It's that time of year again, when we have the privilege of watching the game's best (arguably ever) clay court player battle the all-time best overall player, on the one surface where victory, until now, eluded him.

For me, you do not have to be the best on all four surfaces to be the best of all time. It is kind of like the markets. I do not think any of the hedge fund greats of all time are making money from every market and asset class better than all competitors at the same time.

In Sunday's match in Monte Carlo , Federer played badly while Nadal played consistently. This is why Nadal again beat the all-time best. What should be encouraging for Federer's fans is that despite his being without his forehand he competed better mentally than he had in any of their previous clay matches.

This is an important markets lesson. By staying mentally competitive in losing situations, we increase our chances for positive outcomes.





Speak your mind

1 Comment so far

  1. Caravaggio on April 26, 2007 8:10 am

    I can’t believe I missed this match. Still, Wimbledon is just around the corner and this tournament never fails to provide many lessons for life and the markets.

    I believe your concluding point about keeping one’s mental faculties in check in a losing situation is extremely important. I immediately think of how Vic felt when his fund hit the skids, and of his subsequent rebound, which is a great testament to his competitive spirit. The notion is also equally important when applied to the daily grind of trading - for example, I follow the blogs of quite a few traders, and it is clearly apparent that their emotional ups and downs are closely tied to their daily p+l (I’m also guilty of this). Surely, this can’t be healthy. It’s easy to put on a confident face when you are winning, but it’s when you are up against it and losing, when your inner strength really comes in to play.


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