I asked a twenty-something the other day something about plans for next week. He started to answer with a strained look on his face, his cellphone buzzed, and he said, “I gotta take this.” For a lot of people out there these days, their long-term planning comes down to making sure they have enough power for their cell phones.
When starting out in trading, I had to have a strategic plan to figure out a trading plan, automate it and execute it flawlessly. That took years and years of looking at charts, turning my logic into computer code, working on my confidence levels, dealing with life’s intrusions and never losing sight of where I was headed. Every day, every decision I made on my trading was geared towards that ultimate long-term goal of being a successful trader.
The tendency in today’s fast-paced, cell phone-driven world is to react, then react again and react one more time. Life’s twists and turns push many this way and that way. Many Brenda and I know have a hard time planning anything more than a week out, because they have no idea what they are doing next month. They have no long-term plan. They go through life reacting.
Try this simple thing. Think through your day first. Pick three major long-term oriented items that you can work on today. Plan on some time after you get these three things done to get back to text messages that have come in or social media posts you feel compelled to make or look at. You’ll find it will all get done and your mind will stay more focused and efficient in the process.
Plan your strategies for the long-term! Use tactics to get through the day! This allows you to know when you are doing things that help get you to your destination or are doing things that over the long-term are just distractions and really hurt your strategic progress.
Thanks for this piece Tom. At what point in your career did you decide that you wanted to manage money? Ie started as a independent trader, when did that outlook change?
I started trading at 22 in order to build net worth and have an emergency fund, since chemical engineering had been boom and bust in the 60’s. I started getting bored with my engineering job and working in a corporate environment about 4-5 years later and was essentially managing an investment club. That turned into a registered investment advisor and a few years later a Commodity Trading Advisor. With a nice portfolio behind me and some money already under management, I went full time at 30 years old and worked my butt off. At 50 years old, I realized that I wanted to be an independent trader again and closed Trendstat Capital in 2003. Now happily retired almost 19 years. The money management industry is a lot of responsibility and liability and I felt at that point, “what is the point?” Love independent trading, because you are not restricted as much when managing your own assets. Client expectations and government reg’s have made the money management industry a more difficult challenge than it needs to be. I am now really enjoying the ride!
Thanks for that Tom. Great insight, I am sort of at that Juncture at the moment. Weather to launch a Fund or something or continue working (as an engineer!)/Trading on the side. Thats great feedback appreciate your thoughts. Same here, enjoy the ride!
Sage advice
So true!
This is good advice!
Thanks for this piece Tom. At what point in your career did you decide that you wanted to manage money? Ie started as a independent trader, when did that outlook change?
I started trading at 22 in order to build net worth and have an emergency fund, since chemical engineering had been boom and bust in the 60’s. I started getting bored with my engineering job and working in a corporate environment about 4-5 years later and was essentially managing an investment club. That turned into a registered investment advisor and a few years later a Commodity Trading Advisor. With a nice portfolio behind me and some money already under management, I went full time at 30 years old and worked my butt off. At 50 years old, I realized that I wanted to be an independent trader again and closed Trendstat Capital in 2003. Now happily retired almost 19 years. The money management industry is a lot of responsibility and liability and I felt at that point, “what is the point?” Love independent trading, because you are not restricted as much when managing your own assets. Client expectations and government reg’s have made the money management industry a more difficult challenge than it needs to be. I am now really enjoying the ride!
Thanks for that Tom. Great insight, I am sort of at that Juncture at the moment. Weather to launch a Fund or something or continue working (as an engineer!)/Trading on the side. Thats great feedback appreciate your thoughts. Same here, enjoy the ride!