No Lose Stocks / Options Trading 2016 Option Expiration Review

I don’t sell access to this investing service on this site anymore, but I still trade the recommendations. Since I have all of my previous reviews here, this seems like a good place to keep posting them.

For some background, I don’t count a trade as a winner/loser until it’s sold, or expires. So I gauge the returns of my system based on all the trades that expire on the same expiration date. So my reporting lags about 2 years, meaning I currently have trades in my portfolio that will expire in 2018. I won’t know until then how well I’m doing now.

Here’s the review of the January 2015 expiration trades.

OPTIONS PURCHASED TO OPEN TRADE

Contract $/Contract Buy Date
T Jan 15 2016 45.00 Call $0.57 9/20/2013
PPL Jan 15 2016 45.00 Call $0.15 10/1/2013
LLY Jan 15 2016 70.00 Call $0.76 10/1/2013
JNJ Jan 15 2016 115.00 Call $1.18 10/4/2013
INTC Jan 15 2016 35.00 Call $0.43 10/4/2013
DD Jan 15 2016 85.00 Call $0.78 10/16/2013
MW Jan 15 2016 65.00 Call $0.40 10/31/2013
KO Jan 15 2016 55.00 Call $0.50 11/4/2013
VZ Jan 15 2016 70.00 Call $0.69 11/4/2013
PPL Jan 15 2016 35.00 Call $0.65 11/6/2013
MCD Jan 15 2016 130.00 Call $0.67 11/12/2013
KRFT Jan 15 2016 75.00 Call $0.54 11/12/2013
MW Jan 15 2016 60.00 Call $0.49 11/12/2013
K Jan 15 2016 95.00 Call $0.14 11/12/2013
GE Jan 15 2016 40.00 Call $0.25 11/14/2013
WMT Jan 15 2016 115.00 Call $0.27 11/15/2013
FE Jan 15 2016 50.00 Call $0.35 11/21/2013
MO Jan 15 2016 50.00 Call $0.24 11/25/2013
CSCO Jan 15 2016 32.00 Call $0.40 11/26/2013
GIS Jan 15 2016 70.00 Call $0.57 12/6/2013
KMP Jan 15 2016 105.00 Call $0.31 12/16/2013
PFE Jan 15 2016 45.00 Call $0.41 12/23/2013
WM Jan 15 2016 60.00 Call $0.40 1/3/2014
EMR Jan 15 2016 100.00 Call $0.75 1/3/2014
POT Jan 15 2016 47.00 Call $0.95 1/6/2014
ETP Jan 15 2016 75.00 Call $0.40 1/8/2014
AFL Jan 15 2016 95.00 Call $0.67 1/9/2014
TGT Jan 15 2016 85.00 Call $0.56 1/24/2014
TWC Jan 15 2016 165.00 Call $0.50 1/29/2014
KMI Jan 15 2016 50.00 Call $0.26 2/10/2014
PG Jan 15 2016 110.00 Call $0.55 2/13/2014
HD Jan 15 2016 110.00 Call $0.91 2/20/2014
NYCB Jan 15 2016 22.00 Call $0.15 2/20/2014
SWY Jan 15 2016 47.00 Call $0.36 3/6/2014
ETR Jan 15 2016 80.00 Call $0.60 3/6/2014
MAT Jan 15 2016 55.00 Call $0.45 3/11/2014
DUK Jan 15 2016 90.00 Call $0.55 3/14/2014
HON Jan 15 2016 130.00 Call $0.98 3/20/2014
JPM Jan 15 2016 85.00 Call $0.66 3/27/2014
MRK Jan 15 2016 80.00 Call $0.60 3/31/2014
MMM Jan 15 2016 195.00 Call $0.75 4/1/2014
UTX Jan 15 2016 165.00 Call $0.76 4/11/2014
TRV Jan 15 2016 120.00 Call $0.60 4/29/2014
WFC Jan 15 2016 70.00 Call $0.37 5/8/2014
CVX Jan 15 2016 170.00 Call $0.35 5/19/2014
AEP Jan 15 2016 65.00 Call $0.40 5/21/2014
UNP Jan 15 2016 140.00 Call $0.73 6/13/2014
CAG Jan 15 2016 40.00 Call $0.16 6/20/2014
COP Jan 15 2016 110.00 Call $0.70 6/25/2014
USB Jan 15 2016 55.00 Call $0.38 7/18/2014
KMB Jan 15 2016 145.00 Call $0.70 7/22/2014
CL Jan 15 2016 80.00 Call $0.66 8/1/2014
CLX Jan 15 2016 110.00 Call $0.51 8/5/2014
BHP Jan 15 2016 90.00 Call $0.77 9/4/2014
BAX Jan 15 2016 95.00 Call $0.48 9/9/2014
LO Jan 15 2016 75.00 Call $0.67 10/7/2014
PEP Jan 15 2016 120.00 Call $0.73 12/26/2014

OPTIONS SOLD TO CLOSE TRADE

Contract $/Contract Sell Date
PPL Jan 15 2016 35.00 Call $1.45 5/30/2014
ETR Jan 15 2016 80.00 Call $4.80 6/19/2014
INTC Jan 15 2016 35.00 Call $3.57 8/21/2014
MO Jan 15 2016 50.00 Call $2.79 11/10/2014
LLY Jan 15 2016 70.00 Call $4.80 12/2/2014
KMI2 Jan 15 2016 105.00 Call $5.58 12/29/2014
CLX Jan 15 2016 110.00 Call $5.40 1/22/2015
AEP Jan 15 2016 65.00 Call $3.30 1/28/2015
HD Jan 15 2016 110.00 Call $9.15 2/11/2015
KRFT Jan 15 2016 75.00 Call $7.70 3/25/2015
TWC Jan 15 2016 165.00 Call $10.70 5/20/2015
MW Jan 15 2016 60.00 Call $4.80 6/3/2015
CAG Jan 15 2016 40.00 Call $3.90 6/19/2015
MW Jan 15 2016 65.00 Call $4.90 6/22/2015
TGT Jan 15 2016 85.00 Call $4.10 6/23/2015
BAX1 Jan 15 2016 95.00 Call $0.01 12/21/2015
KMB1 Jan 15 2016 145.00 Call $0.01 12/21/2015
RAI1 Jan 15 2016 75.00 Call $1.76 12/21/2015
MCD Jan 15 2016 130.00 Call $0.01 12/21/2015
TRV Jan 15 2016 120.00 Call $0.02 12/21/2015
DD1 Jan 15 2016 85.00 Call $0.01 12/21/2015

Summary

I purchased 57 options in the period from September 20, 2013 through December 26, 2014.

I sold 15 options when the underlying stock reached its strike price before the January 2016 expiration date.

I also sold 6 other options on December 21, 2015 that were worth some small amounts, but would not very likely hit their strike prices before the January 15, 2016 expiration date. I made a mistake when doing this. I entered the trades when the market was closed and chose to “sell at market”. Since some of these were thinly traded and didn’t have any “bids”, they sold for pennies per contract. I probably lost about $200 in value due to that mistake, so not a crazy amount, but enough to help me remember the lesson.

That leaves 36 trades that expired worthless.

I purchased to open $3077/contract in trades, with $5 * 57 = $285 in commissions, (I’m estimating $5 per trade), for a total of $3362/contract paid out.

I sold to close $7876/contract, with $5 * 21 = $105 in commissions for a total of $7771/contract in deposits.

That means my return from September 20, 2013 through January 2016 was ($7771 – $3362)/$3362 = 131%…or roughly 66% per year.

Also note that by 1/28/2015, the winning trades had already paid for all of the trades I would place in this group. Any trades that paid off in the year after that were pure profit.

It’s okay to be wrong…what matters is the magnitude of the times you are right, and the minimizing of the pain from the times you are wrong.

Note the opposite could also happen…being right 99% of the time, but those 1% wrong times could wipe you out.

Smile Watcher

Smile!

Making yourself smile can make you a happier person. There is also evidence that people who smile more are healthier and live longer.

And, according to Tony Robbins, there was a study done at UC Berkeley that showed that smiling for 20 minutes for 20 days could help clinically depressed people get off their meds and not be depressed.

So I created a tool to help me practice smiling while I work.

The tool uses your computer’s webcam and watches your face. It takes a picture every 3 seconds and checks if you are smiling or not. If you are smiling (80% happy or more), then the screen turns green. But if you stop smiling (less than 80% happy), then the screen will turn red. Any time the screen changes from red to green, or green to red, the computer will beep.

The tool has only been tested on the Google Chrome web browser, and may not work on other browsers. If your webcam doesn’t turn on when you click Start, then the tool won’t work on your browser.

How To Use The Tool

– In Chrome browser, go here: https://jsfiddle.net/7ja0t0bo/10/

– Click the “Start” button circled in red in the screen shot below

– It will ask for access to the camera on your computer.

– Grant access (assuming you don’t object…the pictures and video are not stored any where and no one except you will see them)

– Smile. : )

– Every 3 seconds it will take a snapshot and then tell you how happy it thinks you are (among other emotions it grades for). If you are 80%+ happy, the screen will show green and “beep”. If you become less than 80%+ happy it will turn red and “beep” again. It “beeps” any time there is a change in “80%+ happy”, either lower or higher.

smilewatcher

For Technologists

This tool uses Microsoft’s Emotion API, which is part of their Cognitive Services APIs.

The APIs allow you to create services that rely on vision, speech, language, knowledge, and search.

The code for this smile watching tool is hosted by a service called JSFiddle. Programmers use this service to share examples of code with each other.

Feel free to play with the code and change it however you like. You won’t mess it up for anyone else. If you click “Update”, it will give you a new URL with your changes. If you save or bookmark that URL, you can come back to your changes later. And you can share your URL with your changes with other people if you want.

For example, maybe you find an 80% smile to be too much smiling and would prefer a 50% smile. Find the line that looks for 80% smiling and change it to 50%. (Hint: it’s going to have “> 80”, which you would change to “> 50”, and then click “Run”, and then click “Start”.)

Happy smiling!

Think And Grow Rich – Chapter 15: How to Outwit the Six Ghosts of Fear

Finishing my analysis of Think and Grow Rich.

This is for Chapter 15, How to Outwit the Six Ghosts of Fear

(Go here to start from the beginning.)

Quote and Analysis

“Take Inventory of Yourself, As You Read This Closing Chapter, and Find Out How Many of the “Ghosts” Are Standing in Your Way. BEFORE you can put any portion of this philosophy into successful use, your mind must be prepared to receive it.”

The interesting thing here is that this chapter is the last chapter of the book, but to use the rest of the book, I have to first use this chapter to identify my fears and prepare myself to receive the philosophy.

Quote and Analysis

“The preparation is not difficult. It begins with study, analysis, and understanding of three enemies which you shall have to clear out.

These are INDECISION, DOUBT, and FEAR!

The Sixth Sense will never function while these three negatives, or any of them remain in your mind. The members of this unholy trio are closely related; where one is found, the other two are close at hand.”

The entire purpose of this book is to bring me to where I have access to the Sixth Sense: knowledge that comes to me through my imagination in order to tell me how to be successful at my endeavors.

So, if I am indecisive, doubtful, or fearful about anything, then I will close down, and I won’t have access to this knowledge.

Quote and Analysis

“INDECISION is the seedling of FEAR! Remember this, as you read. Indecision crystallizes into DOUBT, the two blend and become FEAR! The “blending” process often is slow. This is one reason why these three enemies are so dangerous. They germinate and grow without their presence being observed.”

So, as long as I can avoid indecision, I will short-circuit the creation of doubt, and that short-circuits the generation of fear.

Note that indecision also leads to inaction. “I’m not sure what to do, so I’ll wait for more information (and do nothing in the meantime).”

Thus one of the ways I can stomp out fear is to keep moving, and not to allow myself to get stuck. I can try something. If it doesn’t work, I can try something else.

Quote and Analysis

“THE SIX BASIC FEARS

There are six basic fears, with some combination of which every human suffers at one time or another. Most people are fortunate if they do not suffer from the entire six. Named in the order of their most common appearance, they are:

The fear of POVERTY

The fear of CRITICISM } most of one’s

The fear of ILL HEALTH } worries

The fear of LOSS OF LOVE OF SOMEONE

The fear of OLD AGE

The fear of DEATH

All other fears are of minor importance, they can be grouped under these six headings.”

I’m listing these here for reference.

Kind of interesting that he says they are listed in order of their most common appearance. In the list, all of the fears are above the fear of Death, meaning that Death is the least feared.

I’ve heard it said before that most people fear Death LESS than they fear Public Speaking (which would be a manifestation of a fear of Criticism). If that’s you, and you’d like to be able to master your fear of Criticism, consider trying out Toastmasters.

I used to DREAD public speaking, but after participating in Toastmasters for a few months, I lost that fear. And now, after a few years of participating, I actually enjoy public speaking. It’s a very supportive and growth-oriented environment.

Quote and Analysis

“We are here laying the foundation for the presentation of a fact of great importance to the person who does not understand why some people appear to be “lucky” while others of equal or greater ability, training, experience, and brain capacity, seem destined to ride with misfortune. This fact may be explained by the statement that every human being has the ability to completely control his own mind, and with this control, obviously, every person may open his mind to the tramp thought impulses which are being released by other brains, or close the doors tightly and admit only thought impulses of his own choice.

Nature has endowed man with absolute control over but one thing, and that is THOUGHT. This fact, coupled with the additional fact that everything which man creates, begins in the form of a thought, leads one very near to the principle by which FEAR may be mastered.

If it is true that ALL THOUGHT HAS A TENDENCY TO CLOTHE ITSELF IN ITS PHYSICAL EQUIVALENT (and this is true, beyond any reasonable room for doubt), it is equally true that thought impulses of fear and poverty cannot be translated into terms of courage and financial gain.”

Whatever the mind of man can conceive and believe, the mind of man can achieve. That’s the “secret”. This section is saying exactly that, in the negative sense. If I conceive that I could fail. And then believe that I could fail. Then I will fail.

On the other hand, if I conceive that I will succeed, and then believe that I will succeed, then I will succeed.

He’s saying success has nothing to do with ability, training, experience, or brain capacity. These are all things that I generally assume are needed, and that I must build up first before I can achieve some particular desire. But it turns out I don’t need any of those. I only need to keep thoughts that are negative out of my mind, and then create and support in my mind thoughts that are positive. I only need to control my thoughts, and thus create a positive State of Mind, which is directly opposed to a fearful State of Mind. So this chapter is meant to help me remove the possibility of a fearful State of Mind, so that I can then create a positive State of Mind, and receive insights from the Sixth Sense.

Quote and Analysis

“Fear of poverty is a state of mind, nothing else! But it is sufficient to destroy one’s chances of achievement in any undertaking, a truth which became painfully evident during the depression.

This fear paralyzes the faculty of reason, destroys the faculty of imagination, kills off self-reliance, undermines enthusiasm, discourages initiative, leads to uncertainty of purpose, encourages procrastination, wipes out enthusiasm and makes self-control an impossibility. It takes the charm from one’s personality, destroys the possibility of accurate thinking, diverts concentration of effort, it masters persistence, turns the will-power into nothingness, destroys ambition, beclouds the memory and invites failure in every conceivable form; it kills love and assassinates the finer emotions of the heart, discourages friendship and invites disaster in a hundred forms, leads to sleeplessness, misery and unhappiness-and all this despite the obvious truth that we live in a world of over-abundance of everything the heart could desire, with nothing standing between us and our desires, excepting lack of a definite purpose.

The Fear of Poverty is, without doubt, the most destructive of the six basic fears. It has been placed at the head of the list, because it is the most difficult to master. Considerable courage is required to state the truth about the origin of this fear, and still greater courage to accept the truth after it has been stated. The fear of poverty grew out of man’s inherited tendency to PREY UPON HIS FELLOW MAN ECONOMICALLY. Nearly all animals lower than man are motivated by instinct, but their capacity to “think” is limited, therefore, they prey upon one another physically. Man, with his superior sense of intuition, with the capacity to think and to reason, does not eat his fellowman bodily, he gets more satisfaction out of “eating” him FINANCIALLY. Man is so avaricious that every conceivable law has been passed to safeguard him from his fellowman.”

I wasn’t sure what the “Fear of Poverty” was until I read this part. The “Fear of Poverty” is a “scarcity mindset”. It’s the belief that there isn’t enough to go around, so I need to hoard or take from someone else. It is the belief that there is NOT an over-abundance of everything that I or anyone could want. It’s the belief that I need to grab my share, rather than the belief that I can create a greater share for myself and everyone if I want.

Quote and Analysis

“Self-analysis may disclose weaknesses which one does not like to acknowledge. This form of examination is essential to all who demand of Life more than mediocrity and poverty. Remember, as you check yourself point by point, that you are both the court and the jury, the prosecuting attorney and the attorney for the defense, and that you are the plaintiff and the defendant, also, that you are on trial. Face the facts squarely. Ask yourself definite questions and demand direct replies. When the examination is over, you will know more about yourself. If you do not feel that you can be an impartial judge in this self-examination, call upon someone who knows you well to serve as judge while you cross-examine yourself. You are after the truth. Get it, no matter at what cost even though it may temporarily embarrass you!”

This is hard to do. I think it almost has to be done with someone else. When I do it by myself, I’m able WITHOUT EVEN NOTICING to skip the ones that are really important to me. The questions that hold the key to what is holding me back the most. Writing down my answers is an important piece of the process because it requires clear thinking, honesty, and completeness.

If I don’t write it down, then I can kind of fudge in my mind and skip over it without actually thinking through the answer.

One other thing that tends to focus my thinking is to require that I write down a specific example of a time I did the positive or negative side of the question. A specific example is one that I could put a date to. Not something general.

If I do this, then I can start to root out these fears and switch to a positive State of Mind…even if I thought I was already in a positive State of Mind.

Quote and Analysis

“The greatest of all remedies for the fear of death is a BURNING DESIRE FOR ACHIEVEMENT, backed by useful service to others. A busy person seldom has time to think about dying. He finds life too thrilling to worry about death.”

Note that one remedy for a fear of death is SERVICE TO OTHERS.

Quote and Analysis

“This fear is useless. Death will come, no matter what anyone may think about it. Accept it as a necessity, and pass the thought out of your mind. It must be a, necessity, or it would not come to all. Perhaps it is not as bad as it has been pictured.”

Interestingly, I think this might be a limiting belief in the author’s mind. It cannot be that “death will come, no matter what anyone may think about it” and that “whatever the mind of man can conceive and believe, the mind of man can achieve”. Both cannot be true.

It should be just as effective to remove the fear of death to believe that death will never come, as it is to accept and believe that death will always come. The “trick” is to believe whichever way I choose, and not to doubt. I must make a decision one way or the other, but I can’t sit in the middle and worry.

Quote and Analysis

“Decision can also prevent one’s acceptance of undesired circumstances. The six basic fears become translated into a state of worry, through indecision. Relieve yourself, forever of the fear of death, by reaching a decision to accept death as an inescapable event. Whip the fear of poverty by reaching a decision to get along with whatever wealth you can accumulate WITHOUT WORRY. Put your foot upon the neck of the fear of criticism by reaching a decision NOT TO WORRY about what other people think, do, or say. Eliminate the fear of old age by reaching a decision to accept it, not as a handicap, but as a great blessing which carries with it wisdom, self-control, and understanding not known to youth.

Acquit yourself of the fear of ill health by the decision to forget symptoms. Master the fear of loss of love by reaching a decision to get along without love, if that is necessary.”

These are decisions I can make, beliefs I can decide to believe, to eliminate these fears.

Quote and Analysis

“The release of destructive thought impulses, alone, without the aid of words, produces also a “kickback” in more ways than one. First of all, and perhaps most important to be remembered, the person who releases thoughts of a destructive nature, must suffer damage through the breaking down of the faculty of creative imagination.

Secondly, the presence in the mind of any destructive emotion develops a negative personality which repels people, and often converts them into antagonists. The third source of damage to the person who entertains or releases negative thoughts, lies in this significant fact -these thought-impulses are not only damaging to others, but they IMBED THEMSELVES IN THE SUBCONSCIOUS MIND OF THE PERSON RELEASING THEM, and there become a part of his character.”

So, if I think “negative” thoughts, thoughts that support the 6 basic fears, thoughts of lack, or worry, then I am damaging myself in these 3 ways.

I am damaging my connection to the thing that is going to make me successful, my creative imagination, my connection to the Sixth Sense.

I am damaging myself by creating a negative personality that will make others want to work against my desires instead of for them.

I am damaging myself by training my mind to think these thoughts as a matter of habit and thus become my character.

Quote and Analysis

“In addition to the Six Basic Fears, there is another evil by which people suffer. It constitutes a rich soil in which the seeds of failure grow abundantly. It is so subtle that its presence often is not detected. This affliction cannot properly be classed as a fear. IT IS MORE DEEPLY SEATED AND MORE OFTEN FATAL THAN ALL OF THE SIX FEARS. For want of a better name, let us call this evil SUSCEPTIBILITY TO NEGATIVE INFLUENCES.

Men who accumulate great riches always protect themselves against this evil! The poverty stricken never do! Those who succeed in any calling must prepare their minds to resist the evil. If you are reading this philosophy for the purpose of accumulating riches, you should examine yourself very carefully, to determine whether you are susceptible to negative influences. If you neglect this self-analysis, you will forfeit your right to attain the object of your desires.

Make the analysis searching. After you read the questions prepared for this self-analysis, hold yourself to a strict accounting in your answers. Go at the task as carefully as you would search for any other enemy you knew to be awaiting you in ambush and deal with your own faults as you would with a more tangible enemy. You can easily protect yourself against highway robbers, because the law provides organized cooperation for your benefit, but the “seventh basic evil” is more difficult to master, because it strikes when you are not aware of its presence, when you are asleep, and while you are awake. Moreover, its weapon is intangible, because it consists of merely-a STATE OF MIND. This evil is also dangerous because it strikes in as many different forms as there are human experiences. Sometimes it enters the mind through the well-meant words of one’s own relatives. At other times, it bores from within, through one’s own mental attitude. Always it is as deadly as poison, even though it may not kill as quickly.”

In particular, I want to note here that he’s saying this “susceptibility to negative influences” is MORE often fatal than all of the six fears. So even if I root out all of the six fears, I still need to deal with this.

And the way that I can do this is by using the self-analysis questions in the book. I know for myself, that I have to write down my answers, and try to think of specific examples, dates/times, of when I did the positive side of the question. If I can’t think of examples that specific, and I can’t write them down, then I have found one of the hiding places of my enemy, and one of the chief obstacles to my positive state of mind.

Quote and Analysis

“Recognize that you are, by nature, susceptible to all the six basic fears, and set up habits for the purpose of counteracting all these fears.”

The habits he’s talking about are sprinkled through the book. The habit of reading my DCA in the morning and in the evening is an example of these habits.

Other habits that I have are avoiding news in all forms…newspaper, TV, radio, internet, twitter, etc.

Quote and Analysis

“Recognize that negative influences often work on you through your subconscious mind, therefore they are difficult to detect, and keep your mind closed against all people who depress or discourage you in any way.”

Keeping my mind closed against all people who depress or discourage me could mean that I avoid these people, but it doesn’t have to mean that. Sometimes I can’t avoid them. So it means that I need to put anything they say in a different light. I need to view their statements as fiction or as a viewpoint that is coming from false information.

I can try to influence them and show them my own viewpoint and the more positive perspective, and often this works and they brighten. But sometimes it doesn’t and they choose to stay in their negative state of mind. That’s fine as long as I don’t allow them to affect my positive state of mind.

Quote and Analysis

“Deliberately seek the company of people who influence you to

THINK AND ACT FOR YOURSELF.”

So, I don’t have to ignore ALL external influences. I can allow in the positive ones, the ones that support my beliefs. I just have to reject the negative ones.

My Master Mind group has been a great source of this kind of influence.

Quote and Analysis

“To aid those who wish to see themselves as they really are, the following list of questions has been prepared. Read the questions and state your answers aloud, so you can hear your own voice. This will make it easier for you to be truthful with yourself.”

As I said above, I find it even more useful to write the answers down instead of just stating them aloud.

Quote and Analysis

“How much time have you devoted to studying and answering these questions? (At least one day is necessary for the analysis and the answering of the entire list.)”

Here’s a helpful reminder of how long this kind of deep introspection should really take. It’s not going to be something I can just zip through in a few minutes. I need to seriously consider each question and make sure that I’m not skipping over the hiding place of a weakness.

Quote and Analysis

“Study the questions carefully, come back to them once each week for several months, and be astounded at the amount of additional knowledge of great value to yourself, you will have gained by the simple method of answering the questions truthfully. If you are not certain concerning the answers to some of the questions, seek the counsel of those who know you well, especially those who have no motive in flattering you, and see yourself through their eyes. The experience will be astonishing.”

I need to come back to these questions once a week for several months. So, I need to spend a full day, once a week for at least 3 months…or approximately 12 times of going through this full list of questions and answering each one specifically.

And I need to seek the perspective of others. I don’t have to adopt their viewpoints, but it would be helpful to see if there is a perspective that I am missing by a habit of not looking in that direction.

Quote and Analysis

“Mind control is the result of self-discipline and habit. You either control your mind or it controls you. There is no hall-way compromise. The most practical of all methods for controlling the mind is the habit of keeping it busy with a definite purpose, backed by a definite plan.”

Again, the importance of habit is being affirmed. I can control my mind or let it control me. And the way I can control it is to keep it busy with my DCA and a plan to achieve that DCA. Even if that plan needs to change in the future, making a decision and taking action toward the plan is the key to stomping out fears.

Quote and Analysis

“Remember, too, the philosophy presented in this book makes every one of these alibis obsolete.”

So, even if I find my particular pet belief in the list, I don’t get to believe that I’m stuck. The philosophy of stomping out my fears, locking in a positive state of mind, and following the 13 principles will lead me to my success.

Quote and Analysis

“The Master Key is intangible, but it is powerful! It is the privilege of creating, in your own mind, a BURNING DESIRE for a definite form of riches. There is no penalty for the use of the Key, but there is a price you must pay if you do not use it. The price is FAILURE. There is a reward of stupendous proportions if you put the Key to use. It is the satisfaction that comes to all who conquer self and force Life to pay whatever is asked.”

In the end, this book is about conquering self. And self is all that is standing in the way of my success, my riches. There are no other real obstacles.

Think And Grow Rich – Chapter 14: The Sixth Sense: The Door to the Temple of Wisdom

Continuing my analysis of Think and Grow Rich.

This is for Chapter 14, The Sixth Sense: The Door to the Temple of Wisdom.

(Go here to start from the beginning.)

Quote and Analysis

“THE “thirteenth” principle is known as the SIXTH SENSE, through which Infinite Intelligence may, and will communicate voluntarily, without any effort from, or demands by, the individual.”

To dismiss any ambiguity, he is indeed saying that by following this philosophy you will receive messages from Infinite Intelligence.

And further, these messages will come to you without you having to request them. They will be messages that tell you what you need to know to take advantage of an opportunity, or avoid an impending danger. These messages will come as “hunches”.

Quote and Analysis

“This principle is the apex of the philosophy. It can be assimilated, understood, and applied ONLY by first mastering the other twelve principles.”

The other 12 principles are Desire, Faith, Auto-Suggestion, Specialized Knowledge, Imagination, Organized Planning, Decision, Persistence, Power of the Master Mind, Mystery of Sex Transmutation, Subconscious Mind, and the Brain.

Quote and Analysis

“The SIXTH SENSE is that portion of the subconscious mind which has been referred to as the Creative Imagination. It has also been referred to as the “receiving set” through which ideas, plans, and thoughts flash into the mind. The “flashes” are sometimes called “hunches” or “inspirations.””

These messages are hunches or inspirations. Not necessarily voices that speak to you in words, but a feeling or an idea that pops into your mind.

Quote and Analysis

“My experience has taught me that the next best thing to being truly great, is to emulate the great, by feeling and action, as nearly as possible.”

Note that he mentions not only action, but feeling. You need to foster the same feelings as the person you are emulating, the person you want to be like. This would also include adopting that person’s beliefs.

Quote and Analysis

“Every night, over a long period of years, I held an imaginary Council meeting with this group whom I called my “Invisible Counselors.”

My method of addressing the members of the imaginary Cabinet would vary, according to the traits of character in which I was, for the moment, most interested in acquiring. I studied the records of their lives with painstaking care. After some months of this nightly procedure, I was astounded by the discovery that these imaginary figures became, apparently real.”

I found this fascinating. He basically studied these people to the point where he could “simulate” them in his head. And he would ask them for the positive parts of their personalities that he wanted to emulate.

Now, consider how you probably use this exact method even more often AGAINST yourself. Think about how often you’ll have an argument with someone from your past in your head. How you’ll imagine what you should have said, or what you would do if you saw them again. All of this is mentally practicing negative personality traits.

Quote and Analysis

“You, of course, have recognized that this chapter covers a subject with which a majority of people are not familiar. The Sixth Sense is a subject that will be of great interest and benefit to the person whose aim is to accumulate vast wealth, but it need not claim the attention of those whose desires are more modest.”

Kind of an interesting point…you don’t have to use this principle if you only want modest wealth.

Quote and Analysis

“The sixth sense is not something that one can take off and put on at will. Ability to use this great power comes slowly, through application of the other principles outlined in this book. Seldom does any individual come into workable knowledge of the sixth sense before the age of forty. More often the knowledge is not available until one is well past fifty, and this, for the reason that the spiritual forces, with which the sixth sense is so closely related, do not mature and become usable except through years of meditation, self-examination, and serious thought.”

So if you put proportionately more time into meditation, self-examination, and serious thought, then you could get there faster than age 40 or 50.

Quote and Analysis

“Having read the chapter, you must have observed that while reading it, you were lifted to a high level of mental stimulation. Splendid! Come back to this again a month from now, read it once more, and observe that your mind will soar to a still higher level of stimulation. Repeat this experience from time to time, giving no concern as to how much or how little you learn at the time, and eventually you will find yourself in possession of a power that will enable you to throw off discouragement, master fear, overcome procrastination, and draw freely upon your imagination. Then you will have felt the touch of that unknown “something” which has been the moving spirit of every truly great thinker leader, artist, musician, writer, statesman. Then you will be in position to transmute your DESIRES into their physical or financial counterpart as easily as you may lie down and quit at the first sign of opposition.”

This is another of the pieces of the book that encourage “repetition” and “persistence”, telling you to come back and read it again.

Also, this is a description of what experiencing the Sixth Sense will feel like….no discouragement, no fear, no procrastination, and expansive imagination…and things will work for you without effort.

Quote and Analysis

“FAITH VS. FEAR!

Previous chapters have described how to develop FAITH, through Auto-suggestion, Desire and the Subconscious. The next chapter presents detailed instructions for the mastery of FEAR.

Here will be found a full description of the six fears which are the cause of all discouragement, timidity, procrastination, indifference, indecision, and the lack of ambition, self-reliance, initiative, self-control, and enthusiasm.

Search yourself carefully as you study these six enemies, as they may exist only in your subconscious mind, where their presence will be hard to detect.

Remember, too, as you analyze the “Six Ghosts of Fear,” that they are nothing but ghosts because they exist only in one’s mind.

Remember, also, that ghosts-creations of uncontrolled imagination-have caused most of the damage people have done to their own minds, therefore, ghosts can be as dangerous as if they lived and walked on the earth in physical bodies.”

Here is a list of qualities that are clues to fears you might harbor. If any of these are feelings or qualities you experience, it would be good to analyze why and what fear is behind it. And since Faith is the opponent of Fear, you can then identify which belief it is that you need to change to remove the Fear. And then you can use Auto-Suggestion to install that belief in yourself, and overcome the limiting quality.

He also points out here that our imaginings can cause damage to ourselves similar to what I noted above with the mental arguments. It is our own choice whether we choose to imagine empowering situations or disempowering ones.

No Lose Stocks / Options Trading 2015 Option Expiration Review

January expiration just passed, so it’s time do a review of the returns for my options trading system.

For some background, I don’t count a trade as a winner/loser until it’s sold, or expires. So I gauge the returns of my system based on all the trades that expire on the same expiration date. So my reporting lags about 2 years, meaning I currently have trades in my portfolio that will expire in 2017. I won’t know until then how well I’m doing now.

Here’s the review of the January 2014 expiration trades.

OPTIONS PURCHASED TO OPEN TRADE

Contract $/Contract Buy Date
JNJ 150117C00095000 $0.4 9/26/2012
XOM 150117C00135000 $0.36 10/12/2012
PG 150117C00095000 $0.32 10/22/2012
AVP 150117C00025000 $0.55 10/23/2012
CSCO 150117C00025000 $0.74 10/25/2012
WMT 150117C00100000 $0.33 11/19/2012
WIN 150117C00012000 $0.25 12/20/2012
KO 150117C00050000 $0.31 12/31/2012
T 150117C00045000 $0.3 1/2/2013
GE 150117C00030000 $0.26 1/10/2013
DELL 150117C00017000 $0.11 1/17/2013
RTN 150117C00075000 $0.22 1/30/2013
CTL 150117C00060000 $0.05 1/31/2013
TGT 150117C00090000 $0.13 1/31/2013
MRK 150117C00055000 $0.51 2/4/2013
MO 150117C00045000 $0.21 2/5/2013
LMT 150117C00115000 $0.55 2/5/2013
SYY 150117C00040000 $0.3 2/6/2013
BP 150117C00060000 $0.31 2/13/2013
SO 150117C00055000 $0.21 2/14/2013
DD 150117C00065000 $0.33 2/19/2013
DD 150117C00065000 $0.33 2/19/2013
PFE 150117C00040000 $0.1 2/21/2013
MCD 150117C00140000 $0.22 3/8/2013
RAI 150117C00055000 $0.35 3/11/2013
PPL 150117C00037000 $0.4 3/15/2013
VZ 150117C00070000 $0.17 3/15/2013
LLY 150117C00075000 $0.43 3/27/2013
LO 150117C00058330 $0.29 4/1/2013
CAG 150117C00050000 $0.1 4/2/2013
GIS 150117C00065000 $0.23 4/10/2013
NEE 150117C00100000 $0.39 4/15/2013
WM 150117C00055000 $0.2 5/2/2013
POT 150117C00060000 $0.5 5/6/2013
DUK 150117C00090000 $0.6 5/14/2013
AEP 150117C00060000 $0.25 5/28/2013
TRV Jan 17 2015 110.00 Call $0.55 8/6/2013
WMT Jan 17 2015 95.00 Call $0.52 8/23/2013
K Jan 17 2015 80.00 Call $0.39 8/29/2013
MMM Jan 17 2015 155.00 Call $0.77 9/23/2013
PG Jan 17 2015 95.00 Call $0.71 10/4/2013
BBT Jan 17 2015 45.00 Call $0.18 10/29/2013
LLY Jan 17 2015 65.00 Call $0.36 11/4/2013
KRFT Jan 17 2015 70.00 Call $0.45 11/6/2013
SO Jan 17 2015 50.00 Call $0.32 11/6/2013
TGT Jan 17 2015 80.00 Call $0.82 11/6/2013
TWC Jan 17 2015 165.00 Call $0.50 12/23/2013
KMP Jan 17 2015 97.50 Call $0.29 12/24/2013

OPTIONS SOLD TO CLOSE TRADE

Contract $/Contract Sell Date
CSCO 150117C00025000 $2.88 7/9/2013
LMT 150117C00115000 $7.8 7/18/2013
RTN Jan 17 2015 75.00 Call $6.08 8/5/2013
JNJ Jan 17 2015 95.00 Call $5.13 11/20/2013
SYY Jan 17 2015 40.00 Call $2.10 12/9/2013
MRK Jan 17 2015 55.00 Call $3.33 2/5/2014
DD Jan 17 2015 65.00 Call $4.25 2/18/2014
RAI Jan 17 2015 55.00 Call $2.91 3/3/2014
LO Jan 17 2015 58.33 Call $2.91 3/4/2014
NEE Jan 17 2015 100.00 Call $2.70 3/17/2014
LLY Jan 17 2015 65.00 Call $2.12 7/24/2014
WIN Jan 17 2015 12.00 Call $1.16 7/29/2014
KMP Jan 17 2015 97.50 Call $1.74 8/11/2014
MO Jan 17 2015 45.00 Call $1.23 9/19/2014
MMM Jan 17 2015 155.00 Call $3.75 11/4/2014
LLY Jan 17 2015 75.00 Call $1.59 12/11/2014
AEP Jan 17 2015 60.00 Call $0.95 12/19/2014
PPL Jan 17 2015 37.00 Call $0.50 12/24/2014
SO Jan 17 2015 50.00 Call $0.49 12/24/2014

Summary

I purchased 48 options in the period from September 26, 2012 through December 24, 2013.

I sold 19 options when the underlying stock reached its strike price before the January 2015 expiration date.

That leaves 29 trades that expired worthless.

Note how painful that sounds…I didn’t even win 50% of the time. I was wrong more than half the time. But I don’t watch my portfolio, so I had no idea. I only got the notifications of the wins. And those are quite fun to get.

I purchased to open $1717/contract in trades, with $5 * 48 = $240 in commissions, (I’m estimating $5 per trade), for a total of $1957 paid out.

I sold to close $5362/contract, with $5 * 19 = $95 in commissions for a total of $5267 in deposits.

That means my return from September 26, 2012 through January 2015 was ($5267 – $1957)/$1957 = 169%…or roughly 75% per year.

I was wrong more than half the time, but I made more than 75% per year while doing it.

Also note that by 11/20/2013, the winning trades had already paid for all of the trades I would place in this group. Any trades that paid off in the year after that were pure profit.

It’s okay to be wrong…what matters is the magnitude of the times you are right, and the minimizing of the pain from the times you are wrong.

Note the opposite could also happen…being right 99% of the time, but those 1% wrong times could wipe you out.

Think And Grow Rich – Chapter 13: The Brain: A Broadcasting and Receiving Station for Thought

Continuing my analysis of Think and Grow Rich.

This is for Chapter 13, The Brain: A Broadcasting and Receiving Station for Thought.

(Go here to start from the beginning.)

Quote and Analysis

“Through the medium of the ether, in a fashion similar to that employed by the radio broadcasting principle, every human brain is capable of picking up vibrations of thought which are being released by other brains.

In connection with the statement in the preceding paragraph, compare, and consider the description of the Creative Imagination, as outlined in the chapter on Imagination.”

Here’s the description from the chapter on Imagination:

“CREATIVE IMAGINATION: -Through the faculty of creative imagination, the finite mind of man has direct communication with Infinite Intelligence. It is the faculty through which “hunches” and “inspirations” are received. It is by this faculty that all basic, or new ideas are handed over to man.

It is through this faculty that thought vibrations from the minds of others are received. It is through this faculty that one individual may “tune in,” or communicate with the subconscious minds of other men.”

Quote and Analysis

“The Creative Imagination is the “receiving set” of the brain, which receives thoughts, released by the brains of others. It is the agency of communication between one’s conscious, or reasoning mind, and the four sources from which one may receive thought stimuli.”

Here are the four sources from the chapter on Sex Transmutation:

“1. Infinite Intelligence

2. One’s subconscious mind, wherein is stored every sense impression and thought impulse which ever reached the brain through any of the five senses

3. From the mind of some other person who has just released the thought, or picture of the idea or concept, through conscious thought, or

4. From the other person’s subconscious storehouse.“

Quote and Analysis

“When stimulated, or “stepped up” to a high rate of vibration, the mind becomes more receptive to the vibration of thought which reaches it through the ether from outside sources. This “stepping up” process takes place through the positive emotions, or the negative emotions. Through the emotions, the vibrations of thought may be increased. “

Essentially, this is saying, if you want to have more creative ideas, then you need to harness your emotions in order to stimulate your mind.

Note he references either positive or negative emotions here.

Quote and Analysis

“Vibrations of an exceedingly high rate are the only vibrations picked up and carried, by the ether, from one brain to another.”

So if you want to disseminate your ideas to others, and get them to act on them, then you need to also infuse your own ideas with emotion. Specifically strong emotion. Otherwise the thoughts will not be “carried” to others, or to Infinite Intelligence.

Note this is different than the previous quote. The previous quote is about receiving “inspired” ideas or hunches to help you achieve your goals. This quote is about spreading your ideas to others to help you achieve your goals.

So when you have a goal, you can go at it from two directions here.

You can stimulate your mind with positive (or negative) emotions to receive “inspired” ideas to move you toward achieving that goal.

And you can come up with some ideas that you would like to pass to other people that would help you achieve your goal. Say you are selling something. You could infuse the idea of wanting to buy that thing with emotion, which would then transmit that idea to other people’s subconscious minds. And then it would bubble up in to their conscious minds. And then they would seek you out to buy your something.

Quote and Analysis

“The emotion of sex stands at the head of the list of human emotions, as far as intensity and driving force are concerned. The brain which has been stimulated by the emotion of sex, vibrates at a much more rapid rate than it does when that emotion is quiescent or absent.

The result of sex transmutation, is the increase of the rate of vibration of thoughts to such a pitch that the Creative Imagination becomes highly receptive to ideas, which it picks up from the ether.”

I’m still not sure I fully understand what he means by the “emotion of sex”, but my assumption is that he means we should think about doing things as if we were going to get sex in return. And when we think that way, we’ll get much more creative about how to solve whatever it is that we have put sex on the other side of. The intense energy that comes from sexual desire will stimulate our minds to be more receptive to “inspired” ideas from those 4 sources mentioned above.

Quote and Analysis

“On the other hand, when the brain is vibrating at a rapid rate, it not only attracts thoughts and ideas released by other brains through the medium of the ether, but it gives to one’s own thoughts that “feeling” which is essential before those thoughts will be picked up and acted upon by one’s subconscious mind.”

Here’s a further benefit of infusing emotion into a thought or idea…or giving them that “feeling”.

Our subconscious mind controls most of what we do.

Think about driving. Most of the time we get to our destination without even remembering how we drove there, but the whole way there our subconscious mind was making small decisions and directing our body to carry out those decisions.

Now, what if you could program your subconscious mind to carry out the tasks that you knew would get you to your goal? Maybe you don’t consciously do them because you are afraid (like making cold calls). Or maybe you are too lazy and just can’t force yourself to do them.

What if it was the opposite…what if you couldn’t force yourself NOT to do them?

That’s what it feels like to have your subconscious on your side. It just automatically drives you to the destination…to your goal.

And you get that benefit by infusing your ideas, thoughts, goals, and aims with emotion. Your subconscious picks up on that emotion and says “this is important…so I better make sure it gets done!”

Quote and Analysis

“Through the instructions described in the chapter on auto-suggestion, you were definitely informed of the method by which DESIRE may be transmuted into its monetary equivalent.”

The method, in short, is to write down your goal, memorize it, and say it aloud twice a day with feeling…that is, with emotion. And from the previous quote, this will then transmit that desire to your subconscious so it can start helping you to work toward that goal or desire.

Quote and Analysis

“Operation of your mental “broadcasting” station is a comparatively simple procedure. You have but three principles to bear in mind, and to apply, when you wish to use your broadcasting station-the SUBCONSCIOUS MIND, CREATIVE IMAGINATION, and AUTO-SUGGESTION. The stimuli through which you put these three principles into action have been described-the procedure begins with DESIRE.”

Here’s the lifecycle…

Desire – What do you want? Be specific. Write it down.

Auto-Suggestion – Twice a day, repeat it aloud. Feel it (this is where being specific helps). Infuse it with emotion. Feel good about it. Think about how much sex you’ll get when you have that desire.

Subconscious Mind – The auto-suggestion will pass that desire to your subconscious mind. The subconscious mind will start helping you to do the things that will get you there automatically. But it will also pass that desire on to others that can help you with it. And it will pass it on to Infinite Intelligence.

Creative Imagination – Once Infinite Intelligence gets a hold of your desire, it passes you back some “inspired” ideas about how to go about achieving that desire, and making it real. If you have strong emotions, so your mind is vibrating at a high degree, then you’ll be able to receive those ideas. And those ideas will pop up into your conscious thoughts as creative imaginings.

So that’s the whole deal. The other principles help boost these, but this is the core methodology.

“Whatever the mind of man can conceive and believe, the mind of man can achieve.”

Conceive your desire. Believe you will have it and feel good with that thought (no doubt), have faith. And the process above will hand you back the “inspired” ideas and plans to make it a reality, so you will have achieved what you conceived.

Quote and Analysis

“The procedure is very simple. We sit down at a conference table, clearly state the nature of the problem we have under consideration, then begin discussing it. Each contributes whatever thoughts that may occur. The strange thing about this method of mind stimulation is that it places each participant in communication with unknown sources of knowledge definitely outside his own experience. If you understand the principle described in the chapter on the Master Mind, you of course recognize the round-table procedure here described as being a practical application of the Master Mind. This method of mind stimulation, through harmonious discussion of definite subjects, between three people, illustrates the simplest and most practical use of the Master Mind. By adopting and following a similar plan any student of this philosophy may come into possession of the famous Carnegie formula briefly described in the introduction. If it means nothing to you at this time, mark this page and read it again after you have finished the last chapter.”

This is a description of exactly how to use the Master Mind principle for problem solving.

An interesting point is that in this case the problems they are trying to solve are not even their own problems.

Also, each contributes whatever thought may occur. That’s a pretty trusting situation. In most settings, we hold back most of our thoughts for fear of what someone else at the table might say.

No Lose Stocks / Options Trading 2014 Option Expiration Review

A friend recently asked what returns my options trading system was generating, and I realized I hadn’t done a review of the trades that expired in January of this year (2014).

For some background, I don’t count a trade as a winner/loser until it’s sold, or expires. So I gauge the returns of my system based on all the trades that expire on the same expiration date. So my reporting lags about 2 years, meaning I currently have trades in my portfolio that will expire in 2016. I won’t know until then how well I’m doing now.

Here’s the review of the January 2013 expiration trades.

OPTIONS PURCHASED TO OPEN TRADE

@PG 140118C00080000 $0.4 Jan 22nd, 09:30
@ED 140118C00070000 $0.2 Dec 27th 2012, 09:30
@MCD 140118C00110000 $0.44 Nov 29th 2012, 09:32
@MO 140118C00040000 $0.24 Nov 7th 2012, 09:55
@DUK 140118C00075000 $0.65 Oct 25th 2012, 09:30
@JNJ 140118C00090000 $0.15 Sep 27th 2012, 09:30
@CL 140118C00140000 $0.58 Sep 27th 2012, 09:30
@MO 140118C00045000 $0.22 Sep 24th 2012, 09:31
@KO 140118C00052500 $0.12 Aug 21st 2012, 11:51
@BMY 140118C00042000 $0.28 Aug 10th 2012, 09:30
@PEP 140118C00095000 $0.19 Aug 7th 2012, 14:07
@PAYX 140118C00040000 $0.45 Jun 29th 2012, 09:30
@SLE 140118C00022000 $0.45 Jun 12th 2012, 09:31
@KFT 140118C00050000 $0.49 May 18th 2012, 09:30
@RAI 140118C00055000 $0.3 Mar 23rd 2012, 09:30
@CTL 140118C00050000 $0.4 Mar 19th 2012, 09:31
@VZ 140118C00050000 $0.45 Mar 7th 2012, 09:30
@T 140118C00040000 $0.3 Mar 7th 2012, 09:30
@PFE 140118C00030000 $0.24 Feb 28th 2012, 09:30

OPTIONS SOLD TO CLOSE TRADE

PAYX Jan 18 2014 40.00 Call $1.8 8/5/2013
@JNJ 140118C00090000 $3.5 Jul 15th, 12:38
@DUK 140118C00075000 $2.25 Apr 24th, 15:20
@BMY 140118C00042000 $2.67 Apr 23rd, 09:56
@MDLZ1 140118C00050000 $0.65 Apr 19th, 11:06
@HSH1 140118C00022000 $0.6 Apr 17th, 14:23
@PG 140118C00080000 $2.99 Apr 12th, 09:31
@PFE 140118C00030000 $1.58 Apr 11th, 10:53
@VZ 140118C00050000 $2.41 Apr 11th, 10:52

Summary

I purchased 19 options in the period from Feb 28, 2012 through January 22nd 2013.

I sold 9 options when the underlying stock reached its strike price before the January 2014 expiration date.

That leaves 10 trades that expired worthless.

Note how painful that sounds…I didn’t even win 50% of the time. I was wrong more than half the time. But I don’t watch my portfolio, so I had no idea. I only got the notifications of the wins. And those are quite fun to get.

I purchased to open $6.55 * 100 = $655 in trades, with $5 * 19 = $95 in commissions, (I’m estimating $5 per trade), for a total of $750 paid out.

I sold to close $18.45 * 100 = $1845, with $5 * 9 = $45 in commissions for a total of $1800 in deposits.

That means my return from February 28, 2012 through January 2014 was ($1800 – $750)/$750 = 140%…or roughly 70% per year.

I was wrong more than half the time, but I made more than 70% per year while doing it.

It’s okay to be wrong…what matters is the magnitude of the times you are right, and the minimizing of the pain from the times you are wrong.

Note the opposite could also happen…being right 99% of the time, but those 1% wrong times could wipe you out.

Think And Grow Rich – Chapter 12: The Subconscious Mind: The Connecting Link

Continuing my analysis of Think and Grow Rich.

This is for Chapter 12, The Subconscious Mind: The Connecting Link.

(Go here to start from the beginning.)

Quote and Analysis

“The Subconscious Mind: The Connecting Link”

The “connecting link” is between your conscious mind and Infinite Intelligence. Infinite Intelligence is what provides you with inspired ideas and plans.

Quote and Analysis

“THE SUBCONSCIOUS MIND consists of a field of consciousness, in which every impulse of thought that reaches the objective mind through any of the five senses, is classified and recorded, and from which thoughts maybe recalled or withdrawn as letters may be taken from a filing cabinet.

It receives, and files, sense impressions or thoughts, regardless of their nature. You may VOLUNTARILY plant in your subconscious mind any plan, thought, or purpose which you desire to translate into its physical or monetary equivalent. The subconscious acts first on the dominating desires which have been mixed with emotional feeling, such as faith.

Consider this in connection with the instructions given in the chapter on DESIRE, for taking the six steps there outlined, and the instructions given in the chapter on the building and execution of plans, and you will understand the importance of the thought conveyed.”

In the chapter on Desire (Chapter 2), the six steps are essentially: be specific about what you want, choose something to give in return, choose a date, create a plan (and begin to put it into action), write out a clear and concise statement of these points, and read that statement aloud twice daily before bed and when you awake…and as you read, see and feel yourself already in possession of the money. (Again, it doesn’t have to be “money”, it could be anything you want.)

In doing that last step of reading the written statement aloud, you get the statement via the senses of sight and hearing. Then you “feel” yourself already in possession of it as well…that is you infuse the desire with emotional feeling. So now you have passed this idea through your senses with emotional feeling to your subconscious which means your subconscious will start to act on it and translate the idea into its physical equivalent. That’s why reading it aloud and feeling it matters so much.

Quote and Analysis

“You cannot entirely control your subconscious mind, but you can voluntarily hand over to it any plan, desire, or purpose which you wish transformed into concrete form. Read, again, instructions for using the subconscious mind, in the chapter on autosuggestion.”

The instructions in the chapter on autosuggestion (Chapter 4) are all about taking that written statement, reading it aloud twice a day, and visualizing (“seeing”) yourself already in possession of what you want. And doing this with “FAITH”, which is the emotion of confidence (or belief or certainty) that tells the subconscious to act.

Quote and Analysis

“MAKE YOUR DESIRES CLEAR, AND TO REDUCE THEM TO WRITING.”

If the desires are not clear, then you can’t imagine what they will feel like. By reducing them to writing you make sure they are clear enough. And you can repeatedly review them, day and night. The physical piece of paper will remind you to repeatedly review them.

Quote and Analysis

“You will also understand the necessity of PERSISTENCE in carrying out instructions.”

In autosuggestion (Chapter 4), the point is made that “…the subconscious mind takes any orders given it in a spirit of absolute FAITH, and acts upon those orders, although the orders often have to be presented over and over again, through repetition, before they are interpreted by the subconscious mind.”

So if you don’t do it twice a day. And you don’t persistently invoke belief/confidence/certainty/faith when you do, then you won’t get the results.

Quote and Analysis

“The thirteen principles are the stimuli with which you acquire the ability to reach, and to influence your subconscious mind. Do not become discouraged, if you cannot do this upon the first attempt. Remember that the subconscious mind maybe voluntarily directed only through habit, under the directions given in the chapter on FAITH. You have not yet had time to master faith. Be patient. Be persistent.”

The mastery of faith/belief/confidence/certainty comes through use and practice. Practice is persistently trying to do something even when it’s not working perfectly.

Quote and Analysis

“A good many statements in the chapters on faith and auto-suggestion will be repeated here, for the benefit of YOUR subconscious mind. Remember, your subconscious mind functions voluntarily, whether you make any effort to influence it or not. This, naturally, suggests to you that thoughts of fear and poverty, and all negative thoughts serve as stimuli to your subconscious mind, unless, you master these impulses and give it more desirable food upon which it may feed.”

This is simply a reminder to craft your environment and to weed out sources of negative perspectives like news, negative people, advertising, etc. And conversely to spend more time with positive perspectives.

Quote and Analysis

“The subconscious mind will not remain idle! If you fail to plant DESIRES in your subconscious mind, it will feed upon the thoughts which reach it as the result of your neglect. We have already explained that thought impulses, both negative and positive are reaching the subconscious mind continuously, from the four sources which were mentioned in the chapter on Sex Transmutation.”

Here’s the part where he talks about this in Sex Transmutation (Chapter 11):
“When ideas or concepts flash into one’s mind, through what is popularly called a “hunch,” they come from one or more of the following sources :-

1. Infinite Intelligence

2. One’s subconscious mind, wherein is stored every sense impression and thought impulse which ever reached the brain through any of the five senses

3. From the mind of some other person who has just released the thought, or picture of the idea or concept, through conscious thought, or

4. From the other person’s subconscious storehouse.”

So even if you don’t think something is going to affect you, like say a violent movie, it does. It might be ever so slightly each time, but the cumulative effect builds over time and overwhelms the intentionally positive perspective that you are trying to build.

Quote and Analysis

“For the present, it is sufficient if you remember that you are living daily, in the midst of all manner of thought impulses which are reaching your subconscious mind, without your knowledge. Some of these impulses are negative, some are positive. You are now engaged in trying to help shut oil the flow of negative impulses, and to aid in voluntarily influencing your subconscious mind, through positive impulses of DESIRE.

When you achieve this, you will possess the key which unlocks the door to your subconscious mind. Moreover, you will control that door so completely, that no undesirable thought may influence your subconscious mind.”

So that’s the ability we’re shooting for. A control of our mental attitude so completely that no matter the circumstances we find ourselves in, we feel good, we feel positive. We are able to gloss over and ignore the “negative” influences. (I put negative in quotes because a thing is only negative or positive based on your perception of it. You have the ability to decide if something is negative or positive.)

Quote and Analysis

“All thought impulses, intended for transmutation into their physical equivalent, voluntarily planted in the subconscious mind, must pass through the imagination, and be mixed with faith. The “mixing” of faith with a plan, or purpose, intended for submission to the subconscious mind, maybe done ONLY through the imagination.”

This is again just telling us that we have to imagine ourselves in the situation that we want to be in. We have to think about what our senses would sense in that situation using our imagination. And that imagining makes it feel real and gives us faith/confidence/belief/certainty that it will happen.

Quote and Analysis

“You are preparing yourself to influence and control the “inner audience” of your subconscious mind, in order to hand over to it the DESIRE for money, which you wish transmuted into its monetary equivalent. It is essential, therefore, that you understand the method of approach to this “inner audience.” You must speak its language, or it will not heed your call. It understands best the language of emotion or feeling. Let us, therefore describe here the seven major positive emotions, and the seven major negative emotions, so that you may draw upon the positives, and avoid the negatives, when giving instructions to your subconscious mind.

THE SEVEN MAJOR POSITIVE EMOTIONS

The emotion of DESIRE

The emotion of FAITH

The emotion of LOVE

The emotion of SEX

The emotion of ENTHUSIASM

The emotion of ROMANCE

The emotion of HOPE

There are other positive emotions, but these are the seven most powerful, and the ones most commonly used in creative effort. Master these seven emotions (they can be mastered only by USE), and the other positive emotions will be at your command when you need them. Remember, in this connection, that you are studying a book which is intended to help you develop a “money consciousness” by filling your mind with positive emotions. One does not become money conscious by filling one’s mind with negative emotions.”

BOOM. You are studying a book which is intended to help you develop a “money consciousness” by filling your mind with positive emotions. That’s it. Your whole job is to fill your mind with positive emotions.

And these positive emotions can only be mastered through USE!

So how do you “use” an emotion?

You practice it.

You close your eyes and imagine a situation that fills you with that particular emotion. Do this daily around the same time of day. It’s a kind of meditation. And notice how your body feels, and what position it naturally takes when you feel that way.

For example, when you feel faith/confidence/belief/certainty, you probably put your shoulders back and puff out your chest some.

Then after some days of practicing a particular emotion you won’t need to imagine the situation any more, you’ll just be able to call up the emotion at will or by putting your body in the position that gives you that fosters that feeling.

Then when you are meditating and “feeling” your Definite Chief Aim, the amount of money or whatever it is that you want, you can just call up the faith/confidence emotion and know that that reality is on it’s way.

Quote and Analysis

“THE SEVEN MAJOR NEGATIVE EMOTIONS (To be avoided)

The emotion of FEAR

The emotion of JEALOUSY

The emotion of HATRED

The emotion of REVENGE

The emotion of GREED

The emotion of SUPERSTITION

The emotion of ANGER”

What I find interesting about these is that Faith (Confidence/Belief/Certainty) and Love are enough to put them all down.

Faith/Belief/Confidence conquers Fear, Superstition, Anger, and Greed. If you’re sure you’re going to succeed at your endeavor then there is no Fear. You might be curious about how it’s all going to unfold in your favor given the current circumstances, but there is no doubt that it will, so there’s no fear.

Superstition is a belief that something outside of you has some control over you or your circumstances. Confidence that this is not true erases that.

Anger is just a response to Fear. If you’re angry, then you are fearful that something can do something to you that you can’t stop. If you were confident that you could stop it, or survive it, or even flourish in that circumstance, then there would be no anger.

And finally Greed is the fear that there isn’t enough so you have to hoard it, rather than the confidence/belief/faith/certainty that you can create everything that you need or want.

Love conquers the rest…jealousy, hatred, revenge. These are all attacks on someone or something else. If you have love for all humanity (as the Self-Confidence formula from this book affirms), then you are not jealous, hateful, or vengeful. You simply want everyone to be happy. You have positive intentions toward everyone.

So if you practice the emotions of feeling Faith/Belief/Confidence/Certainty that you will flourish…not just survive, but flourish in whatever circumstances come your way, and you practice Love for all humanity, then you’ve wiped out all the negatives and the only thing you’ll feel are positives. Which brings us to…

Quote and Analysis

“Positive and negative emotions cannot occupy the mind at the same time. One or the other must dominate. It is your responsibility to make sure that positive emotions constitute the dominating influence of your mind. Here the law of HABIT will come to your aid.

Form the habit of applying and using the positive emotions! Eventually, they will dominate your mind so completely, that the negatives cannot enter it.

Only by following these instructions literally, and continuously, can you gain control over your subconscious mind. The presence of a single negative in your conscious mind is sufficient to destroy all chances of constructive aid from your subconscious mind.”

There you go. Confidence and Love will tip the balance in your favor.

Quote and Analysis

“Less than a hundred years ago, men believed the lightning to be evidence of the wrath of God, and feared it. Now, thanks to the power of FAITH, men have harnessed the lightning and made it turn the wheels of industry.”

What I find interesting about this statement is how it shows the idea of turning adversity into advantage, fear as a stepping stone to success. The feared lightning becomes the path forward to abundance for all.

Whatever it is you fear if you confidently stare it in the face and find out what it’s all about, you will likely find something valuable that you can use there. If for no other reason than that everyone else is so scared of it they have never taken the opportunity to figure it out. They’ve always run away before they could understand and harness the opportunity there.

Quote and Analysis

“Moreover, the approach can be made only by the individual himself. Paid prayers are worthless. Infinite Intelligence does no business by proxy. You either go direct, or you do not communicate.”

I’m always looking for shortcuts (or smart-cuts if you will), so this is something I needed to hear in particular.

Quote and Analysis

“The subconscious mind is the intermediary, which translates one’s prayers into terms which Infinite Intelligence can recognize, presents the message, and brings back the answer in the form of a definite plan or idea for procuring the object of the prayer.”

So here’s the expected result. You decide what you want. You believe that it will be yours. That it’s already on its way to you. And you repeatedly review that specific desire. Your subconscious takes that desire, and passes it on to Infinite Intelligence. Infinite Intelligence then passes back a plan or idea about how to go about getting that desire in the most efficient way possible. It might not be the exact way you thought it would or should happen, but it will be the best way. For this reason, when you receive a plan or idea, be open-minded about how it could lead to what you desire…or something even better.

Think And Grow Rich – Chapter 11: The Mystery of Sex Transmutation

Continuing my analysis of Think and Grow Rich.

This is for Chapter 11, The Mystery of Sex Transmutation.

(Go here to start from the beginning.)

Quote and Analysis

“Sex transmutation is simple and easily explained. It means the switching of the mind from thoughts of physical expression, to thoughts of some other nature.”

Here’s my disclaimer for this chapter: I’m not sure I get what he means by “sex transmutation”.

He can’t JUST mean “switching of the mind” because that’s easily accomplished by being hungry instead. Eating trumps sex when you don’t have food.

My guess is that he means rechanneling the energy that would normally go into pursuing sex to pursuing a greater purpose.

During the rest of the analyses for this chapter I’ll be looking for clues to what it is that he really means here, and how to do it.

Quote and Analysis

“The transmutation of sex energy calls for the exercise of will-power, to be sure, but the reward is worth the effort.”

So we will need willpower to make this work. So we are going to be “pushing against” something.

So it’s not the same as a more pressing concern (for example, hunger or thirst) taking precedence, since that doesn’t require willpower.

I don’t know though what the thing is that we are trying to avoid, or trying to force ourselves to do with the willpower.

Quote and Analysis

“The emotion of sex is an “irresistible force,” against which there can be no such opposition as an “immovable body.” When driven by this emotion, men become gifted with a super power for action. Understand this truth, and you will catch the significance of the statement that sex transmutation will lift one to the status of a genius.”

So one of the benefits of being able to transmute sex is that you can be gifted with a super power for action. Specifically action.

And then it’s almost like he’s linking action with genius. Which I can definitely buy. The more I do, the more I know, and the smarter I look to someone that isn’t doing or trying.

Quote and Analysis

“The desire for sex expression comes at the head of the list of stimuli, which most effectively “stepup” the vibrations of the mind and start the “wheels” of physical action. Eight of these stimuli are natural and constructive. Two are destructive. The list is here presented for the purpose of enabling you to make a comparative study of the major sources of mind stimulation. From this study, it will be readily seen that the emotion of sex is, by great odds, the most intense and powerful of all mind stimuli.”

Here he calls it “the desire for sex expression”. That seems different than just a desire for sex. But I’m not sure exactly how.

He gives a list of stimuli, but he says here that the emotion of sex is the most intense and powerful by great odds…so I’m not going to worry about the others.

Again he notes that the goal here is to start the “wheels” of physical action.

Quote and Analysis

“A better definition of a genius is, “a man who has discovered how to increase the vibrations of thought to the point where he can freely communicate with sources of knowledge not available through the ordinary rate of vibration of thought.””

This was also discussed in the chapter on Imagination.

He’s talking here about communicating with Infinite Intelligence.

And he’s saying that the way to get access to Infinite Intelligence is to increase the “energy”, the vibrations of thought through a stimuli, like the emotion of sex.

I’m still not sure what “the emotion of sex” is though.

Quote and Analysis

“The faculty of creative imagination is the direct link between the finite mind of man and Infinite Intelligence. All so-called revelations, referred to in the realm of religion, and all discoveries of basic or new principles in the field of invention, take place through the faculty of creative imagination.”

So when you are using the emotion of sex to stimulate your mind to draw on Infinite Intelligence, you should be expecting insights of a new or fundamental nature. Not just a recombination of existing knowledge, but things that you might only have a hunch could work a particular way, but no solid reason why.

Quote and Analysis

“Moreover, while on this higher level of thought, the individual is not hampered or bound by any of the stimuli which circumscribe and limit his vision while wrestling with the problems of gaining the three basic necessities of food, clothing, and shelter. He is in a world of thought in which the ORDINARY, work-a-day thoughts have been as effectively removed as are the hills and valleys and other limitations of physical vision, when he rises in an airplane.”

So here again is a description of the quality of the thoughts you should be having.

It sounds similar to the “flow” state, where time seems to alter and the action or work just flows effortlessly.

Quote and Analysis

“The creative faculty becomes more alert and receptive to vibrations, originating outside the individual’s subconscious mind, the more this faculty is used, and the more the individual relies upon it, and makes demands upon it for thought impulses. This faculty can be cultivated and developed only through use.”

So this is a “practice”. It’s something you have to actively seek to use and exercise to get better at.

Quote and Analysis

“Dr. Elmer R. Gates…earned his living by “sitting for ideas” for individuals and corporations. Some of the largest corporations in America paid him substantial fees, by the hour, for “sitting for ideas.”

This chapter inspired me to look this guy up:
http://www.elmergates.com/

This guy really was a surreal inventor. He discovered things that we still haven’t fully explored or explained. His experiments with evolution are astoundingly interesting. (At least I think so…almost everyone I’ve tried to share the findings with thinks otherwise…)

He invented in multiple areas of science. Generally a person becomes familiar with one area and just sticks to it. But this guy was inventing across disciplines. He was working in acoustics, biology, chemistry, weather, weapons, gold mining, psychology, brain development, and more.

And he really did exercise this creative imagination. He would analyze everything he knew about a subject and try to find connections between different apparently unrelated ideas. And then he would just sit and wait in the dark with all other distractions removed. The room he would sit in was sound proof, light proof, UV proof, and was even up on shocks to remove external vibrations.

He wanted to know how to make the brain work better, so he investigated what the best environment was for the brain to work, and he viewed inventing as the best work that the brain could do.

Quote and Analysis

“The reasoning faculty is often faulty, because it is largely guided by one’s accumulated experience. Not all knowledge, which one accumulates through “experience,” is accurate. Ideas received through the creative faculty are much more reliable, for the reason that they come from sources more reliable than any which are available to the reasoning faculty of the mind.”

He’s saying to trust a hunch more than experience.

Quote and Analysis

“For example, the scientific inventor, or “genius, begins an invention by organizing and combining the known ideas, or principles accumulated through experience, through the synthetic faculty (the reasoning faculty). If he finds this accumulated knowledge to be insufficient for the completion of his invention, he then draws upon the sources of knowledge available to him through his creative faculty. The method by which he does this varies with the individual, but this is the sum and substance of his procedure:

1. HE STIMULATES HIS MIND SO THAT IT VIBRATES ON A HIGHER-THAN-AVERAGE PLANE, using one or more of the ten mind stimulants or some other stimulant of his choice.

2. HE CONCENTRATES upon the known factors (the finished part) of his invention, and creates in his mind a perfect picture of unknown factors (the unfinished part), of his invention. He holds this picture in mind until it has been taken over by the subconscious mind, then relaxes by clearing his mind of ALL thought, and waits for his answer to “flash” into his mind.

Sometimes the results are both definite and immediate. At other times, the results are negative, depending upon the state of development of the “sixth sense,” or creative faculty. Mr. Edison tried out more than 10,000 different combinations of ideas through the synthetic faculty of his imagination before he “tuned in” through the creative faculty, and got the answer which perfected the incandescent light. His experience was similar when he produced the talking machine.”

I’m copying this here for myself for use when I need to surmount a challenge.

Imagine using this for any challenge you might be facing. It doesn’t have to be an “invention”. It could be the solution to a relationship problem, a business issue, a health problem, or any other challenge that you want a solution to.

Quote and Analysis

“If good taste would permit, we might easily mention scores of men, well known to the American people, who climbed to great heights of achievement under the stimulating influence of their wives, only to drop back to destruction AFTER money and power went to their heads, and they put aside the old wife for a new one.”

Now we’re back into the specifics of the emotion of sex.

He’s linking it specifically to one particular woman, the “old wife”. So it has something to do with that relationship.

Quote and Analysis

“The human mind responds to stimulation! Among the greatest, and most powerful of these stimuli is the urge of sex. When harnessed and transmuted, this driving force is capable of lifting men into that higher sphere of thought which enables them to master the sources of worry and petty annoyance which beset their pathway on the lower plane.”

Again a hint of what it feels like to do this right. Your mind should be free of “worry and petty annoyance”.

Quote and Analysis

“I discovered, from the analysis of over 25,000 people, that men who succeed in an outstanding way, seldom do so before the age of forty, and more often they do not strike their real pace until they are well beyond the age of fifty. This fact was so astounding that it prompted me to go into the study of its cause most carefully, carrying the investigation over a period of more than twelve years.

This study disclosed the fact that the major reason why the majority of men who succeed do not begin to do so before the age of forty to fifty, is their tendency to DISSIPATE their energies through over indulgence in physical expression of the emotion of sex. The majority of men never learn that the urge of sex has other possibilities, which far transcend in importance, that of mere physical expression. The majority of those who make this discovery, do so after having wasted many years at a period when the sex energy is at its height, prior to the age of forty-five to fifty. This usually is followed by noteworthy achievement.”

If nothing else, this particular section is interesting because it reminds us that we don’t have to “succeed” early in life. No need to beat ourselves up about wasted time and energy.

Quote and Analysis

“The world is ruled, and the destiny of civilization is established, by the human emotions. People are influenced in their actions, not by reason so much as by “feelings.” The creative faculty of the mind is set into action entirely by emotions, and not by cold reason. The most powerful of all human emotions is that of sex.”

Emotions make us act. You can’t reason someone into action. But if you can make them feel a certain way, you can get them to move. The same is true of ourselves. If we can take control of our emotions, how we “feel” about something, then we can induce action.

If we know logically why we should do something, but we don’t feel like doing it, then it probably won’t happen. Like avoiding cookies.

If we feel like we should do something, but logically we know we shouldn’t, there’s a damn good chance we’re going to do it regardless of what we know…unless we can find another emotion or feeling to counter the “do it” one.

If you’re trying to force yourself to do something, take a step back and figure out what feeling you would need to want to do that thing, and then build that feeling through auto-suggestion, and visualizing the result in a way that makes you feel good about doing the work.

Quote and Analysis

“The explanation is, that the factor of personality known as “personal magnetism” is nothing more nor less than sex energy. Highly sexed people always have a plentiful supply of magnetism.”

Okay, so it’s not so much a desire for sex, as it is an energy that you exude.

Quote and Analysis

“People who lack sex energy will never become enthusiastic nor inspire others with enthusiasm, and enthusiasm is one of the most important requisites in salesmanship, no matter what one is selling.”

Okay, so it’s linked to enthusiasm. If you’re not enthusiastic, or excited, then you are missing that energy.

Also interesting that he talks about inspiring others with enthusiasm. Giving them the energy and drive to pursue your aims. So more is done toward your Definite Chief Aim than you would be able to alone.

Quote and Analysis

“Master salesmen attain the status of mastery in selling, because they, either consciously, or unconsciously, transmute the energy of sex into SALES ENTHUSIASM! In this statement may be found a very practical suggestion as to the actual meaning of sex transmutation.

The salesman who knows how to take his mind off the subject of sex, and direct it in sales effort with as much enthusiasm and determination as he would apply to its original purpose, has acquired the art of sex transmutation, whether he knows it or not.”

Okay, so, transmutation of sex energy is taking the same energy and enthusiasm that a guy would pursue sex with, and instead directing it at some other aim.

An example comes to mind. A startup CEO said that every time he was handling a customer service call, he would visualize the customer as a hot girl. Instantly his demeanor and willingness to help this person skyrocketed. And I imagine his energy and interest were elevated as well.

So given that, it would be like putting the object of your sex desire on the other side of the thing you want. So say you want to climb a mountain. Then you would imagine that getting to the top of that mountain would get you more sex.

So maybe the willpower comes in when you decide that you will deny yourself a faster route to sex and require of yourself that this aim and sex are inseparably linked.

Quote and Analysis

“It seemed quite significant to the author, when he made the discovery that practically every great leader, whom he had the privilege of analyzing, was a man whose achievements were largely inspired by a woman. In many instances, the “woman in the case” was a modest, self-denying wife, of whom the public had heard but little or nothing. In a few instances, the source of inspiration has been traced to the “other woman.” Perhaps such cases may not be entirely unknown to you.”

Why “modest, self-denying”? Is this code for “plain”? And so the man isn’t always thinking about sex with his wife?

But that doesn’t fit with the “other woman”.

Perhaps, as above, the man tells himself that he must achieve his goal for the sake of the wife or other woman?

Another possibility that occurred to me after reading further is that the “self-denying” wife is allowing her husband to take the spotlight. She’s allowing him to “feel like a man”. If the wife is instead one that hogs the spotlight and brings her husband down in order to elevate herself, then that would tend to detract from his drive to succeed.

Quote and Analysis

“Intemperance in sex habits is just as detrimental as intemperance in habits of drinking and eating. In this age in which we live, an age which began with the world war, intemperance in habits of sex is common. This orgy of indulgence may account for the shortage of great leaders. No man can avail himself of the forces of his creative imagination, while dissipating them. Man is the only creature on earth which violates Nature’s purpose in this connection. Every other animal indulges its sex nature in moderation, and with purpose which harmonizes with the laws of nature. Every other animal responds to the call of sex only in “season.” Man’s inclination is to declare “open season.””

It sounds like maybe this is a context for this chapter that I’m missing. Just like other chapters are written in the context of the stock market crash of the time, maybe this one is written with an eye towards gluttony and orgies of the time that I’m unaware of?

Quote and Analysis

“Between the ages of thirty and forty, man begins to learn (if he ever learns), the art of sex transmutation. This discovery is generally accidental, and more often than otherwise, the man who makes it is totally un-conscious of his discovery. He may observe that his powers of achievement have increased around the age of thirty-five to forty, but in most cases, he is not familiar with the cause of this change; that Nature begins to harmonize the emotions of love and sex in the individual, between the ages of thirty and forty, so that he may draw upon these great forces, and apply them jointly as stimuli to action.

Sex, alone, is a mighty urge to action, but its forces are like a cyclone-they are often uncontrollable. When the emotion of love begins to mix itself with the emotion of sex, the result is calmness of purpose, poise, accuracy of judgment, and balance. What person, who has attained to the age of forty, is so unfortunate as to be unable to analyze these statements, and to corroborate them by his own experience?

When driven by his desire to please a woman, based solely upon the emotion of sex, a man may be, and usually is, capable of great achievement, but his actions may be disorganized, distorted, and totally destructive. When driven by his desire to please a woman, based upon the motive of sex alone, a man may steal, cheat, and even commit murder. But when the emotion of LOVE is mixed with the emotion of sex, that same man will guide his actions with more sanity, balance, and reason.”

I think he is saying love tempers lust. A general desire to provide for and make the other person feel good that goes beyond just wanting to have sex with them.

Quote and Analysis

“Reformation comes, if at all, through the heart, or the emotional side of man, not through his head, or reasoning side.

Reformation means, “a change of heart.” It does not mean a “change of head.” A man may, because of reason, make certain changes in his personal conduct to avoid the consequences of undesirable effects, but GENUINE REFORMATION comes only through a change of heart -through a DESIRE to change. Love, Romance, and Sex are all emotions capable of driving men to heights of super achievement. Love is the emotion which serves as a safety valve, and insures balance, poise, and constructive effort. When combined, these three emotions may lift one to an altitude of a genius. There are genii, however, who know but little of the emotion of love. Most of them may be found engaged in some form of action which is destructive, or at least, not based upon justice and fairness toward others. If good taste would permit, a dozen genii could be named in the field of industry and finance, who ride ruthlessly over the rights of their fellow men. They seem totally lacking in conscience. The reader can easily supply his own list of such men.”

Again the presentation of the power of emotion versus logical reasoning in causing a change which will result in different actions.

And a reminder that the goal is not just love of your partner, but eventually love and justice and fairness toward all.

Quote and Analysis

“The emotions are states of mind. Nature has provided man with a “chemistry of the mind” which operates in a manner similar to the principles of chemistry of matter. It is a well known fact that, through the aid of chemistry of matter, a chemist may create a deadly poison by mixing certain elements, none of which are-in themselves-harmful in the right proportions. The emotions may, likewise, be combined so as to create a deadly poison. The emotions of sex and jealousy, when mixed, may turn a person into an insane beast.

The presence of any one or more of the destructive emotions in the human mind, through the chemistry of the mind, sets up a poison which may destroy one’s sense of justice and fairness. In extreme cases, the presence of any combination of these emotions in the mind may destroy one’s reason.

The road to genius consists of the development, control, and use of sex, love, and romance. Briefly, the process maybe stated as follows:

Encourage the presence of these emotions as the dominating thoughts in one’s mind, and discourage the presence of all the destructive emotions. The mind is a creature of habit. It thrives upon the dominating thoughts fed it. Through the faculty of will-power, one may discourage the presence of any emotion, and encourage the presence of any other. Control of the mind, through the power of will, is not difficult. Control comes from persistence, and habit. The secret of control lies in understanding the process of transmutation. When any negative emotion presents itself in one’s mind, it can be transmuted into a positive, or constructive emotion, by the simple procedure of changing one’s thoughts.”

Here’s the recipe. Train your mind to toss aside “destructive emotions” and search out “constructive emotions”. And you do this through practice.

You notice you don’t like something. Okay, fine. Now, what DO you like? What piece of this can be good. Or if nothing can be good about it, then be glad that you are alive, and have had better times in the past. Or that when it’s over, everything else is going to feel even better than it did before. Like getting that first drink of water after being thirsty for a long time.

Quote and Analysis

“Even the memories of love are sufficient to lift one to a higher plane of creative effort. The major force of love may spend itself and pass away, like a fire which has burned itself out, but it leaves behind indelible marks as evidence that it passed that way. Its departure often prepares the human heart for a still greater love. Go back into your yesterdays, at times, and bathe your mind in the beautiful memories of past love. It will soften the influence of the present worries and annoyances. It will give you a source of escape from the unpleasant realities of life, and maybe-who knows?-your mind will yield to you, during this temporary retreat into the world of fantasy, ideas, or plans which may change the entire financial or spiritual status of your life.”

There’s a specific example of how to cast aside a destructive emotion and go back into your past and find a constructive emotion to encourage.

Quote and Analysis

“Love is, without question, life’s greatest experience. It brings one into communion with Infinite Intelligence. When mixed with the emotions of romance and sex, it may lead one far up the ladder of creative effort. The emotions of love, sex, and romance, are sides of the eternal triangle of achievement-building genius. Nature creates genii through no other force.

Love is an emotion with many sides, shades, and colors. The love which one feels for parents, or children is quite different from that which one feels for one’s sweetheart. The one is mixed with the emotion of sex, while the other is not.

The love which one feels in true friendship is not the same as that felt for one’s sweetheart, parents, or children, but it, too, is a form of love.

Then, there is the emotion of love for things inanimate, such as the love of Nature’s handiwork. But the most intense and burning of all these various kinds of love, is that experienced in the blending of the emotions of love and sex. Marriages, not blessed with the eternal affinity of love, properly balanced and proportioned, with sex, cannot be happy ones-and seldom endure. Love, alone, will not bring happiness in marriage, nor will sex alone. When these two beautiful emotions are blended, marriage may bring about a state of mind, closest to the spiritual that one may ever know on this earthly plane.

When the emotion of romance is added to those of love and sex, the obstructions between the finite mind of man and Infinite Intelligence are removed.”

I think he’s saying that “love” is the key to “sex transmutation”. And that romance is needed even beyond love and sex to take advantage of the connection to Infinite Intelligence.

Quote and Analysis

“It is an interpretation which would, when properly understood, bring harmony out of the chaos which exists in too many marriages. The disharmonies often expressed in the form of nagging, may usually be traced to lack of knowledge on the subject of sex. Where love, romance and the proper understanding of the emotion and function of sex abide, there is no disharmony between married people.

Fortunate is the husband whose wife understands the true relationship between the emotions of love, sex, and romance. When motivated by this holy triumvirate, no form of labor is burdensome, because even the most lowly form of effort takes on the nature of a labor of love.”

Okay, so if the wife is understands (and presumably puts into action) the relationship between love, sex, and romance, then she can get her husband to happily do anything.

I’ve heard this called “chore-play”.

Quote and Analysis

“It is a very old saying that “a man’s wife may either make him or break him,” but the reason is not always understood. The “making” and “breaking” is the result of the wife’s understanding, or lack of understanding of the emotions of love, sex, and romance. Despite the fact that men are polygamous, by the very nature of their biological inheritance, it is true that no woman has as great an influence on a man as his wife, unless he is married to a woman totally unsuited to his nature. If a woman permits her husband to lose interest in her, and become more interested in other women, it is usually because of her ignorance, or indifference toward the subjects of sex, love, and romance. This statement presupposes, of course, that genuine love once existed between a man and his wife.

The facts are equally applicable to a man who permits his wife’s interest in him to die. Married people often bicker over a multitude of trivialities. If these are analyzed accurately, the real cause of the trouble will often be found to be indifference, or ignorance on these subjects. Man’s greatest motivating force is his desire to please woman! The hunter who excelled during prehistoric days, before the dawn of civilization, did so, because of his desire to appear great in the eyes of woman. Man’s nature has not changed in this respect. The “hunter” of today brings home no skins of wild animals, but he indicates his desire for her favor by supplying fine clothes, motor cars, and wealth. Man has the same desire to please woman that he had before the dawn of civilization. The only thing that has changed, is his method of pleasing. Men who accumulate large fortunes, and attain to great heights of power and fame, do so, mainly, to satisfy their desire to please women.

Take women out of their lives, and great wealth would be useless to most men. It is this inherent desire of man to please woman, which gives woman the power to make or break a man.

The woman who understands man’s nature and tactfully caters to it, need have no fear of competition from other women. Men may be “giants” with indomitable will-power when dealing with other men, but they are easily managed by the women of their choice.

Most men will not admit that they are easily influenced by the women they prefer, because it is in the nature of the male to want to be recognized as the stronger of the species. Moreover, the intelligent woman recognizes this “manly trait” and very wisely makes no issue of it. Some men know that they are being influenced by the women of their choice-their wives, sweethearts, mothers or sisters-but they tactfully refrain from rebelling against the influence because they are intelligent enough to know that NO MAN IS HAPPY OR COMPLETE WITHOUT THE MODIFYING INFLUENCE OF THE RIGHT WOMAN. The man who does not recognize this important truth deprives himself of the power which has done more to help men achieve success than all other forces combined.”

I quoted that in its entirety so I wouldn’t get in trouble trying to tease out specific pieces.

He points out that it’s both the man’s and the woman’s job to keep the love, sex, and romance in the marriage.

He also points out that women are the only reason men want money. As a friend of mine says “Men want sex, and women want money.” And “money” is just a way of getting security and comfort. That may not always be the case, but on average it has the ring of truth.

If you read this chapter carefully, what you find is that Hill is saying the woman really has all the power. She can make or break the man, but to use that power, she has to appear to give away the credit.

What I find interesting about that is that it is an excellent definition of the perfect leader. Someone who empowers their “followers” to do great things, and then gives the followers all the credit so they will go out and do even greater things.

And if you read that even more carefully, this chapter is really saying that men are just tools in the hands of women. That the only power men have is in choosing the right woman to wield.

That’s a pretty awesome specific example of the way to get yourself to do anything in life. You craft your environment, so that you make the things you logically want to have done the physically and emotionally easiest things to do.

You choose a wife who is going to support you in becoming wealthy.

You choose to only have healthy food in the house, so that when you are hungry and tired, you would have to get in your car and drive to get something unhealthy.

You remove TVs from your house, and avoid reading the news, to keep from accidentally absorbing someone else’s opinions.

You put your cash in investments so you can’t frivolously spend it.

You set an alarm to wake you up when you want to get up.

And so on.

Craft the environment now, so your future self can’t help but do the things you want it to do.

Think And Grow Rich – Chapter 10: Power of the Master Mind

Continuing my analysis of Think and Grow Rich.

This is for Chapter 10, Power of the Master Mind.

(Go here to start from the beginning.)

Quote and Analysis

“POWER IS REQUIRED FOR THE ACCUMULATION OF MONEY!

POWER IS NECESSARY FOR THE RETENTION OF MONEY AFTER IT HAS BEEN ACCUMULATED!”

This comes after the next quote, but I wanted to quote it first to establish why we would want “POWER”.

Also, note this says power is required, not just helpful, but required.

And further note that even after you get the money you want, you have to keep your Master Mind group to retain the money.

Quote and Analysis

“Power, as the term is here used, refers to ORGANIZED effort, sufficient to enable an individual to transmute DESIRE into its monetary equivalent. ORGANIZED effort is produced through the coordination of effort of two or more people, who work toward a DEFINITE end, in a spirit of harmony.”

Note the key terms here: organized, definite, and harmony. If you’re missing any of those, it’s not a Master Mind group, and you won’t get the Power.

Organized means you are coordinating your efforts and communicating with one or more other people.

Definite means you all know exactly what you’re aiming for. The details are clear to all.

Harmony means you appreciate, support, and generally feel positive and open toward the other people in your Master Mind group. Love and brotherhood would not be too much to say here.

Of all the terms here “Harmony” is no doubt the most difficult one to achieve and maintain. Ego tends to get in the way.

And note that according to the previous quote, if you lose any of these, “organize”, “definite”, or “HARMONY”, you will not be able to retain the money that you have accumulated up to that point.

So if what you have accumulated starts slipping away, do an inventory of these three terms, and see if you find yourself deficient in any of them.

Quote and Analysis

“Examination of the three major sources of knowledge will readily disclose the difficulty an individual would have, if he depended upon his efforts alone, in assembling knowledge and expressing it through definite plans in terms of ACTION.”

Here he’s noting a couple of practical reasons why we need the cooperation of others.

First it would be extremely difficult and time consuming to attain all of the knowledge we would need by ourselves.

And second it would be difficult to take all the action needed by one’s self.

Quote and Analysis

“If you carry out these instructions with PERSISTENCE and intelligence, and use discrimination in the selection of your “Master Mind” group, your objective will have been half-way reached, even before you begin to recognize it.”

This sentiment of the goal being half-way, or mostly reached, before you recognize it, comes up numerous times in the book. It’s the reason that Faith/Belief/Confidence is needed. So you persist in doing the things that are working, even if you can’t yet see they are working.

Quote and Analysis

“You may catch a significant suggestion from this statement: “No two minds ever come together without, thereby, creating a third, invisible, intangible force which may be likened to a third mind.””

In a previous quote I mentioned some “practical” benefits to a Master Mind. Here he’s talking about a benefit that is less obvious. He’s saying that cooperating with someone else gives you access to more than just that other person’s knowledge and ability. He’s saying it opens up a communication path to “Infinite Intelligence”. This is the source of “genius” and “inspired thoughts”. So cooperating with another person is actually worth more than just adding on that other person’s knowledge and abilities.

Quote and Analysis

“Mr. Carnegie’s Master Mind group consisted of a staff of approximately fifty men, with whom he surrounded himself, for the DEFINITE PURPOSE of manufacturing and marketing steel. He attributed his entire fortune to the POWER he accumulated through this “Master Mind.””

50 people. Just an example of the size of group we’re talking here. And these are all people who need to work in HARMONY. 50 people. In harmony. Elsewhere in the book Hill talks about how Carnegie wouldn’t keep a man on if he couldn’t get along with everyone, no matter how great that man’s skills were.

Quote and Analysis

“Men take on the nature and the habits and the POWER OF THOUGHT of those with whom they associate in a spirit of sympathy and harmony.”

And here’s another reason to craft your Master Mind group. The people around you are going to influence you. You can’t choose not to be influenced, but you can choose whom you are around and thus choose how you are influenced.

Look at how the people around you are, and you will see a reflection of how you are or will be. If you don’t like that picture, you can change it by changing the people you spend time with.

Quote and Analysis

“The other two major sources from which the knowledge, necessary for the accumulation of POWER, maybe obtained are no more reliable than the five senses of man. The senses are not always reliable. Infinite Intelligence DOES NOT ERR.”

You have access to the knowledge of man through libraries and the internet (which are the products of other people’s 5 senses), and you can see how the world works by using your 5 senses. The 5 senses can be tricked though. We see and hear things that aren’t there, for example. And so if we rely only on our 5 senses, then it is possible that we are working with false information.

But through cooperation in harmony with another person you gain access to this third source of knowledge, Infinite Intelligence. And this third source cannot be tricked. It is reliable. So if you want to make sure that you are working with accurate information, so that your plans are actually valid and match the reality of the situation, then you must form a Master Mind group with at least one other person to get access to this connection to Infinite Intelligence.

Quote and Analysis

“When money comes in quantities known as “the big money,” it flows to the one who accumulates it, as easily as water flows down hill.”

Just have to include this quote because of the term “the big money”. Notice the lack of effort implied here. It flows as easily as water down hill. It just happens. You create the hill. You stand at the bottom. And the money flows to you.

Quote and Analysis

“Every man who has accumulated a great fortune, has recognized the existence of this stream of life. It consists of one’s THINKING PROCESS. The positive emotions of thought form the side of the stream which carries one to fortune. The negative emotions form the side which carries one down to poverty. This carries a thought of stupendous importance to the person who is following this book with the object of accumulating a fortune.

If you are in the side of the stream of POWER which leads to poverty, this may serve as an oar, by which you may propel yourself over into the other side of the stream. It can serve you ONLY through application and use. Merely reading, and passing judgment on it, either one way or another, will in no way benefit you.”

Positive emotions (love, appreciation, faith/confidence/belief) bring fortune.

Negative emotions (hate, anger, envy, jealousy, doubt) bring poverty.

And he includes a warning. Even if you agree with this, it’s not enough. You have to actually put it into practice (“application and use”). You have to actively monitor your emotions. You have to actively counter the negative emotions when they come up. You have to practice seeing the “bright side” and feeling those good feelings.

Even when the circumstances of a situation would call for a normal person to be in a bad mood, you must maintain an exuberant mood. Remember, you have to be different than 98% of other people. You have to maintain your positive emotions even in the face of no evidence.

Quote and Analysis

“Poverty and riches often change places. The Crash taught the world this truth, although the world will not long remember the lesson. Poverty may, and generally does, voluntarily take the place of riches. When riches take the place of poverty, the change is usually brought about through well conceived and carefully executed PLANS. Poverty needs no plan. It needs no one to aid it, because it is bold and ruthless. Riches are shy and timid. They have to be “attracted.””

Here again is the concept of “poverty” or a negative mindset being the default. And only through an intentional effort can you turn your mind to the positive and start attracting the “riches” you want.