1/14/2026 - One consistent piece of advice I've given traders is to always, always, always have something more important in your life than trading and P/L. That might be a very special relationship with a spouse or family; it might be your faith and religion; it might be a career pursuit outside of markets or a life activity you're passionate about. But trading must fit into your life. It cannot run your life, and it cannot substitute for the joys that come from our physical, relationship, and spiritual well-being.
When trading becomes all-important, we find our moods and outlook dominated by P/L. Our self-esteem becomes conditional: we feel only as good as our performance. The ups and downs of P/L become ups and downs of our energy level and that stress takes a toll on everything else we do. One consistent finding from my research on successful traders is that they lead very full lives. They have lots of sources of joy and energy that sustain them through difficult trading periods. In broadening our lives, we can cope with any life setback and we maximize overall positive psychology.
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1/13/2026 - The best way to deal with stress is to make sure it doesn't become distress. All of us feel overloaded and stressed at times with life's challenges and the ups and downs of markets. The problem is not the stress--that is inevitable--but our letting it accumulate to the point where it turns into anxiety, self-doubt, and a loss of energy.
Research in positive psychology is clear: when we balance our sources of stress with activities that bring well-being, we do not experience distress. This is why it's so important that there be elements in your trading processes that are rewarding and fulfilling to you whether or not you're enjoying solid P/L. Perhaps what brings you happiness and fulfillment is working closely with other traders and participating in their growth. Perhaps your well-being comes from learning and the stimulation of finding new ideas and opportunities. Perhaps your balance comes from life activities outside of trading that are rewarding when markets are not.
The best way to deal with stress is enjoy a broad portfolio of activities that will always pay off in some fashion. Happy and fulfilled people do get stressed--life would be boring otherwise!--but they don't fall into the trap of distress.
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1/12/2026 - Our life's tank can be empty, not because we've been working so long and hard, but because the work we're doing does not truly inspire and challenge us. Similarly, the tank of our romantic and family lives can be empty because we fail to engage in the kind of new, stimulating activities that keep relationships fresh. When Margie and I felt overloaded with our responsibilities, we didn't automatically assume that we needed rest. In fact, many times those occasions led us to travel to interesting locations, whether it be a tour of Iceland, a small boat trip to the glaciers surrounding Alaska, or a drive down Italy's Amalfi coast. Recharging meant making new and different efforts and sharing fresh activities--even if it was just going to a new creperie or looking for cats to rescue.
The answer to burnout is often not to do less, but to do different. At some point, routine becomes deadening. Our challenge amidst life's routines is to always pursue activities that energize us, challenge us, and stimulate us. Work-life balance is great, but what is most important is ensuring that the "life" part of that equation truly gives us life. Burnout does not come from too much work, but too little rejuvenation.
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1/11/2026 - A great life is the culmination of individual days, weeks, months, and years lived greatly. Can we lead a meaningful life if we aren't doing things meaningfully on a regular basis? Can we lead a productive life if productivity isn't our norm? Such an important question is: What can I do today that will move me forward toward my goals for the new year and for my life?
I recently tried on a sport coat that I had not worn in quite a while. In the jacket pocket, I found notes in a diary that I wrote in preparation for a talk to a hedge fund in NYC. The notes were headed "Questions to Consider" and the first item was as follows:
If every day was like this day:
a) How would that impact my physical health/wellbeing?
b) How would that impact my emotional wellness?
c) How would that impact my significant relationships?
Today is not a toss away trade. Today is an investment in the future. What are you doing today that will pay off manyfold in the days to come?
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Great questions for self-assessment are: During this past week, how often did I connect meaningfully with people I care about? How often did I engage in activities that are fun and enjoyable? That are fresh and stimulating? Essential to an energized mind state is variety. That includes activities that work us out physically, that grow us intellectually, that inspire us spiritually, and connect us socially. When we care for ourselves, we keep ourselves in peak creative condition and peak focus.
If athletes spent all their time working out and playing competitively, their bodies would break down and their performance would suffer. Perfect performance never comes from perfectionism.
How we spend our time shapes the value of our life's efforts. Drive hard and refuel often.
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