Wednesday, April 3, 2013

Making friends in the industry

Going back the past few years where I had made the most development in professional trading, much of what I have gained, whether information or opportunities, resulted from practical, sometime harsh discussions with friends and associates in the field. Therefore it has become apparent that this business is still very much people dependent, not what I had imagined starting out, that I'd end up sitting alone in front of the computer in some dark room all the time.

Stress testing

Ray Dalio has mentioned his personal Principles to "beat the market", and this process requires additional minds for stress testing.


The pursuit of this goal (to beat the market) taught me:

1) It isn't easy for me to be confident that my opinions are right.
2) Bad opinions can be very costly.
3) The consensus is often wrong, so I have to be an independent thinker. 


1) I worked for what I wanted, not for what others wanted me to do. 
2) I came up with the best independent opinions I could muster to get what I wanted. 
3) I stress-tested my opinions by having the smartest people I could find challenge them so I could find out where I was wrong. 
4) I remained wary about being overconfident, and I figured out how to effectively deal with my not knowing.
5) I wrestled with my realities, reflected on the consequences of my decisions, and learned and improved from this process. 


Go out there and make friends, preferably with smarter people.

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