I just returned from a week in NY, where I spoke at the Executive Buy Side Summit at TradeTech NY...where the biggest players talk about how to find liquidity.
My presentation was the most unusual one by far, about the power of internal data and how it influences how we see the market and make trading decisions. Although I was invited to speak, I wasn’t sure how it would be received by this type of audience.
It turns out, executives from Goldman Sachs, and several multi-billion dollar hedge funds in the audience came up to me afterwords and encouraged me to write a book, going into more depth describing my unique approach to trading psychology and markets. Competitive market players will seek an edge wherever they can find it….including the mental edge.
Being told I need to write a book is nothing new for me, but what surprised me the most was the rather warm reception I received from many quants who were in the audience. A couple of them even took me out after to fill me up with drinks to see what they could get out of me…..and some very interesting conversation resulted. I have a new found respect for qaunts….some of them sense, and at least one I spoke to has a pretty good understanding of the human context behind the numbers. These are the guys writing ‘the algos’ that discretionary traders like to complain about.
Back to the writing on the wall…..Denise Shull, Ken Celiano and I just finished our co-authored chapter for an upcoming academic behavioral economics book – our chapter is on the human-social context that drives perception and judgement in traders. Besides blogging, that’s the most writing I’ve done for a while., but it felt right, like something I need to do more of.
Earlier in the week I met with my friend Brett Steenbarger at the multi-billion dollar hedge fund he works at, and he also encouraged me to write a book to expand on my approach to markets and psychology.
Also this week, I met with Ravee Mehta, who used to work for Soros and then Karch, and now he’s starting his own fund; Ravee wrote an excellent book that in many ways reflects my thinking and approach to markets. I highly recommend it. Ravee also encouraged me to write my own book.
Mike Bellafiore from SMB Capital, author of the book, One Good Trade has been telling me for a while now that I need to write a book, and over dinner with Mike this week, it finally clicked for me. Yes, Mike, I’m going for it.
What great news for the trading community! I will be the first one in line to purchase.
Thanks, Mike. As you know, both you and your book were an inspiration to me.
Thanks, Doc! Waiting for signal from Amazon to purchase it.
I’m discovering that a book takes longer than I thought, with some things beyond my control. The writing probably won’t be finished for another 6 months, and then it takes a few months for final editing and for the publisher to print and distribute it.
I am looking forward to your book with great anticipation. Your posts get right to the core of what for me is the challenge in trading. That is the ability to recognize when the emotional and inner thrusts are driving my trading rather than the rational thinking. I have read many books, including those of Steenbarger and Elder and done all the things they recommend but still I lose it and get way out of the zone. After eliminating all possible problems such as, tools, information, trading rooms etc. I was left with only one possible source of my trading problems. ME. When I started out I would say, trading is at least 50% psychology. Now I would say it is more like 99%. As I grow in knowing myself, my confidence to manage trades both favorable and less favorable grows.
Thanks for sharing your experience. It may or may not make you feel better about your situation, but at least you should know there are many, many traders who’ve had a similar experience as you describe.
Andrew