Who are the wartime investors?I used to be surrounded by wartime investors when I was on the floor of the Chicago Mercantile Exchange.Most hedge fund managers are wartime investors. Many tactical investors are wartime investors. Market makers are usually wartime investors. Day traders are often wartime investors. Even if you’re not very good at it.
Traders love volatility.Back in the 80s it was the pork belly Futures Trading pit that had the most volume. It was not because pork bellies are the most important or valuable commodity, it was because they were the most volatile. Traders love volatility. It has always been this way and it still is. I’m looking at you Mrs. Bitcoin investor. Traders need volatility to make more money. Back when I was a floor trader, I would usually set a daily goal to reap 70% of the daily range. The bigger the daily range, the greater my profit opportunity.
Crises engender volatility.So if Traders love volatility and crises engender volatility, do Traders love crises? Yes. Wartime investors love a good war.If your inner investor gets excited – not afraid, by a crisis – you are a wartime investor.By knowing yourself better you give yourself a chance to match an investing strategy that is tailored not just to your risk profile or some big objective, but to your mentality and decision-making. The advantage of doing this can be significant. In fact, the more active you are as a trader, or investor the more important this becomes. It is easy to be objective and emotionally distant from your money when your check interval is low.Here are some examples how investors can better match their strategies to their personality type:
- Patient people can take a longer-term investment horizon.
- Detail-oriented people can tune their risk management and exit strategies in light of the possibility of greater conviction in an investment resulting from their more in-depth research
- Intuitive people can have faster-moving investment strategies that capitalize on the stream of consciousness and rapidly adapt to a changing environment.
- Thrill-seeking investors can practice high-concentration, high diversification strategies with systematic risk management.
- Cautious people can construct portfolios for reliability, consistency and decreased volatility.
James’ professional orientation points at the zenith (and sometimes nadir) where technology and investments intersect. He is a Fintech entrepreneur and has served twenty years of a lifetime sentence.
James is a patented inventor, quant pioneer and investment manager. He is the founder of Gravity Investments, a unique investment and technology services firm centered on James’ inventions for diversification measurement, optimization, visualization, and analysis. In the development of the platform, James has pioneered A.I applications, diversification attribution, down-side diversification, portfolio re-optimization, full-lifecycle strategy optimization, programmable investment policy statements and core-satellite optimization techniques.
In working with advisors, funds and money managers as both a strategic sub-advisor and software consultant, James has consulted and trained hundreds of professional investors on portfolio design and optimization. James has a unique ability to look at any investment process and find practical, intelligent and often quantifiable opportunities to improve the investment product.
Inspired by the work of Nobel Laureate Harry Markowitz and the efficient frontier, James has championed and pioneered the science of diversification. James’ technology has advised
or assisted in over 30 Billion dollars of investor capital. His vision of a more perfect investment management system is at the heart of Gsphere ( www.gsphere.net )
His passion for performance, curiosity for the unknown, and drive to excel empower his service to investors.
James is Founder and CEO of Portfolio ThinkTank (the B2C company) www.portfoliothinktank.com, Founder & Chief of Financial Engineering at Gravity Investments www.gravityinvestments.com (the B2B company) and Chief Investment Officer at Gravity Capital Partners, a wholly owned SEC Registered Investment Advisor.