The first lesson is that of professionalism. Once in a great while I've seen portfolio managers puff themselves up, point the finger at themselves, and make it clear to everyone that they're at the top of the world. I've never seen those managers last. Rather, the successful managers always feel as though they don't know enough. They scour for more news, they talk with more colleagues, they perform more analytical studies. If they feel confidence and conviction, they double down and look for what they might be missing before acting on how they feel. They invest in themselves, learning new skills, strategies, and markets, because they know that markets are ever-changing. I see it now in terms of the applications of AI to trading and in new forms of teamwork in trading. I see it in terms of new and different market research.
As I write this, the overall stock market is in a downturn and has failed to bounce from short-term oversold conditions. A few traders I've spoken with have been buying, convinced that this is a time to pick up bargains. Others, fearful of the situation in the Middle East and the debt overhanging the economy--as well as the deterioration of high-yield markets--have taken a very defensive posture. One successful manager I've spoken with has gathered decades of market data and investigated markets in history that have behaved similarly to the current one.
That manager is not bearish. That manager is not bullish. That manager is curious. Because he learns, he earns.
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