In an attempt to actually back up my claims of longevity, I've added a photo to the header of this page. Though to be honest, I'm not sure if your belief in my story is actually something I desire.
The picture fits a few trading metaphors. Some are more popular than others and some are simply those of my colleagues on the trading desk. I want to explore a few of these and how they play into my psychology and temperament.
1. There is so much _____ (money, assets, wealth) on the side lines.
- Mr Practical Thinker, often mocks this theory. His logic is as follows: If you own stock A and sell it, what are you going to do with that money? Buy another stock (not on the sidelines), exchange it for another asset (buy a house or a boat...again, not on the sidelines), or throw it into the banking system where they get to use it (not on the sidelines). Unlike the little guy pictured here, he doubts that such a system really exists.
2. The grass is greener on the other side of the field.
- This is a truism on so many levels. Whether we're talking about markets, women, or opportunities, the best ones are always the ones we wish we were involved in. However, in a grander scheme, they're all just a football field. Some might have been maintained a bit better, watered more, perhaps even had some artificial upgrades, but when it comes to the game (in this specific illustration: trading) the field is just a field. We play our game and go home. Nothing more. There is may be a better field somewhere else, but the illusion has made many a trader leave the market they know and love to chase the ones that look greener...and then I came back poorer.
3. It's a marathon, not a sprint. Even this little guy (in the photo) will get across the field eventually.
- As in investing, that marathon approach has never really appealed to me (yes, I understand the compounding of returns, but still). As in trading, that is the phrase I use when I'm booking a lot of losers and instead of trading them, I have just simply stuck them in the position to deal with later.
4. Your progress should be as constant as the yard marks on a football field.
- This makes sense to me. If your results are consistent and easily tracked, you have a replicable system. If you're erratic and following your logic is about as clear as mud, you are just monkey throwing darts. My goal is to always have the process right and then rely on the counsel of the guys around me to trade it well. I want people to be able to look back and say they understood the trade and the reason I'm out of it.
5. Guarding the Left Hash.
- This has been my motto for some time now. As a scout team linebacker in college, I was an expendable body that could be put almost anywhere with very little recourse. During a frustrating mid-season practice the Offensive Coordinator finally snapped and sent the entire offense on a disciplinary lap (the was quite the painful experience for 300 lbs linemen). As they jogged, the scout defense was given new 'assignments'. Apparently, I wasn't a) very good b) very important c) not going to ever be able to give them a good 'look' d) painfully slow e) all these and more! My job, as it was described, was to just 'Guard the left hash'. Rather than take offense, I made it my job in life, to never be that disposable again. I fought to be irreplaceable and to always walk with my head up so that my crown didn't slip off my head. Some thought I was arrogant, but confidence looks very similar to those that have none. So for me, Guarding the Left Hash is the maturation of a scout-teamer into a trader and all the swagger that goes with it.
Finally, my market is saturated with powerful spreading algorithm traders. These boxes are lightning fast, accurate and self correcting. It is impossible to 'out-quick' them. But they have a serious flaw, they don't reason like we can. Granted, many of them actually "see" more of the market than we do, but they can't differentiate from the puke and the panic buyer. I think that there is only one real advantage we still have over the trading skills of a computer. That is our ability to know ourselves and to trade with a pure, unadulterated opinion of the environment surrounding us. An opinion formed on the back of a lot of hours, a multitude of paid 'dues', and the belief that we have matured and have no problem Guarding our Left Hash.
~LH
