Investment Manager Disappointment
I am writing this very introspectively. As I have been trend following and trading my own account since 1994. I had always felt that other hedge fund managers or CTAs were somewhat better. I had a very disappointing update from an investment manager my family has been with since 2009. He was down 16.9% in one month. This is unbelievable. He has been in the markets since 1980s. This is a complete lack of risk management!
What does this teach me? To trust myself and my trading abilities. I never had such a draw down. There were years I out performed as well as years I under performed. However I have come to the conclusion….
I trust myself more than any other Hedge fund manager or CTA. Yes, I will always have trades that do not work and long periods of draw downs which seem never to end however I trust myself. The point of this rambling is that you should also develop a trading plan and trust yourself. There is no magical system or indicator out there. It is all about understanding yourself. Your risk tolerances, time frames and expectations. You must have patience and discipline.
It can be accomplished. You can do this with the right mindset.
I take what occurred as a blessing. I trust in my creator and the GD given talents he has given me. I am far from perfect however I try to be aware of risk and how detrimental the markets can be.
Ironically today I had a conversation with a fund of fund manager with approx $1 billion under management. We also discussed the concept of trusting ones self and having manager disappoint. He was disappointed by the performance of managers in the 2007-2008 period. His firm is actively starting to trade tactical concepts via ETFs rather specific Hedge Fund managers.
More so I had one of my one on one mentoring sessions and was told twice this week that the trader wanted to get to a level he trusted himself for his families finances.
Trading is never easy. Always full of challenges. However with a thought out trading plan you can get to a level of confidence of trusting yourself as a pose to so called experts.