Wasting a Good Life Trading
Random thought for today (after a few geeky posts, I’m due an esoteric one)…
I was off the grid for a couple of months doing some non-geeky things. There was the new puppy (now a 6 month old trail-running beast), a jiujitsu tournament and a lot of MMA training (my other obsession in life and someday the topic of a blog post), a bit of travelling back to the US (to maintain my status as the world’s greatest uncle), and soon a Korea adventure with the Other for skiing and kimchi.
And despite all of that time spent away from the quotes and the research and the noise, my trading wasn’t impacted one tiny bit.
Readers know I’m an end-of-day mechanical swing trader. That means I only execute trades at the close. I don’t day trade, and barring financial Armageddon, I don’t monitor positions intraday. I don’t bother with market pundits or message boards, and I don’t agonize over what or when to trade. I follow a very concise mathematical formula, and besides being effective, I require only one thing from my trading: that it not impact my quality of life.
Contrast that with most traders I meet who are so personally involved in the day-to-day business of making a profit: eyes glued to a monitor watching squiggly lines or poring over financial statements or combing message boards. And the sad truth is that the vast, vast majority of them will fail to outperform even simple buy and hold, much less a successful fire-and-forget approach like Faber’s asset-class rotation model, or Luby’s stock of the week, or our own humble trading strategies.
If you are part of the mythical exception who produces supersized returns watching squiggly lines, then good on you – I wouldn’t do what you do, but I understand why you do what you do.
But if you’re not, the point of this random thought is to take the path of least resistance. It pains me to think that anyone misses out on time spent with their nephews or their Others or doing what they love, when there are simpler less intrusive ways to produce outsized returns and meet our financial goals.
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