The Spock Within Each Trader
Leonard Nimoy died today. A son of poor orthodox Jews from Boston he managed against all odds to succeed in Hollywood and create one of the most iconic characters of the twentieth century. He also turned an obscure Jewish priestly gesture into the Vulcan salute, forever delighting those of us who have had to sit through the interminable theater of High Holiday services.
Spock personified the fundamental struggle between reason and passion, between logic and emotion and his conflict is very familiar to all of us who trade. How many of us preach the gospel of “discipline” only to fail over and over on one seemingly minor trade that turns into a massive disaster that nearly bankrupts our account?
In my day trading room we have a perfectly serviceable trading strategy that made money every single day last month. You’d think all of us would be ecstatic, just counting our “Benjamins” as take profits rolled in.
The strategy is slow. It trades only once or twice a day. It trades obscure crosses that don’t really move that much. In a word- its boring.
So we seek action elsewhere and trade the same strategy on the majors, often taking suicidal risks on highly volatile pairs like GBP/USD or USD/CAD. Because the strategy is very robust and because I try to be as careful as possible we’ve been able to escape most of the of the damage, but we have certainly taken on more heat than necessary.
Why do we do this? Because we want to trade. Of course we want to make money, but don’t ever fool yourself into thinking that making money is the number one priority of any trader. If it was we would all the have the cool dispassion of Spock and only trade that which produced the highest probability of profit.
But that’s ok. I think its much better and much more honest to admit to ourselves that trading lures us not just for the money but because we love the game and want to engage with the market every day. Forex trading is one the few pursuits in life where you can instantly match wits with the rest of the world and the act of a trade taking profit is as pleasant as the actual money it drops in your account.
Nimoy was great at making Spock a multi-dimensional character rather than just another robot and we should appreciate that just as Spock fought the battle between logic and feeling we do the same in the market every day. There is a Spock within each trader and we should recognize that fact.