“You” Suck !!

Posted on Jan 7 2015 - 11:30am by Sharpe Trade

No, not you.

You might actually be one of the best traders out there.

I’m talking about some professional money managers that I’ve seen in my time.

Usually at the end of each year, professional’s will report the numbers of how they did for the year.   Because in this business, nothing matters, as does your performance. Newcomers may think there is a bit of bravado in this, but there really is not. In this business, your performance is ‘who you are’, in a way.  Performance, really … is everything.  You can be the nicest guy or gal in the world.  But if your performance is lack-luster?  Well, let’s just say that it is sort of like baseball.  You can give the best interviews in the world, but if you are batting .218 for the year ….

Well …

So as many of us have run public portfolios, and we report our numbers.

For example, myself?  My valuation account did 9.77% in 2014, with only -2.425% drawdown.  My short-term trading book that consists of stocks, futures and options did 16.2% in 2014 with 1.28% drawdown.  My Forex trading account, which is sort of a new venture for me, did 1.338% for the year.  Which means that if you combine the Stock, the Futures and Options together with Forex, I traded in total of 8.941% in 2014 with only 0.73% drawdown.  My Sharpe Ratio for the last three years is 1.54 (I got hit in 2014 last year on my Sharpe Ratio with a bit of upwards volatility from previous years)  So again, no, that’s no bragging.  I don’t see it at bragging at all, since it was not a particularly ‘stellar’ year for me.  And there are people out there that did much, much better that I.  Others not so much.  It’s all only a year.  I never look down at someone who only did 3%, because next year, that might be me, and they might be cranking it out at 29% or higher.

So why am I flabbergasted?  Who is it that I think ‘sucks’?  

People that are banded about, get all of this air time … are asked of their views on every financial show from here to Nepal, are sought after for their insights into the market, and they just absolutely … flat out …

SUCK

It never ceases to amaze me. Again, I’m not talking about a bad year.  2014 was mediocre for me.  I’ve had bad years where my whole portfolio only returned 4%.  Thankfully, that happened inside of a ZIRP environment, so I still beat the risk free rate.  But I viewed 4% for the entire year as a complete disaster.  And again, I do not look down on anyone who returns a single digit number, or low single digit.  It happens.

So why am I flabbergasted?  Who is it that I think ‘sucks’?

People that are banded about, get all of this air time … are asked of their views on every financial show from here to Nepal, are sought after for their insights into the market, and they just absolutely … have public returns of

-25%

or

-15%

or

-28%

That my friends, is simply not acceptable.

Period.

I can even understand a small negative number.

But -15%?

Are you kidding?

In all seriousness, is that a joke? 

What’s better yet, is when we watch someone with a -28% return, act in a superior manner as if they are the ‘cat’s meow’ and the rest of us are a pack of idiots!  Really?  Did I cross into some sort of ‘bizarro universe’ or something, and just not realize it?

Have they ever heard of a “kill it” switch?  The first rule which is don’t lose money!??  I mean … -28% is actually acceptable as a loss?  I’d be in the restroom, as one trader put it … barfing up my lungs through my esophagus.  My God, why not simply stop trading for the year, once you hit a negative number like -5%?  I don’t care how silly it looks to anyone else, if I’m in the last quarter of the year, and I’m down at 1%?  I might actually think of just stop trading completely for a month or two.  I am that serious about not losing money. 

But they actually thought it a good idea to continue plowing right along stacking up greater and greater losses?!?  TWENTY FIVE PERCENT??  As a professional?

Seriously?! 

There is a lesson here for people who are new ….  

Do not allow intelligent sounding individuals in some aspects of financial media get in your head.

In all honestly, they may actually suck.

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