Comments on Ego 12-29-08

 

12:27 TOC: Had conversations over the holidays with two friends of family that have started trading over the last year....after 30 minutes, I just shut up and pondered for the rest of the day "Was my ego THAT out of control when I first started trading?"....i didn't like the answer

12:28 Kongfuzi: don't you think it takes some ego to be willing to risk capital?

12:28 Huddy: ego's and trading find a way of reducing the owner of the ego to a puddle of ruined dreams

12:29 Newshues: I think you're confusing ego with something else KF

12:29 Kongfuzi: not that letting the ego decide on entries and exits is necessarlily a great strategy

12:29 TOC: KF....tricky question, but I would have to say now, size of ego is inversely proportional to success

12:29 Huddy: ditto

12:30 Kongfuzi: I just mean you have to have some "idea" that you are "smart enough" to figure this out to even start trying

12:30 Huddy: I find that when I am not a little scared when I hit the button that I am getting too cocky

12:30 scylnx2: "Egoless people have nothing to protect. They just do whatever the market tells them to do. They don't tell the market what to do ro what it is going to do" Zen in the Markets-Edward Toppel

12:30 proplay: I think there are some big-time succesful traders w/ big egos

12:30 Kongfuzi: right i'm not confusing ego with ability

12:31 Huddy: agree pro....just not a ton of them

12:31 Newshues: I surprise myself everytime I hit a target within 2 pips. I don't want that to ever go away.

12:31 TOC: sorry....didn't mean to drag room away from market....was just amazed at the conversations

12:31 proplay: ego with ignorance is one thing, ego with knowledge I think happens from time to time on wall street... but overall I agree w/ huddy

12:32 TOC: apparently I don't get out much anymore....lol

12:32 Huddy: everyone thinks they can do this

12:33 Newshues: problem is everyone can do this. at least in the mechanical sense.

12:33 scylnx2: ...because its conceptually so simple .... buy low sell high .... lol

12:33 Kongfuzi: well, maybe what I'm trying to say is one has to be willing to take risk, and initially, some amount of ego may be necessary for one to take that risk.

12:33 Huddy: and the sad part is when they hit a good one first time..... by accident

12:34 Newshues: even when I have a great day simming I still know that it won't go so smooth live.

12:34 Kongfuzi: to me what is more interesting, is that the "perception" of what trading is, generally is way off the mark of what it really is.

12:35 Newshues: I get up and walk away after a good trade. keeps me honest.

12:35 scylnx2: re: Huddy's last remark, see "Fooled by Randomness" by Taleb

12:35 Huddy: right scylnx.   I did that...first trade...a freaking hero...gave it all back the next hour

12:37 TOC: when I told these folks that my average trade is several minutes to several hours, and rarely hold overnight, they said....'oh, daytrading?'....i may as well have had the mark of the beast on my forehead

12:37 Kongfuzi: hehe - : maybe we all need a common tatoo

12:38 scylnx2: I prefer to go incognito

12:38 TOC: scylnx....ya, lesson learned here.   I like your cover....computer guy

12:40 scylnx2: ...and man behind the curtain

12:41 TOC: you can be the man....i have been reduced to a puddle of boy scy