Dang I am feeling that compensation problem though, well said. I wonder if moving from a hyper expensive city to a sleepy cheap backwater would actually just magically fix it.
For example, if I'm living in a house which is too small, compared to the big ones up the hill where the rich people live, and I can't afford one of those because my job doesn't pay enough, but I have spare capital, I might think: I can trade this to make enough for one of those houses. I'm compensating for not earning enough in the job, even if I'm financially OK I still feel hard done by the relative wealth effect. And guess what the trading didn't work, even though it could have. All I needed to do was slam the money into TSLA and/or NVDA and forget about it for a couple of years. So maybe, if I had instead moved out to the country where its cheaper and my house would be adequate compared to the other houses, I wouldn't really care if the trading worked because I didn't need it to. And then it would work, by Sod's Law.
I'm really intrigued by this principle, I think I have this too in a way but I also have good other reasons to trade; more personal time freedom and being able to help more or support my kids and others more. The 'why' question is an important one to answer. Honestly that is.
I think we all have a little of both. I like that you know your why. Now it is just how do we position ourselves to create wealth. What you are talking about could be done in many ways. Making an LLC for your kids. Making a retirement account that you put in something small like 100 dollars a month for your kids until they are 25. In 20 years that is a lot of money. Also building our kids to be self sufficient is also important. The ability to adapt and learn is worth more than money.
Personal time some time can be as easy as looking at our bills or growing our own food. I love my garden and buying food in bulk. We should all do a zoom call on this subject.
All-in Jason and Rumplestiltskin! Compensating, the big 'Why' (not LamboGucci), why the job isn't enough/is too much, true wealth, is happiness measurable et. LFG!
Yup, I'm oddly fascinated by markets in some way I just don't have a great explanation for. I have a Dutch ancestor way back who was a sugar trader so who knows, maybe that's where it comes from. I also tend to gravitate to hard problems, and beating the market is widely regarded as really hard. I would absolutely love to be my own boss trading my own account, so I do not have to put up with other people's crap in a job, but so far it's just much easier for me to take money out of a job than out of the market. I am definitely not in it for the Lambos, haha.
That was what drove me as well at first. I am an introvert. But I also see that I get ideas and my mental health is better when I am not completely isolated. Trading well just takes time. You have all the right instincts for these markets. My missing piece was risk management. Once I took that seriously and thought about how much money I could lose instead of how much I could make, the game changed.
And that's exactly what happened to me. And it gets worse. I had neighbours from hell and the small house was causing my family a lot of stress, so I sold it and rented a bigger house up on the hill because that was possible. I now have massive capital sitting in cash accounts because it's too damn scary to YOLO it on NVDA because of Putin and Trump and all the stupid reasons. Even though the timing would have been actually perfect.
Sounds ike kinda 'good' problem to have, if your family is happy and cash is available and new opportunities will present themselves to you as awakened trader, you are killing it!
I’m not sure if there is a quick fix but the first step is always understanding what it could be. The thing I would tell any trader is cut your size down to the point where trading becomes a fun hobby. See if you still enjoy it. Most do. But the stress is gone. The rest of it, is a journey.
Dang I am feeling that compensation problem though, well said. I wonder if moving from a hyper expensive city to a sleepy cheap backwater would actually just magically fix it.
I'm not English language native, can you explain what is meant with 'compensating' in the context of this great interview?
For example, if I'm living in a house which is too small, compared to the big ones up the hill where the rich people live, and I can't afford one of those because my job doesn't pay enough, but I have spare capital, I might think: I can trade this to make enough for one of those houses. I'm compensating for not earning enough in the job, even if I'm financially OK I still feel hard done by the relative wealth effect. And guess what the trading didn't work, even though it could have. All I needed to do was slam the money into TSLA and/or NVDA and forget about it for a couple of years. So maybe, if I had instead moved out to the country where its cheaper and my house would be adequate compared to the other houses, I wouldn't really care if the trading worked because I didn't need it to. And then it would work, by Sod's Law.
I'm really intrigued by this principle, I think I have this too in a way but I also have good other reasons to trade; more personal time freedom and being able to help more or support my kids and others more. The 'why' question is an important one to answer. Honestly that is.
I think we all have a little of both. I like that you know your why. Now it is just how do we position ourselves to create wealth. What you are talking about could be done in many ways. Making an LLC for your kids. Making a retirement account that you put in something small like 100 dollars a month for your kids until they are 25. In 20 years that is a lot of money. Also building our kids to be self sufficient is also important. The ability to adapt and learn is worth more than money.
Personal time some time can be as easy as looking at our bills or growing our own food. I love my garden and buying food in bulk. We should all do a zoom call on this subject.
All-in Jason and Rumplestiltskin! Compensating, the big 'Why' (not LamboGucci), why the job isn't enough/is too much, true wealth, is happiness measurable et. LFG!
Yup, I'm oddly fascinated by markets in some way I just don't have a great explanation for. I have a Dutch ancestor way back who was a sugar trader so who knows, maybe that's where it comes from. I also tend to gravitate to hard problems, and beating the market is widely regarded as really hard. I would absolutely love to be my own boss trading my own account, so I do not have to put up with other people's crap in a job, but so far it's just much easier for me to take money out of a job than out of the market. I am definitely not in it for the Lambos, haha.
That was what drove me as well at first. I am an introvert. But I also see that I get ideas and my mental health is better when I am not completely isolated. Trading well just takes time. You have all the right instincts for these markets. My missing piece was risk management. Once I took that seriously and thought about how much money I could lose instead of how much I could make, the game changed.
Understood, thanks, excellent explanation
And that's exactly what happened to me. And it gets worse. I had neighbours from hell and the small house was causing my family a lot of stress, so I sold it and rented a bigger house up on the hill because that was possible. I now have massive capital sitting in cash accounts because it's too damn scary to YOLO it on NVDA because of Putin and Trump and all the stupid reasons. Even though the timing would have been actually perfect.
Sounds ike kinda 'good' problem to have, if your family is happy and cash is available and new opportunities will present themselves to you as awakened trader, you are killing it!
Thanks my dude! Well I'm in the arena trying stuff as they say. Grateful for this Substack or I'd probably still have no clue.
I’m not sure if there is a quick fix but the first step is always understanding what it could be. The thing I would tell any trader is cut your size down to the point where trading becomes a fun hobby. See if you still enjoy it. Most do. But the stress is gone. The rest of it, is a journey.
Best trading talk there is, wildly inspirational and giving fundaments used by the top. Thank you!
Thanks Blake. I really enjoyed this one. This was as real as it gets. I’m very thankful that people like you really enjoy a real convo like this.
Pretty interesting. I can't verify these things on the daily time frame though, I think he goes to 30 min timeframes.
Probably a very different time frame from me. Maybe next time I can ask him about that. But the big idea is that it fits him.