Golf & Trading

𝗚𝗼𝗹𝗳, 𝘁𝗿𝗮𝗱𝗶𝗻𝗴, 𝗮𝗻𝗱 𝗸𝗻𝗼𝘄𝗶𝗻𝗴 𝘄𝗵𝗲𝗻 𝘁𝗼 𝗸𝗲𝗲𝗽 𝗾𝘂𝗶𝗲𝘁

When I started trading physical metal in the US, I quickly discovered golf is a second language in the business world. My biggest problem, I was no good.

Golf is not a game of inches or centimeters, it is a game of 𝘮𝘪𝘭𝘭𝘪𝘮𝘦𝘵𝘦𝘳𝘴. Like trading, it can be incredibly frustrating & extremely rewarding. Unfortunately for me, it's usually the former - I am often found in a bush on the side of the course, searching for my ball.

The main reason is simple: I just don't put in the hours. I am never at the driving range working on my short game, or on the putting green practicing.

Expecting to get better at something without putting in the work is a fool's errand. Trading is the same. Hoping to improve at your role, or get the opportunity to move up without stepping outside of your comfort zone is just as silly as me expecting to shoot 80 after last week's 104.

Junior employees, particularly new entrants should be acting like sponges trying to soak up information from each desk you interact with. This doesn't mean working 80 hour weeks and not having a life. But it does mean going out of your way to learn.

Constantly ask questions: Why do we do it that way? What's the P&L impact (there always is one). This is the equivalent to practicing a sport, getting better until the small things seem easy, allowing you to move on to more challenging tasks.

Now, to the 2nd part of today's golf-themed lesson.

The ability for a trader to keep their cool under pressure when millions of dollars are on the line is paramount. So you'd think that we'd all be able to handle the pressure of a golf course. Not always.

A former colleague of mine is a fantastic golfer & a great trader, but on the golf course he can be a headcase!

One particular game he was having the round of his life - on track to break 80 for the first time. Knowing his pre-disposition for golf-related mental breakdowns, I barely said a word to him from holes 10-16. There was an unspoken acknowledgement he was doing very well.

At hole 17 as he walked to the tee-box, our client yells "𝘏𝘦𝘺, 𝘺𝘰𝘶'𝘳𝘦 𝘨𝘰𝘪𝘯𝘨 𝘵𝘰 𝘣𝘳𝘦𝘢𝘬 80 𝘵𝘰𝘥𝘢𝘺, 𝘵𝘩𝘢𝘵'𝘴 𝘪𝘯𝘤𝘳𝘦𝘥𝘪𝘣𝘭𝘦!"

I looked at my colleague & could see his brain starting to short-circuit. He shanks the ball and ends up dropping 2 shots on the hole. It's ok I think to myself, all he has to do is par the 18th and he still makes it, just everyone stay quiet..."𝘛𝘩𝘢𝘵'𝘴 𝘖𝘒, 𝘫𝘶𝘴𝘵 𝘱𝘢𝘳 𝘵𝘩𝘦 𝘯𝘦𝘹𝘵 𝘰𝘯𝘦 𝘢𝘯𝘥 𝘺𝘰𝘶 𝘤𝘢𝘯 𝘴𝘵𝘪𝘭𝘭 𝘥𝘰 𝘪𝘵"

He did not par the 18th, he did not break 80, and let's just say we scaled back using that client's trucking company for a couple of weeks.

Knowing what to say, when to say it, and importantly when to keep quiet are incredibly important attributes in physical trading. I've closed many deals, or got improvements by saying less, not more.

FWIW, this is also great advice for marriage as well.