Thoughts on Giving Thanks: A Trader's Perspective

Researchers have identified several components to psychological well-being, including our overall happiness, our energy level, and closeness in social relationships. Another important component to well-being is contentment: one's satisfaction with life. The literature finds that contentment is different from happiness. The former reflects a global appraisal of one's life situation; the former is an emotional experience. We can do many things that make us happy and yet not achieve overall life satisfaction and fulfillment.

Too many traders equate contentment with complacency. They are afraid of being satisfied, because they assume that this will reduce their motivation to move ahead. As a result, they never find contentment; they are never satisfied.

In my own experience, I trade best when I have reached a particular point of peace within myself. If I miss a move or exit a trade too soon, it's no more that a temporary frustration. There will always be other opportunities. I don't need to catch each move in its entirety to be OK with where I'm at in my trading and in my life.

When I fail to find that internal peace, wanting to succeed becomes need to succeed. I find myself trading out of that need, chasing moves and overtrading. I'm not trading from a position of emotional well-being; I'm trading to try, vainly, to find well-being. But no happiness from winning trades can sum up to life satisfaction.

The content trader operates in a universe of plenty. The trader lacking satisfaction operates in a universe of scarcity.

Thanksgiving is more than a day in the year; it's a state of mind. And I suspect it's a state that has much to do with long-term success. The contentment of giving thanks is not laziness or complacency; it's the state that clears our minds for creative insights and the perception of opportunity.

Comments

[bs_clobberer:]

it's sad to see people who take trading too seriously; trading is by definition a pointless money-oriented chasing of wealth, adding nothing to society other than strengthening the efficient market theory; this article to me shows a frustrated literary intellect stuck in an unproductive materialistic activity

2008 Nov 28 06:17 PM

[investor88:]

Trade with a content mind not one lacking satisfaction of wealth and achievement. Agree this is one of the keys to long success in trading. So it alright to miss this rally or short that decline, there will always be opportunities so as the mind is content and alert.

2008 Nov 29 12:29 AM

[axelrod608:]

In the early 1990's I was one banana peel away from homeless. I am deeply thankful every day to have more to trade than my sweat for a meal. This country has a greater level of opportunity for the quick and bright than any other, yet we are measured by how we treat those who who lack the quick and the bright and who are in need. In that subject we are getting a failing grade.

Our national welfare program is rewarding the already rich, the already powerful, the already influential. We would be wise to refocus that aid.

For me, every day is now Thanksgiving. But I'd be much more thankful if Paulson, Bernanke, the minions of George II and the "fools on the hill" would get out of the way and let the market do what the market does best. All the government stimuli have turned the markets into a multitrillion dollar game of pin the tail on the donkey.

Life is good. It could be better. I am blessed.

2008 Nov 29 09:41 AM

[maelstrom:]

Brett you are 100% correct. It took me years to realize I was never going to be the smartest guy in the room on stock trades, I very very seldom buy at the bottom and never get the last penny of profit.After the realization that as a small trader, I was just tagging along with the big guys, I started trading much better. And became much more content. Thanks for a thoughtful article

2008 Nov 29 11:05 AM

[Yossel:]

For Axelrod608: Me, too! Many thanks for reminding me. Yossel

2008 Nov 29 11:16 AM

[ASav:]

Great insights Brett. Thanks.

2008 Nov 29 11:16 AM

[B. Ray:]

Hi Brett,

I like this article. An article with calmness and with wisdom.

2008 Nov 29 11:28 AM

[carey_jim:]

Most people don't seek happiness, they seek some form of power whether it is in the form of great wealth or great achievement.

Contrast Scroodge McDuck with his poor nephew, Donald Duck.

Donald, who was born on Friday 13, is often in hot water, if you'll pardon the Thanksgiving metaphor but the adventures surrounding getting out of hot water seem to bring him happiness:

Narrator: The worst was yet to come. Friendless, jobless and foodless, Donald was down and out. He'd lost his fine feathered nest and was forced to move into a cheap rental. Now the superstar would have to get a real job like the rest of us.
[Donald, thanks to his temper, just can't hold a job]
Donald Duck: What am I gonna do?
Narrator: That's the question everyone's been asking since this special began. As long as Donald's temper was out of control, he would pay the price. Now the only job he would be eligible for would be as a hunting decoy. And even Donald is not that stupid.


Scrooge McDuck: Since I'm the richest duck in the world, I am going to celebrate by taking everyone out the world's biggest hamburger stand!
Webby: Can we order fries?
Scrooge McDuck: You can even order hamburgers!

Happy Thanksgiving!

2008 Nov 29 12:22 PM

[GatorTrader:]

Thank you for sharing your perspective Brett.

What's truly "worthless" are the comments by Stox2buy and the aptly named "BS...." So much hate and judgment of their fellow man, I don't know how they can be "thankful" for anything.....

2008 Nov 29 01:59 PM

[slipper:]

Coming out of college, i wanted to "make stuff", like products. Coming out of Biz School, i wanted to work in "operations". Then spent time building an insurance company, doing consulting for large businesses, and running my own dot com; all lots of fun; but being a trader, definitely the best, most interesting type of life. Great article, thanks

2008 Nov 29 01:59 PM

[granger:]

Thank you, good stuff as always.

2008 Nov 30 07:09 AM

[leh:]

Yes, good piece on what the Buddhists call Right Mind or Big Mind, i.e. putting your own neurosis and smallmindedness aside in an attempt to tap into the collective flow that is the market. Thanks for posting.

2008 Nov 30 01:13 PM