Investment rules and the I Ching
These are some basic rules to apply when consulting the I CHING for its advice on choosing an investment:
1) Diversification. The I CHING does not exempt the investor from diversification. Whatever the investor decides to buy, he must diversify. The investor will get excellent returns if he combines the I CHING’s advice with research, but he must always make sure he has at least eight corporations on their way to Heaven in at least 5 different sectors.
2) Detachment. It is crucial not to become obsessed with any investment in particular, and to go with the one the I CHING says will be the most profitable for us – the one in Heaven on their way to Heaven or in Lake on their way to Heaven or Lake. There are thousands of corporations listed in the various Exchanges, each going through different cycles and each to be considered a possible investment at the right time of the cycle. Thus, we must always look for alternatives rather than force a possible answer from the I CHING. We must, as Peter Lynch would say, pick up enough rocks to find the best investment under it. He who picks the most rocks wins the game.
3) Discipline. We must keep in mind that our resources are limited and that therefore we may only choose the best investments according to the I CHING’s advice. Only those who have abundant resources could choose investments, which could be considered marginal, this means low returns with a too long-term horizon. For the great majority of the investors these options are out of the question. Most of us have no choice but to invest in whatever the I CHING clearly recommends as an investment alternative, or in those, which the I CHING says, will be very successful. When the verdict turns true then it will become obvious that we cannot invest our limited resources in a marginal investment.
4) Time Horizon. The time horizon for every investor as well as for every investment is different; however, whenever you make an investment based on an I CHING reading, you must do it at least under a 42-month period. Every line’s “duration” is of at least a seven-month period. Thus, if the investor gets a reading with a great line such as “Great Good Fortune” in the fifth line, you should be prepared to wait for at least 35 months to see the benefits of the investment. Or wait until the 30th month has passed to start investing.
