Home Investing & Trading What Qualities Separate the Best Investors in the World from Everyone Else? Denise Shull Explains

What Qualities Separate the Best Investors in the World from Everyone Else? Denise Shull Explains

by icosuccess

Anthony Pompliano 0:00
Part of this is, you have the pleasure of talking to what I’ll call the full stack, right? Everyone from somebody who is a young person who wants to become a leader in an organization, to somebody who is kind of, we’ll call it middle management or middle of their career and maybe happy where they are and just want to get some better performance or may not be happy and kind of want to accelerate.

But then you also talk to the absolute best in the world as well. And so as you’ve been doing this, what are some of the things that you’ve noticed? The best investors, traders? What do they do that separates them from everybody else? Is it simple things or are they complex and nuanced like that the top 1% what separates the mentally from everybody else?

Denise Shull 0:52
Well, if it’s market, investing in trading, they understand that the market is just a social game. That There’s no like absolute, that it’s really just perception. Like, it’s waves in the ocean of perception changing. And so they’re, they’re trading against other people’s perception, and whatever, you know, however they analyze it, whether they use technical analysis and charts are fundamentals and you know, value. That’s just like a clue to how people’s perception is changing.

So they just understand the market as human beings like waves in an ocean. And it’s a really different way to like to have internalized the market. Plus they use their feelings. I mean, they really do use their feelings, like they know that conviction is an emotion, and they can tell the difference between when they’re convicted in something for the right reasons, or when they’re, like, agitated and compelled to do something, but it’s for the wrong reasons like you know, another event. didn’t go well, the IRS showed up for like in my mind, they’re using they’re, they’re using their brain, the way the human brain is really designed.

Which is something I think neuroscientists really just starting to reveal to us and kind of the assumptions we’ve had about it. Centuries are wrong, but they like intuitively come to that. Like they, through their experience, they get the model of what’s happening, right. And they get like a mechanism of how thinking about it works best, right? And do you feel like

Anthony Pompliano 2:40
that almost, it sounds like it reduces the pressure of some of the decision making right if there are no absolutes if you’re simply playing this social game, and the market is a signal of how everyone within that market feels. It feels like That’s a little bit less of a pressure situation, then if I said to you, you’re going to be right or wrong on a daily basis, is that direct? Correct?

Denise Shull 3:09
Yeah, I think that’s true. Because it’s, it’s not like you have to find a secret answer that’s lurking out there. And, you know, you’re you’re, you have less of a feeling that you’re searching for the holy grail, and more of a feeling that you’re surfing. And so it’s like, keep my balance, you know, and, and ride the waves. And that is easier. It is easier. Yeah.

Anthony Pompliano 3:36
And would it be fair to say the other thing that you said? That I think I understand is that the best in the world are focused more on the decision making process rather than the actual decisions themselves?

Denise Shull 3:53
I think that’s true. I’m not sure I said it, but I think that is true that people have a You know, they have a strategy that they know at once, you know, they want to look at it this way, this way, this way, check this box, check this box, check this box. Now they also understand that they’re predicting an unknowable future, because that’s what it means, right? Like, none of us know what’s going to happen half an hour, let alone tomorrow or.

And by the way, the brain works on a prediction prediction mechanism. So again, they’re like, in concert as opposed to creating friction. But we always say that like knowing the way that you interact with the market, like whatever your strategy is, and sticking with it is definitely a better way to go about it. So that’s a process. It’s your processes.

Anthony Pompliano 4:48
Yeah, explain that more. Right. So like, is that a discipline thing when you say kind of understanding almost like your circle of competency and just sticking to that

Denise Shull 4:59
well You understand? It’s like knowing through what lands does the market makes sense to you? Like often like on Twitter off, but I’ll tell people figure out what your philosophy of the market is and what your philosophy of stops are like, you’ll be like, What’s she talking about? Me? Yeah. First of all, we do everything based on past experience, and like the scaffolding of beliefs. So it helps to know what you believe. Because like all the information you’re you’re interpreting through your beliefs.

So I’m saying look, make sure you know what you believe there are a million different ways to make money in your market. You just have to figure out like, what yours is just like, you know, there’s a million different ways to play football, baseball, basketball, right? Like people have their their specific combination was the same. So you got to figure out what that is like, how does the market makes sense to you? Like, what’s your analogy for like to surfing do it because it’s not a sport like it’s not a sport like football or baseball.

And then how you learn to stick with it. And how do you understand when you’re confident in what you’re seeing and when you’re not. How do you learn to make choices when you’re reasonably confident but not too hot, not over. Which is a process of knowing like your own, you know, feelings like knowing yourself.

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