Conclusion
Let’s return to our original question: Do expert trading professionals automatically make expert investors? The answer is yes — and no.
As we’ve described, there are a number of admirable qualities within our trading community: high levels of self-confidence, competitive thirst and analytical acumen, among many others. These qualities define us as individuals and form a strong foundation for the successes we’ve achieved in our careers.
At the same time, our trading strengths can all too easily spell our downfall if applied unchecked to managing our personal wealth. There, patient, team-oriented knowledge, temperament and discipline rule the day. Margin of utility and quality of life (versus venture and timing) become key. A long-term outlook based on far-reaching personal goals is essential. Most prized are the ability to disregard the near- term noise, and the stamina to remain still when all around you is chaos. As such, we’d say no, the transition from high- energy trader to steady investor is not nearly as automatic as might be assumed.
That said, perhaps no group of individuals is better positioned to adeptly make that transition than we are. In imagining the possibilities available to the trading professional who is dedicated to converting his or her earnings to durable family wealth, we are reminded of these words by President John F. Kennedy in a 1963 address to the Irish parliament (from whence our own ancestry happened to emigrate to America):
“The problems of the world cannot possibly be solved by skeptics or cynics whose hori- zons are limited by the obvious realities.
We need men who can dream of things that never were and ask ‘why not?’ ”
Guided by these ideas, take a fresh look at your personal portfolio today. Do you have both the energy and the investment-minded expertise to go it alone? Why not consider a team approach, in alliance with a fiduciary wealth manager, as described herein.
Copyright © 2012, The Cogent Advisor, LLC
