- You have all the reasons to use other people’s fruit, whether it is research or technology, and always build on top of giant’s shoulders instead of starting from ground zero.
- Real financial information is only possessed by the hands of a few. All news stories are made up, or paid to be made up. Normal people are fed with manipulated version of what is really happening. Fundamentals are what companies want other to see thanks to the ever so complicated accounting rules. News can easily mislead the smartest analysts nowadays. Macroeconomics data is even worse, whose reality can be easily bend by the government trying to goal-seek anything they want everyone else to see based on raw surveys. Not to mention much of the economic activities operate in underground market. This is why the quants do so well because they don’t read the news.
- Market is always priced in with all possible events in the moment. Same as people’s lives. We are always living in the way we want ourselves to be the most. People complain because they don’t realize it.
- Proprietary trading is research-oriented rather than goal-oriented work. It is really hard to know the right track. Only if you spend a lot of time in both the right and wrong directions, then you will be able to discern the correct way. As there is an infinite amount of things to learn or trade in this world, once a right path is set, be faithful to it. On the other side, we need to provide us with equal weight of getting exposure of new knowledge and practical experience. When you have hit a wall, try higher education or an occupation to improve your practical knowledge. This is never the other way around.
- Remember best is not being the most hardworking. Not what you know but who you know.
- In proprietary trading, creative thinking is the most key aspect for the handful who can actually beat the market. Just like how repetitive products cannot beat the industry unless you innovate. When TikTok was founded, it was not just copying similar products. In fact, it was innovating in the Chinese market according to its founder. Therefore, it is important not to work excessively and always have a fresh mind. Because you want ideas to strike first when absorbing the same information. Meditation is a good exercise to train your mind.
- Bad assumptions can kill you.
- Stress is common in this field. And scientific evidence shows stress has direct adverse impact to your immune system and mental health. Also it is imperative to be 100% logical when things don’t go your way. So always leave yourself a way out of this.
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