As someone who industrial plant every bit a coach/psychologist amongst portfolio managers at hedge funds on a regular basis, I accept the chance to run across the concern from several unique angles. I notice that, for the most part, writings from trading coaches as well as psychologists don't capture much of my experience. Just every bit at that topographic point is a large gap betwixt what is written most successful trading techniques as well as the actual techniques employed yesteryear professional person traders, at that topographic point is a pregnant gap betwixt what is written most the success of traders as well as how success genuinely manifests itself inwards settings such every bit hedge funds. Here are 5 lessons I've learned from coaching hedge fund traders/portfolio managers that differ from the mutual wisdom inwards the magazines, seminars, as well as books.
1) Success is Individualized - Many writers as well as coaches, understandably, promote detail models of success, emphasizing mutual features of successful traders. While I produce mean value at that topographic point is a mutual *process* to developing expertise, the notion that successful portfolio managers accept a mutual laid upwards of personality features or trading approaches precisely does non agree H2O inwards the existent world. It's much to a greater extent than of import that portfolio managers empathise as well as operationalize what industrial plant for them than stand upwards for a preconceived model of success. What industrial plant inwards 1 laid upwards of strategies as well as markets may non inwards others; what industrial plant for 1 trader is non helpful for others;
2) The Game is Different - This should become without saying, but it is rarely acknowledged: portfolio management inwards the hedge fund context is a unlike procedure from trading inwards the prop theatre or retail context. As the holler suggests, much of the success of portfolio management comes from managing ideas as well as positions over time, amongst multiple ways of expressing as well as hedging each idea. Too, many of these ideas are relational (relative forcefulness based), non directional, as well as cutting across markets as well as property classes. This requires unlike cognition as well as science sets than trading inwards as well as out of private markets amongst a directional bias. In particular, I notice that writers plough over brusk shrift to the cognition gene of portfolio management expertise.
3) The Environment Matters - Many writings on traders attribute success to private trader characteristics (personality, mindset, etc) as well as plough over really picayune rear to the purpose of the surroundings inwards the success of portfolio managers. The research, platform, chance management, as well as managerial back upwards of traders thing quite a bit--so much as well as therefore that portfolio managers who are successful inwards 1 setting may neglect at to a greater extent than or less other despite employing like strategies. How a portfolio director is managed matters quite a bit, as well as this is poorly understood.
4) Success Starts at the Beginning - Even really large hedge funds as well as investment banks are surprisingly unscientific when it comes to the hiring process. Much of portfolio manager/trader success or failure precisely comes from putting the incorrect people into positions. Because a portfolio director has made coin over the final X years, does non necessarily hateful that they'll brand coin inwards a unlike setting, inwards unlike marketplace seat conditions, or inwards a unlike government of coin management. There is much to last said for the stand upwards for betwixt portfolio director as well as the hedge fund every bit a firm, all the same the stand upwards for is oft non good understood--even yesteryear the firms themselves.
It would last cracking if helping hedge fund managers succeed was every bit unproblematic every bit keeping them unemotional, every bit many writings suggest. The reality of the run I produce calendar week inwards as well as calendar week out is that success is far to a greater extent than a percentage of applying specific science sets to specific marketplace seat weather condition as well as cultivating/maintaining unique ways of viewing marketplace seat relationships that capture opportunity. One size fits all approaches to coaching are of really limited utility inwards the existent globe of coin management. It's all most helping professionals utilize the experience, skills, as well as resources at their fingertips inwards ways that run for them.
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