I have come to like these posts which ask us to examine in depth the nature of trading. Today I think and write of very successful traders (speculators, if you like) who do not seem to ever be excited about their profession. This brief comment (from a few years back) by Sir Vic started me in this direction:

"Jim Lorie was one of the most successful speculators I ever knew. He passed away with a vast estate and he did it mainly on a teacher's salary, which was very modest in those days. His method was always to ask his friends for a good stock, buy and hold it, letting go only when it was bought out."

Sounds boring; really boring.

For some reason Jim Lorie reminds me of one of the most successful commodity traders of his day, back-in-the-day. I won't speak his name since his privacy was important to him and he may still be with us. He had a small office on "the street" and visited a nearby deli, where he would have lunch and take the rest of the day off - the rest of every day off. This is where I made his acquaintance. I think he liked me because I did not know everything and did not act like I did.

He shared his trades with me. Very rarely did he have a loser; his winners were usually big winners. He traded in size for himself and he had a small, but very wealthy, client base. He was never excited about a trade. Mainly, he thought about his garden and fly fishing. He had one simple approach:

"Let the technicals confirm the fundamentals."

A book about folks like this would be a snoozer. The general impression about the successful speculator is that he is on the edge of stress every day in an exciting world of near misses.






Speak your mind

1 Comment so far

  1. Jim Davis on March 26, 2015 9:44 pm

    I suspect few top class investors ever get ‘excited’ about what they are doing.

    Gets in the way of clear thinking. Wasted energy.

    The biggest ,regular winners at the racetrack , can rarely be seen rooting their horse home.


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