How to Live a Fulfilling Life as a Trader – Introduction
David Einhorn is one of the largest hedge fund managers in the world. He manages more than $10 billion for institutional investors. In his book, fooling some of the people all of the time, he said this, ‘to me, it isn’t even really work. Compared to hard work like manual labor, or dealing with a difficult boss, my work is fun’. To a large extent, this is what being a trader is. You will never deal with a difficult boss and weather will never be a hindrance to a successful life. In this article, I will highlight a few strategies to follow to live a fulfilling life as a trader.
- Have a working strategy
To be successful as a trader, you need to have a strategy that works. Without a strategy, you don’t have any chance of succeeding. The strategy is equivalent to the manual work that David was talking about. In this industry, the strategy is the most important thing. It involves knowing when to get in and when to get out. It also involves knowing the amount of money to risk for every trade. If you don’t have these strategies, chances are high that you will not be a successful trader.
- Learn to be satisfied
As a trader. You must learn to be satisfied. In this, you should understand that not all trades that you enter will be successful and not all the targets that you set will be achieved. You should therefore learn to be satisfied of the small profits that you make. You should also learn to be content when your trades fail to work out. If you are not content with the little profits that you make, chances are that you will not have a happy trading career. This might also lead to depression or even suicide.
- Learn to give back
I have spent time learning about successful hedge fund managers and discovered one interesting pattern. The best-performing hedge fund managers are also the biggest in philanthropy. Warren Buffet admits that he knows how to make money, and not how to give it away. To give away his money, he turned to his friend Bill Gates who gives it away. Bill Ackman has given hundreds of millions of dollars to charity. The same is true for other investors like Ken Griffin and Larry Robbins.
- Learn to live a humble life
If you succeed as a trader, chances are high that you will have a lot of money at your disposal. If you want to live a fulfilling life, you should live a simple and humble life. I have seen a few traders who want to drive the latest car in town. They want to have the biggest houses in their neighborhoods. They also want to have a bunch of body guards everywhere they go. The truth is that they are not who they want us to believe they are. They have a lot of insecurities too.
- Never forget where you came from
You should never forget where you come from no matter how successful you are. To paraphrase a common saying, when you are going up the ladder, you should not cut the steps that you used. You will need them when coming down. Remember that no matter how successful you are, chances of making mistakes are always there. Take the case of David Einhorn who once owned a company called Sunedison. It was one of the best performing solar companies in the United States. A few months after buying a stake, the company went bankrupt. The same is true with Bill Ackman who used to own a company called Valeant. It used to trade at more than $250 per share. Today, the company is trading at $10. This shows that we can all lose money. If such a thing happens, who will you turn to?