Archives of “humility” tag

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Floored

  
  Education
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You must see this movie.

People lament the decline of the print news media, the victim of computer culture. The trading floors of the exchanges have also had a sharp decline in the number of floor traders who populate the floor, as the trading business is being increasingly facilitated by computers. In 1992, there were 10,000 traders on the floors in Chicago, today there are only a few hundred and 95% of the volume is electronic. James Smith, the producer of “Floored,” the movie, examines the life of past and present traders both off and on the floor. He discusses the culture, environment, wins, losses, personalities and future of traders, past and present. He pays close attention to the struggles the ex floor guys are having without the edge that the pit gave. He examines the character of the players involved, and lets them reminisce about their floor days. He compares and contrasts the differences between local traders and computer traders. He interviews ex floor traders trying to make it on the screen. He pays particular attention to the off floor lives of traders and gives them a free reign in telling their stories. The stories are great as everyone that was successful in the pit has a great story, and ego to boost. The movie has many great shots of the action in the pits a few years ago and today. Many of the floor traders don’t realize that they’re subjects of the forces of natural selection, just like any other creature in nature. One of the interviewees said that a big difference between watching the pit and watching a screen would be equivalent to watching an entire football game on TV or just watching the scoreboard. This, and many other observations bring clarity, and numerous trading lessons that might be useful to anyone interested in trading. Also interesting to note is the obvious lesson in humility that is learned by ex-denizens of the trading pits. “Floored” is 87 minutes long, and can be found in its entirety in 8 segments, here.

(I highly recommend this movie to anyone interested in trading, futures, trading floors, etc. It’s a 150 year old way of life that’s sadly disappearing very quickly.)

Incidentally, for what it’s worth, there’s still some floor action in the cattle and hog markets, which have resisted the encroachment of electronic trading to some degree. Also, many options are still primarily traded by open outcry.

Marty Zweig, Ned Davis, and Humility

  
  Education
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MUST READIt is perhaps poignant that with many people looking for a market correction and much talk of elevated sentiment measures bringing back memories of 1987, that we learned today of the death of Marty Zweig, widely known not only for the put-call ratio, and ‘Don’t fight the Fed’, but also his prescient call in October 1987 just before the crash.

Marty Zweig calls the Crash of ’87 (The whole thing is worth watching but Marty comes in around the 6:40 mark)

Watching that piece of history again there’s much that modern business networks could learn from it. Notice the easy-going style of Louis Rukeyser, the complete lack of confrontation with his panelists, no raised voices, no sound effects, no gotchas. This is after one of the most wretched weeks in Wall St, (worse was to come obviously), but you would barely know it from the calm civility which permeates their discussion.

What I particularly like and admire however, is in making his observations Marty Zweig is almost apologetic about it. He fears we’re on the verge of something severe but rather than take the opportunity for grandstanding as many of today’s pundits would, he’s almost scared to tell everyone. He says: (more…)

Typical Traids of Top Traders

  
  Education
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First, let me say that I know of examples of successful trader’s that don’t have each of the characteristics that I would say the “typical” good trader shares. So there are exceptions to each of these. (more…)

Typical Traits Of Top Traders

  
  Education
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Temperament – In general, people with more analytical and even tempered personalities make better traders.

There is a counterbalancing trait which is the willingness to take risks. Some traders with volatile temperaments are successful because they can take risks easily and can keep trading after getting knocked down. They also tend to blow up more often.

Character – Humility is a very important ingredient in trading success. The truth does not care what you think of yourself. The markets don’t care what you want to believe reality is. Trader’s that are humble are better able to examine their methods and trading objectively and make changes where appropriate.

I’ve known a lot of successful traders that most people might consider arrogant but when it comes down to their own success and the reasons for that success they were able to see the faults in themselves and their trading. The trader’s that were out of touch with reality tended to blow up and have short-lived success.

Intelligence – General intelligence is correlated with success but not as highly as you might think. The ability to discern patterns and relationships with limited information is very useful.

I’d say that you need to be relatively smart to be successful but not extremely smart. Smart enough to understand the principles but beyond that it doesn’t necessarily help you. I’ve seen many very smart people tie themselves up in knots by second-guessing themselves.

Social Skills – Most of the really successful traders are not very socially skilled. Many tend to be reclusive and introverted. There are some exceptions. (more…)

11 Key Attributes Of Great Leaders

  
  Education
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  • 1. Honesty – Tell the truth; even if lying is easier – tell the truth. || “Honesty is the first chapter in the book of wisdom.” ~Thomas Jefferson
  • 2. Integrity – Do what’s right; even if nobody is watching – do what’s right. || “There are seven things that will destroy us: Wealth without work; Pleasure without conscience; Knowledge without character; Religion without sacrifice; Politics without principle; Science without humanity; Business without ethics.” ~Mahatma Gandhi and I will add an 8th “Leadership without integrity.”
  • 3. Visionary – Have some vision for where you’re going; empower your team to get you there and if you don’t do anything else – have some vision for where you are going. || “Honesty is the first chapter in the book of wisdom.” ~Thomas Jefferson
  • 4. Self Awareness – Know who you are; the good, the bad and the ugly, know who you are. ||  “He who knows others is wise. He who knows himself is enlightened.” ~Lao Tzu
  • 5. Risk Taker – Be willing to try new things, new strategies and embrace new ideas; even if the ideas aren’t yours – be willing to try new things, new strategies and embrace new ideas. || “Do not follow where the path may lead. Go instead where there is no path and leave a trail.” ~Harold R. McAlindon
  • 6. Caring – Truly care about those you lead; people can care less about how much you know until they know how much you care – truly care about those you lead. || Great leadership is always less about the “leader” and more about the “ship” ~Scott Williams

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