IQ Debates

Many believe academic intelligence is the direct path to reaping a fortune. Some literally tout their IQ–as if their IQ is money in their bank account. One longtime trend follower drilled that nonsensical stance: “I haven’t seen much correlation between good trading and intelligence. Some outstanding traders are quite intelligent, but a few are not. Many outstandingly intelligent people are horrible traders. Average intelligence is enough. Beyond that, emotional makeup is more important.”

In an interview with another legendary trader, it struck me how he chose to begin. He opened saying that while he was in kindergarten he did not pass blocks. That humor is from a man who has made a fortune north of 100 million dollars trading trends. Yes, he is smart, but his larger point: IQ is not a magic elixir.

Trend following is objective. It’s not about stuff hanging on your wall with fancy seals.

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One thought on “IQ Debates

  1. “I haven’t seen much correlation between good trading and intelligence. Some outstanding traders are quite intelligent, but a few are not. Many outstandingly intelligent people are horrible traders. Average intelligence is enough. Beyond that, emotional makeup is more important.”

    Beyond that, emotional makeup is more importatnt. That one sentence is in itself worth a PhD.

    Discipline – Training to act in accordance will rules.

    Sounds a little like the core of trend following.

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