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Philippa was very keen on understanding market making. She is a fairly successful trader and had been successful for several years - trading a large range of stocks from both the long and short sides. She wanted help in understanding those who took the other side of her trades - the market makers. It was important to her, as she felt that her development as a trader to the 'next stage' required such an understanding. When someone says they know their destiny, I always respect that and try to help if so asked. Philippa was convinced that she knew how market makers made their money - "It is obvious - they get the bid-offer spread." Philippa was keen to learn more. So sure was Philippa that no amount of my explanations, examples, case studies, documented trading systems - nothing could convince her otherwise. I knew from experience, that Philippa was a quick study, and so I had no hesitation in agreeing to her request, and so I set about trying to arrange a meeting with a market maker. It had taken some organising to get John, a successful and retired futures market maker who now built his wealth trading stocks in a similar manner to Philippa, to finally agree to meet with Philippa. I had to 'call-in' a big favour. The day after meeting Philippa, John called me and using his words "I am still both both confused and upset." John said he liked Philippa - and they had agreed to meet again, but she just would not hear what he was saying about market making. Everything he said that did not fit in with her prejudice about market making was apparently either ignored or twisted - in the end they spoke about their shared love of American musicals. With their respective spouses they were going in a foursome to have a pre-theatre dinner and see a recently revived musical in London the following month. I had to accept failure - John has a lot of empathy and is a good communicator - Philippa was not going to see the reality of market making despite her enthusiasm for learning about market making and the importance it held for her destiny. The story has a sort of happy ending, Philippa and John and their spouses are now great friends and the four of them meet regularly at each others house parties and occasionally go on holidays to Portugal together - all four are self-described 'golf nuts'. Lessons Learnt Many of us suffer to one degree or another from repeatedly ignoring or rejecting information that requires us to give up a cherished belief - just that many of us, some of the time, do not realise what is going on. Philippa's enthusiasm and getting on with John was not enough for learning to take place. As Idries Shah has it "Hope for improvement is not a substitute for the capacity to improve." Inner Tendency Menu |