Random  thoughts

Do stock traders " work hard ?" - June 19, 2003

This is a question that invites debate whenever the topic comes up. The general perception is that stock traders are a laid back species who do not lift a finger and make easy money or rapid losses. In short, it is a cushy life and involves no hard work, right ?

Wrong !!!

My question is - if a long distance runner runs 10 kms everyday, if a weightlifter deadlifts 300 lbs, it is categorised as hard work. So why not a trader who pores over charts and analyses relative strength comparatives ? Is it something that involves no effort, concentration or brain power ? Accountants and bankers sit behind desks too, but are deemed to be working. Stock traders are doing nothing different.

Only someone who has taken exposure to stocks in front of a computer screen will know just how much discipline it takes to hold a position while the prices tick up / down. The effort it takes to hold back emotions and listen to the inner voice of reason and bank on nothing but self-study to stand by one's conviction against adversity of price swings. Believe me, the pressure can be very intense. The levels of fortitude required is not quantifiable in ordinary terms. Stock traders don't just "work" for the five-and-half hours that markets are open for trading. A good technical analyst will work twice the number of hours during off-market hours, watching charts, tracking his / her favourite counters. Keeping track of news items that may influence stock prices in the near term. Anything that can impact his positions in the markets.

Sure, it doesn't involve sheer physical exertion, but trading stocks is all about working smart - not just working hard !!!

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