10 Surefire Ways to Achieve Unhappiness The Battle is With Yourself

10 Surefire Ways to Achieve Unhappiness

The Battle is With Yourself

Years of experience eventually teach you that your main battle, always, is with yourself — your propensity for errors, for rationalizing marginal hands into good hands, lack of concentration, misreading other players, emotional eruptions, impatience, and so on. Your opponents are merely dim outlines that come and go. Few of them ever reach the exalted heights of damage that you can inflict on yourself.”

- Larry Phillips, Zen and the Art of Poker

Many great traders have expressed some version of the opinion, “Your greatest opponent is yourself.” Do you agree?

If so, what are the implications?

On the positive side, if “we have met the enemy and he is us,” as Pogo once said, what does that say about growth opportunity?

If you had perfect discipline, perfect motivation, and perfect emotional control, how good (or great) a trader could you be? 

Don’t be a hero. Don’t have an ego

What does it mean to be a hero in trading?

In poker, a “hero call” is sometimes appropriate. It refers to the call of a very large river bet with medium strength — or even Ace-high — based on a strong read that your opponent whiffed on a draw and is representing a huge hand to steal the pot.

In markets and trading, there is no official definition, but we can more or less surmise being a “hero” looks like the following:

Putting your foot down and saying “markets will do X, I’m sure of it!”

Pointing to the sky like Babe Ruth — “this is where my profits on this trade are going to go!”

Making large bets (relative to your capital base) with a do-or-die mentality. “Dammit I am right!!!”

Declaring with godlike authority how certain macro events will play out. “The treasury bond market WILL collapse!!!”

And so on…

Off the top of my head I can think of three ‘hurting heroes’ right now: John Paulson (gold and gold stocks), Kyle Bass (Japan) and Bill Ackman (Herbalife, JC Penney). There are probably many more…

There are also many semi-heroes among the journalists and chattering classes, though these guys don’t really count. If the pundits make a huge prediction and it comes true, they get lots of publicity. If it doesn’t come true, no skin in the game so who cares… they just wait a while and make another big prediction. Wash, rinse, repeat.

What does NOT being a hero look like in trading? Some possibilities:
Not trying to catch the absolute top or bottom
Not “fighting the tide” because you are “right”
Being agnostic and opportunistic deep in your bones
Changing your stance immediately if price action fails to confirm
Never entering without price confirmation in the first place
Looking for max risk-adjusted odds of profit, not max glory

Not being a hero means less glory, but ultimate far more profit, because if you have the patience to wait for the (non-heroic) optimal moment — which is almost never the initial turning point, which heroes love to call out — you can more effectively scale up and put leverage to work in your favor.

Not being a hero in respect to adverse price action — dumping positions quickly that aren’t working out as planned — also lets you safely deploy more size in general, which in turn allows for more effective pyramiding and greater profits from the very same move the hero took with less size (because he got chewed up so many times trying to catch the damn turn).

And of course, there are the invaluable merits of pure survival and never going down with the ship (as heroes all too often do)…

8 Things Really Successful People Do

1. Make Materialism Irrelevant

Fancy cars and houses are all well and good, but many foolishly focus on the byproducts of success, rather than concentrating on building sustainable success in the first place. Establish a bare minimum for your material needs, and then you can enjoy the benefits of success, debt- and stress-free.

2. Enhance Knowledge

Success comes faster to those who are open, active learners. The higher up the success ladder you climb, the more complex the systems and opportunities that are presented to you. Absorb all the information you can and if you sense a gap you can’t fill, connect with people who have the knowledge you need.

3. Manage Relationship Expectations

People in your life require time. Successful individuals attract folks, and so they have to carefully regulate the time they can spend with others. It’s hard to limit the time you share and still make people feel important. Make choices about the people who matter to you and determine how you each can get value from your interactions. Then make sure they understand your limitations so they don’t take it personally when you can’t be present.

4. Practice Emotional Self-Awareness

Not all successful people are calm and nice. In fact, many can be volatile. But most are very aware of their tempers and idiosyncrasies. They know how to use their emotions to get what they want from life and work hard to make sure feelings don’t become a detriment. Know yourself and learn how to let your emotions work for you in positive ways.

5. Commit to a Physical Ideal 

Everyone has a vision of their own perfect body. They don’t have to be fashion models or athletes to be happy. But physical health is a consideration in their life and it’s a big distraction when it gets out of whack. Determine the body you believe is worth working for and set a game plan to achieve and maintain it.

6. Gain Clarity About Spirituality

There are many highly successful people like Richard Branson and Warren Buffett who don’t consider religion to be important or relevant. But they have a clear point of view as to the role spirituality plays in their life. Find your own way to be at one with the universe and be clear and deliberate in how you practice.

7. Adhere to a Code of Ethics  

Really successful people live by rules. Those may not be the rules of others, but consistency is important for them to maintain power and stability. Their individual view of how the world works is the basis for how they believe people should be treated and they will defend it until their dying day. Determine your ethical lines and broadcast them loud and clear so people around you know where you stand.

8. Focus on Time Efficiency

Prioritization is a key component of success. You can’t reach your pinnacle if you are wasting time on distractions. Integration of activities frees up time for greater achievement. Spend your time on activities that are fun, enlightening and productive and soon you’ll have gained hours to reap the benefits of success.

Ultimately, really successful people live their lives by design instead of default, so if you want to be one of them, dedicate time and effort to determining the plan for your preferred future and execute that plan in a focused and consistent manner.