I had a very enjoyable conversation recently with Sean McLaughlin on his podcast “Trading with @chicagosean.” We talked a lot about my formative years and how that prepared me for an unlikely career in the financial industry.
I studied Music and Psychology as an undergraduate at The Ohio State University, and I was fairly certain I would continue graduate studies in music at some point. But from the moment I learned about technical analysis and found people who studied what investors were thinking and feeling, I was completely hooked.
Over the years I’ve met a number of successful money managers, traders, analysts, and individual investors who have done well in the financial markets and also have a passion for music. Some play in rock bands in their free time, some wake up early to strum a guitar before heading into the office, some sing in community choirs in the evenings.
So why are so many successful investors into music? To rephrase… why are so many successful musicians also successful investors?
Learning to play an instrument is all about studying the great masters that have come before you and trying to imitate their techniques. You spend hours and hours trying to get your instrument to sound just like the one in the recording. But performing well isn’t just about imitating sounds and nailing the basics. It’s the creative process of making the instrument your own; developing your own style and improving your musicianship.
In one of my college music theory courses our assignment was to compose a short piece using a 20th century technique called a tone row. I don’t remember finding this exercise to be especially fulfilling from a musical perspective, but I do remember making it an entertaining exercise. I actually remember incorporating the ESPN SportsCenter theme into the piece.
Given a boring assignment, I made it interesting by thinking a little differently.
The financial markets are not static, they are dynamic. Mastery of fluid markets requires a mastery of fluid thinking. You need to be ready to adjust your thinking based on how the world evolves.
Good investors study how successful investors have found success. Great investors develop their own unique approach by thinking creatively about how to adapt to the changing market environment.
I was fairly certain I was going to be an orchestral conductor, which means you’re standing in front of a full orchestra trying to get them to communicate one emotional message all together. While making eye contact with a stage full of musicians, you glance down at an orchestral score and make a bunch of quick visual assessments.