Thursday Notes – A GREAT Interview
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Continuing yesterday’s theme of “Must-See TV”, here’s a link to THE BEST “trader” interview I’ve ever heard … in the context of a professional poker player interview with Annie Duke. Simply replace all of the “poker” terms with “trading” terms.
A heads up (pun intended) that Annie is pretty blunt with her words beginning around the nine minute mark, so please view at your own risk. I’m posting the link because the benefits of viewing this from a trader perspective clearly outweigh the “R” rating.
The first half is the most relevant part. Outstanding topics include:
- NOT focusing on the current hand or decision, but rather whether that decision will win over the majority of the … here comes that word again … time.
- Having the “heart” to not only understand the correct play, but to follow through and actually do it. This point is critically important from a trading perspective as you need to be doing the immediate opposite of those around you. You MUST be strong EXACTLY when it’s easiest to be afraid. It’s also PRECISELY why most trading “analysts” and ”auction callers” typically are poor traders.
- Acknowledging that you’ll NEVER master the game because it’s not mathematically solvable. One gets better, but never solves it.
- Acknowledging that there are many, many people much more “talented” in the industry than you. The difference is that they’re broke and you’re not.
- Accepting losses as part of the “variance” of the business.
- Not focusing on the bad “variance” out of your control. Focus on what you can control.
- Realizing it takes at least 4-5 years to really “get it”. And like any skill profession, I’ll add “several more years” if your goal is approaching your full potential or championship caliber trading.
- Being thankful for all those who are focused on criticizing you because it makes your job at the “table” all that much easier since they’re not focused on the important aspects and will thus trade emotionally, allowing you to be on the unemotional profitable side. As a public trader, I love this one because it’s sooooo true. As Annie says, “their behavior only makes it easier to take their money”.
- The complete lack of productivity from moaning.
- Not using trading to meet social goals. One of the downsides of group trading environments!
Annie would make an outstanding trader.
No doubt about it.
Thanks very much to onlooker Steve for passing this on.
Don,
When you say that the vast majority of money flows from the majority to the minority in this business, would it be accurate to say that 90% of that occurs because of emotions overpowering the 10% of technicals?
Who knows as there are so many reasons for business failure. Certainly add in the emotions of constantly dealing with financial capital in this industry and the odds simply increase for those who can’t keep perspective while the minority do … at least enough times to make the difference.
Yet since anyone on this planet can figure out patterns in a day or two, the fact that the majority fail certainly implies those factors are constantly in play.
ssshhhhhh (not so loud Don!) We do NOT want Annie Duke changing proffesions…LOL….I do not think you want to be on the other side of her trades…I know I don’t!… Nice Interview….wealth of info for sure!