In Love With My Trade
By Gary B. Smith
Special to TheStreet.com
7/30/00 1:48 PM ET
Saturday, I offered 10 reasons why trading is so hard. So, if you haven't, read that column first. You should be fully aware of the downside before you give even the first thought to trading as a career, or even a hobby.
That said, why do I do it? What keeps me coming back, day in, day out? Here are 10 reasons why trading is pretty neat:
It's the ultimate chess game.
If you trade like I do, there are so many variables to master, you never get bored. Sure, at the beginning, it's all about entry. And then, it's all about entry and exit. But, after a while, you begin to appreciate the subtleties and twists that encompass really good trading. I've always said, if you liked solving simultaneous multiple equations in college, you should love trading.
I have one boss.
My biggest complaint when I worked in corporate America? Having to do the corporate kowtow. I hated it because I wanted to speak my mind but had to hold my tongue lest my career suffer.
But now, I have one boss: Mr. Market. Of course, he's a tough, demanding boss. But he's fair and doesn't want or need any BS. And that's how I like it.
You only have one enemy: yourself.
In corporate America, you have a lot of folks trying to knock you down, so they can rise. Call it the zero-sum game; call it corporate politics. Whatever, it gets tiring after 16 years.
But, in trading, the market isn't your enemy. No, the only enemy you fight every day is yourself. Master him, and you can be a great trader.
When you're hot, you're hot.
There's nothing that gives me a greater thrill than for my kids to do well in something. Whether it's all A's on the report card, or a 39-flat in the 50 breaststroke, this guy is beaming. Ditto with my wife: No one is more proud when she receives recognition than this guy.
But I'll tell you, having a great day or days in trading isn't far down the list. For a brief moment, you really feel like you have a handle on something. You feel like you've mastered a tricky craft. And best of all, you don't need anyone else to tell you well done. No, it's all there in black and white.
There's always something new to master.
This goes hand-in-hand with No. 1. Trading is so complex and ever-changing that you never really have it figured out. (When you are sure you do, you can also be sure you're about to take a big hit.) But that's fine, because the great enjoyment in trading is not only the accomplishment, but the learning along the way. I am frightened how little I knew even three years ago. But I am heartened that I keep getting a bit better every day.
I am completely mobile.
When I saw my wife was going to be a force in the corporate world, and we'd be moving around the country, I knew I had to do something completely mobile.
And let's face it, there's nothing more mobile than trading and writing. I've done both from hotel rooms, airports, swimming decks and the beach. (No, not from the golf course ... yet!)
I truly can't imagine the kind of money someone would need to offer me to jump back into a different kind of job. In fact, maybe no amount would do at this point.
You can be as successful as you want.
I could never have been a top pro golfer. OK, maybe a tour rabbit, as they used to be called. But able to play at the level of David Duval, Phil Mickelson or Davis Love III ? Forget it. I just don't have what they have, whether it is athleticism, drive or opportunity. (I'm not even looking at Tiger Woods. I'm not even sure Duval can be Tiger Woods!)
I could never have been a top surgeon, either. Too dumb to get into medical school, and I can barely tie my own shoes, let alone patch someone's heart!
But, trading, yeah, I can be better than George Soros. Better than Paul Tudor Jones. Better than Julian Robertson. I'm not saying I will, of course, by any stretch of the imagination. But there's certainly nothing standing in my way.
I really believe all it takes is having a sound methodology, an unbelievable work ethic and the ability to master your own emotions. That's easy to say, very hard to pull off. But it's doable. And, if you succeed, you can be as good and as rich as anyone. Yes, even as rich as Tiger.
The hours are pretty neat.
I have never missed a swim meet, and have barely missed any practices. I have taken my kids to every dentist, orthodontist and pediatrician appointment for the past five years.
'Nuf said.
Every day is a fresh start.
If I control my emotions, I never have any baggage hanging over me. I'm never 12 strokes off the lead with three holes to play. I'm never the guy who said OS/2 would trump Windows, thereby branding me with the Scarlet Letter. I'm never the guy who is just a bit too small and a bit too slow to win the heavyweight championship. No, I'm the guy with a clean slate each and every day, and, if I stick to my plan, every day in the past is meaningless.
You can make a lot of money.
If you want to be a great trader, you'd better love to make money. Hey, no bones about it, I sure do. And I've been fortunate some days and weeks to make more money than I ever thought I'd make in an entire year. Sure, you have to work at it. And if you think it's easy, ask all the "pros" who made a ton in January and February, and who are now down for the year.
But you can make a lot of money, in a lot of different market conditions. Is it greed? Damn right. And you'd better have a healthy dose of it if you want to succeed.
So, I leave you with this. The pros look so appealing that it's easy to overlook the cons. But, the fact is, the vast majority of those trading or thinking of trading end up washing out.
Just something to think about. |
