As I said before … I’m a market geek.
Now … we all remember the famous William Shatner, Saturday Night Live “Get a Life” skit. The whole world (myself included) finally had it’s very public opportunity to laugh at Star Trek ‘geeks’. The entirety of the reason it was funny however … is that we understand that Star Trek ‘geeks’ actually do care.
And it is amazing to the rest of us, that they truly care whether or not Captain Kirk was holding the phaser in his left hand or his right hand. But to a Star Trek geek? That’s important business. They do care. They find it incomprehensible that the rest of the world does not see the deeper meaning and impact on humanity. The sad result however, is that their skewed sense of priorities causes the rest of us to laugh, even years later when we think of that classic skit.
It’s a trait common to all geeks. Caring deeply and passionately about their beloved subject. And yes, that includes market geeks. Face it. We care about things that other people generally could care less about, or find only mildly interesting. In fact, we care a little too much.
In over 19 years of trading, I have never seen the arguments over market prices, influences and theory as I have over the last 8 years. Hyper-inflationists fighting hyper-deflationists. Peter Schiff was right, or Peter Schiff was wrong. Gold is going to $2,000 an ounce, or Gold is going to $650 an ounce. Fiat currency is the devil. Fiat currency is misunderstood. The DOW is going to 30,000. The DOW is going to 2,000. Ben Bernake is doing a wonderful job. Ben Bernake is going to plant chips in our heads and enslave us all. HFT arguments galore. Greek elections. Fiscal cliffs.
But in all that time, what has really, truly changed?
Nothing much. Markets trend. They stop. They backfill. They resume trend.
I’ve watched names hurled on both sides. I’ve watched both sides laugh at each other on mainstream television, and play the “Oh, you’ll see” game. Even otherwise very intelligent people get drawn into a shouting match, over the “proper” price of a particular equity. Especially interesting when the market is doing that very job while they argue.
Go down your street, and perform your own “Jay Walking” experiment.
Seriously. Do you truly think the average personal truly cares about the price of Gold? Do they know what a derivative is? Do you think they know the difference between an exchange and an exchange traded fund?
As market geeks, we can become overly emotional about market topics. For ‘new’ market geeks, there is a tendency towards an adamant beliefs about the market direction, and in the bias. Therein lay the problem. Emotional bias leads to a certain belief in a single trade. A trader then holds onto a single trade, because this single trade is going to prove the trader right, and others wrong. They quickly forget that it’s not about the one trade, it’s about the many trades. Risk management and drawdown principles are thrown right out the door and before you know it, the trader is praying to the God of margin calls and forced liquidations.
When it comes to my trading endevours, I’m asked all the time where the market is going.
Quite frankly? I don’t know, and I don’t care.
That is not my particular ‘brand’ of geekdom.
I’m more passionate that people not spread misinformation about the markets. I become passionate when know nothings demonize “algorithms”, or “market making HFT’s”. Then my brand of ‘market geek’ emerges.
Because I am a market geek, who does care …