A Singular Resolution
- Posted by DynamicHedge
- on December 30th, 2012
2012 is coming to a close and most of us workaholics are thinking of what we will do better in 2013. One thing is very clear to me: life is too short to stare at a computer screen all day everyday. To be clear, I love the markets and I will never disconnect with them but I definitely want to transition to strategies which require less babysitting.
I want to spend a little less time at my desk and little more time cultivating relationships. Less time staring at blinking prices and more time developing a business network that will result in a durable edge. Less time agonizing over central bank press releases and more time creating businesses that are news worthy. There is a lot you miss out on if you don’t pry yourself away from your monitors and engage with the world.
One change is that I’m not going to be looking for trading edges in ultra short-term timeframes. I spent a lot of time developing an intraday strategy last year and while the results were good, I don’t feel my time was spent wisely. The margins on being a liquidity provider have been shrinking for years and most of the strategies are not scalable without a significant infrastructure investment. I happily surrender those edges to the HFT robots and focus elsewhere. Focusing on gathering assets is a far more productive use of time.
I’m also going to be active in seeking out some new business partnerships. My partner and I will be launching an innovative SAAS company this year and we’re also working with a couple tech startups on funding and finding clients. I’ve found this to be super interesting and rewarding work. So, in addition to my regular duties I will hand pick two additional non-financial projects where I can add value via relationships or expertise.
Spending more time watching markets will not increase my productivity, but spending less will. I will easily free up several hours a day to work on other productive projects. What are your goals for next year?
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DynamicHedge is an equities, futures and derivatives trader based on the West Coast. He runs a long/short opportunistic relative-value strategy within a proprietary trading group. More
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