there is a catch if the others are staying on the sidelines. Stocks that certain to double within a few months usually are too good to be true.

#2-Face reality

When Micky was looking like his career was going to end way too early, it would have been very easy for him to keep on trying the same old things, instead he took the time to think about how things were going. He ended up trying a whole new approach and things turned around

=>When you are on a streak of bad trades, it becomes easy to start trying to make up for it, and that is when things get dangerous. Instead, take the time to look back at what is working and what isn’t. There’s nothing wrong with being out of the market for some time.

#3-Give it your best effort

After giving half efforts with a half team and half dedication, Micky ended up looking at an almost over career. He finally was able to turn things over by dedicating himself like never before

=>In finances as in life, there is no point in trying to do things with a half effort. If you did not have proper time to look at a company or an investment, stay away until you do. In the same way, if you are trying to build a passive income portfolio without a proper plan, there really is no point.

#4-Start small, get your confidence up

When Micky restarted, he took things slow, with a small fight that would help him regain his confidence.

=>If you still have doubts that a huge part of trading is mental, then you are missing out big time. When you had a string of bad trades or have less confidence, start off slow, with smaller investments, smaller trades, etc. As times goes by, you will be able to get back in the game.

#5-Remember the basics

When he was facing Alfonso Sanchez, Micky struggled big time as he tried to follow a plan that was not his. He got completely dominated for the entire fight but in the end, he got back to the basics and what had worked for him in the past, he ended up winning what was seen as a miracle.

=>As much as you

#6-Have some stability outside of investing

Micky started winning once he had a stable and reliable team with him, not just for training but for his life in general. A big part of course was his girlfriend Charlene (Amy Adams). Not only his boxing but his entire life was a mess until he got his life in order

=> In investing as in boxing or anything else in life, it’s difficult to manage if you do not have everything else in order. Surround yourself by a loved one if possible, by friends and your family, it will make you mentally stronger and thus a better trader.

#7-It’s never too late

Micky started off his boxing career early but after all off his early struggles with his brother, he was finished to almost every boxing analyst. But he persevered and was able to turn things around

=> In investing as in anything else, it’s never too late. Some say that if you do not start investing in your twenties or thirties, you will never start early enough. I did write that you could start a passive income portfolio with $5000 and often even less. But you must start as soon as possible, do not delay by one more day.

#8-Trust the right people but only to a limit

Micky had all of his early struggles because of a very questionable entourage, he was not asking himself the right questions

=>Bernie Madoff and many others are people that ended up screwing thousands of investors. You cannot put most of the blame on those investors and many did not have any way of knowing what was happening. But smart investors should diversify their holdings and pay enough attention to limit the probabilities of such events taking place.

#9-It’s not about your opponent, it’s about yourself

Micky’s progress and career took an incredible turn not because of his opponents but because of his own dedication, discipline and training. He was also himself in the ring.

=>We are all surrounded by friends and family but also strangers on tv and in the papers. They all have their own unique situation, their own investments & savings. It’s not about what they have and what they will end up with. We each have different investor profiles and should invest according to our own objectives, risk profiles, etc. It’s important to know yourself, your plan and save & invest according to those.

#10-Persevere

Micky’s title match was against an incredible opponent and to say that it didn’t always look good is a major understatement. He fought with heart, courage but mostly, he kept working on the plan and did not give up, trying again and again until it ended up working.

=>No journey is a straight line. You start somewhere with a destination in mind and sometimes you get off the track. Do not give up, stick to your plan. Save as much as you can, invest as well as you can and in then end you will make it!

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2 Comments

  1. Comment by Zavi — January 21, 2011 @ 8:04 am

    A really inspiring movie! Great post! I like the theme! Thank you for sharing.

  2. Comment by IntelligentSpeculator — January 22, 2011 @ 12:50 pm

    @Zavi – You are more than welcome;)

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