Being Passionate About Trading

Every Monday, Wednesday and Friday, about a dozen guys make their way to the Western YMCA in Newark, Delaware to play basketball.  The first game starts at 5:45—that’s a.m.

Why in the world would level-headed people forsake the comfort of their Tempur-pedic mattress and drive to the gym in 12°F (-11°C) weather to run up and down a court?  The answer is simple: an undeniable passion for the game of basketball.

There’s something almost therapeutic about playing basketball, especially pick-up games at the local gym or playground.  (A pick-up game has no formal teams or referees.  People just show-up, choose sides and play.)   The game offers camaraderie, competition, and a psychological release.  On top of all that, it’s great exercise, too. Finding a good bunch of guys for a regular game is tough, so when you find such a group, you stick with them.

This morning I was struck by the true passion these guys have.  Never are there any fights or long arguments; every shot is contested and every foul is called.  There are no easy baskets.  These people love to play; this shows not only in the high level of ball that we play, but more importantly, in their enjoyment of this early morning ritual.

I believe that it is much tougher to learn a complex skill, like basketball or trading if you don’t have passion for the sport—or the markets.  Competence makes no requirement for passion, although passion offers the shortest and most enjoyable path in the pursuit of excellence.

The Shortest Path to Success: Align With Your Passion

If you have a passion for something, spending the time required to master that subject will come more easily because it is so enjoyable.

Let me say a word about the concept of passion.  The type of passion I’m referring to is an enjoyment to the point of absorption.  I don’t believe that we are born with this type of passion.  I believe that it grows in us as we become involved in an area and start to receive enjoyment from the experience.  This type of passion shows up in all walks of life.  I know passionate cooks, guitar players, gardeners, engineers, doctors, programmers and performers. And I don’t believe that any of them were necessarily born with that passion.

I have met traders and investors who I wouldn’t consider passionate.  Some were proficient, others competent, and a few were even successful.  When they spoke about the markets or trading, however, they lacked any spark for the topic.  Most likely they will not reach the top tiers of their field.

I have also met passionate people who eat, breathe and live the markets.  Most of them do it with some balance in their lives, but they love the markets.  They love the research.  They love to talk about what they’re doing in their trading and investing.  Many of these folks are at the top or headed in that direction.

My best friend and trading and business partner will not go to bed without reading the Wall Street Journal.  He hasn’t missed a weekly Barron’s in 30 years.  He reads scores of market commentary emails every day.  He is a walking market encyclopedia.  When he talks about the markets, you can’t miss the gleam in his eye and the energy in his voice.  He has passion and is in the top tier of his field.

You don’t have to have a passion for the markets to enjoy trading and investing or even to get good at it.  But if you find a part of the market experience where you really enjoy your time there—where you get lost in the moment—pay attention to that feeling!  It might be researching individual companies, system building, fundamental analysis of commodities or technical analysis of charts.  Find what you like about this great game of trading and investing and follow that passion.  That’s the quickest way to get good at something.

And as an aside, if you haven’t tried exercising first thing in the morning, I highly recommend it for several reasons.  It’s a great way to get your day going!  If you are doing any mental activity (like trading or investing for example), the extra flow of blood to the brain through exercise has proven to raise performance in mental exercises.  And this doesn’t have to be a long run or playing full court basketball.  A good walk at a brisk pace will do the trick.  Get your blood moving and shift your mind to higher gear.

I’d love to hear your thoughts and feedback on this article or about trading and investing in general at drbarton “at” iitm.com.  Until next week…

Great Trading,
D. R.