The Elements of Character Family Research

Essay: “The Elements of Character” – Family Research
Proposal Questions
1. Whom do you plan to write about? Why have you chosen this family member?
I plan to write about my elder brother. For purposes of this discussion, I will assign him the name Warren. I have chosen this family member for two major reasons. To begin with, he will be easily and readily accessible for this interview. Secondly, we tend to be really close and I have seen him struggle on various fronts in the past.
2. What do you already know about this person? What do you need to find about him or her?
I know that Warren is often passionate and focused in all the endeavors he sets his sights on. I also know that he is a hard worker and does not often give up on his dreams as long as he is convinced that there is some chance of succeeding. I need to find out how exactly he conquered a serious financial and professional challenge he faced three years ago. Warren has been a professional trader (specializing in currencies and commodities) for the last 10 years. Two years ago, he lost a colonial sum of money belonging to a group of clients he was managing funds for. Now, he claims he is nearing 100% recovery.
3. What do you want your reader to learn or understand from your essay?
I would want my readers to learn that an individual can bounce back after hitting the proverbial rock bottom. I would also want my readers to be aware of the relevance of hard work, laser-like focus, and honesty in all professional and personal engagements.
4. What obstacles or challenges might you face as you write? How will you overcome those?
The biggest challenge I might face in this endeavor is grasping the technical aspects of trading. I am fully aware that trading happens to be a largely technical field and I am afraid that the terms used as well as approaches highlighted may be difficult to grasp. I intend to overcome this challenge by seeking his clarification whenever I find a concept difficult to grasp in the course of the interview.
5. When & where will you write the essay?
I will commence with the essay in a months’ time. I intend to visit my brother at his home from where I will conduct the interview, which is expected to take a day.
6. What is the rhetorical situation for you?
Persons can overcome serious obstacles in life if they do not give up or merely adopt hope as a strategy instead of confronting realities. The audience in this case could be persons about to give up on life (and resign to fate) as a consequence of encountering a serious challenge. The purpose is largely motivational and educational. The most appropriate setting would be a motivational seminar.
Interview Responses/Notes
1. How did you get into trading/ How did you become a trader
I started developing an interest in trading stocks at first while in high school. I would observe prevailing prices and make predictions about where the market was headed, and then preview the said predictions after some time had come to pass. This was an intensely exiting exercise for me – and I would say it was the precursor to my trading career. Technically, although I do not trade stocks, some basic principles of speculation whether one engages in futures or stock speculation are largely the same.
2. How were your first years in trading
Trading is a challenging profession. As a matter of fact, not many people make it in this specific field. (Adopting a reflective pose) My first years in trading were difficult and full of misconceptions about trading. I made losses like most traders do during their first year in trading. I would say that things started making sense to me during my second and third years of trading. Perhaps what kept me hanging in there even during those drawdown times was the love for the profession. I would probably have quit during my loss periods (laughs). I was, however, fully cognizant of the fact that if I continued making losses, I would quit and pursue another profession. It would be foolish to keep at something I was perhaps not good at.
3. In your opinion, what would you cite as the main reason for the loss you suffered?
I intend to write a book about this entire experience. Why don’t you wait for the book to come out (laughs enthusiastically). (After a lot of back-and-fourth) Anyway, I could give you a sneak preview of what I will be writing about. I attribute my losses to two things. First, I was using too much leverage relative to my account size. So, when I took several major hits in quick succession, I lost more than 80% of my clients’ money. Secondly, I was giving a fixed return to those I was trading for – effectively meaning I had to dig into my personal reserves (profits made earlier) whenever there was a shortfall as to as to meet payments. This was a foolish strategy.
4. Will you continue trading even after this?
(With a spark in his eye) Yes! Why should I stop? However, please note that with the lessons I have learnt, I would most definitely do things differently this time. I am not likely to continue managing client funds again, but I will sure continue trading for myself and perhaps close friends and family. So, although I am not going to stop trading per se, I will no longer accept outside funds.
5. What would say these lessons you learnt are?
(Adopting a reflective pose) They are many. (Smiling) It would perhaps take us an entire day to recount all the experiences I have learnt. However, I could state the major lesson I have learnt is that clients are not your friends (with some sense of finality in his voice). They are your business partners. It may sound cruel to say this but it is important to note that when you take a major hit, there are those clients who will likely turn against you and threaten court action. This is despite the fact that you may have made a lot of money in the past for such people. However, having said that, there are good clients who will support you all along.
6. What would you tell a person who made a loss such as yours?
The key is to keep your head up. Do not adopt the infamous Ostrich Strategy of burying your head deep in the sand in the face of trouble. I have managed to bounce back as a consequence of recognizing my mistakes, making amendments, and marching on.
7. What advise do you have for up and coming traders?
Trading is not an automatic money-minting business as many have been led to believe. This is a challenging undertaking and like any other profession, experience is of great relevance. So I would advise any person coming into the trading ring to first conduct a personal evaluation of themselves so as to assess whether they really love the profession and have what it takes to survive or they are being driven by the dream of a quick buck.
8. Would you say that this experience has made you a better or worse person?
There is no question whatsoever that this experience has made me a better person – both emotionally and spiritually. To begin with, I am now closer to God than ever before. I came to the realization that a human being has a higher calling than just making money for the sake of making money. After all, money is just an invention of man. Why lose your soul in pursuit of money? Secondly, I am now aware of the fact that man has the inherent ability to get out of most challenges if he applies himself fully towards their resolution.
9. What would you do if you made such a loss again?
I would simply apply the very same strategy if I have applied in the present case if I were to find myself in another fix – either in trading or in other aspects of life. I would just focus on the solutions rather than the problem. I would not adopt the Ostrich Strategy.
10. Are there lessons from your experience for non-traders?
Definitely! The is a quote by Confucius that I really like: A man who has committed a mistake and doesn’t correct it, is committing another mistake. As human beings, we have various weaknesses. One of these is the inability to always make rational decisions, despite the fact that God gave us the sense of reason and thus capability to make wise decisions. However, whenever we realize we have made a mistake, the best strategy is often to pause, reflect, and focus on the best way to correct the mistake. Learning from mistakes also ensures that we do not repeat the same mistakes twice.
Outline
Warren is a classic example of an individual who bounced back from a setback that most would consider fatal. Having lost more than 80% of the funds entrusted to him by clients of his small hedge fund, options were very limited on the exact course of action Warren would adopt. It is important to note that the trading industry is littered with stories of persons who were the titans of their times before they were flamed out by a single or a series of devastating losses. As a matter of fact, there are stories of traders who ended up committing suicide after making a fortune and then losing it all. One classical example on this front would be that of one of the greatest speculators of all time, Jesse Livermore. He took his own life after devastating losses that effectively wiped out his fortune. Warren claims that he is nearing recovery – which means that his clients will have back 100% of whatever they had put into the fund before it went under.
In essence, Warren has managed to bounce back as a consequence of his ingenious ability to confront the problem and seek out the best solutions. He has never been a quitter. His love for the markets has also contributed significantly in further stretching his staying power. Were it not his passion for trading, he would have quit long ago because as he clearly points out, trading is a challenging profession. After wrapping up my interview with Warren, I did some research on the nature of trading and the markets, and realized that indeed, very few people succeed in this endeavor. By some estimates (whose accuracy I cannot necessarily vouch for), only about 5% of traders are often profitable on a consistent basis. This effectively means that a big chunk of traders (95%) loses on a fairly consistent basis. The fact that Warren intends to continue trading (albeit with his own funds and those of close relations) means that he believes in his abilities and is indeed a consistently profitable trader.
I tend to believe that Warren’s abilities in the markets are intertwined with his beliefs and personality. This is more so the case given that his approach to issues appears unique and differs from that of the majority. His ability to face his mistakes specifically stands out. From an early age, we are all taught that losing is bad. We therefore spend most of our lives not only avoiding mistakes, but also refusing to embrace reality whenever we find ourselves in a deep pit. We simply adopt what Warren refers to as the Ostrich Strategy. We refuse to acknowledge we are in a bad situation and while at it, we waste a lot of time procrastinating instead of finding workable solutions. Warren was able to get himself out of the pit by reflecting about his situation and facing the problem head on. He reevaluated his trading and started again – this time more intelligently – with whatever he had left. Now, three years down the line, he claims he is nearing recovery.
These are lessons for each of us in this case – regardless of whether we are in trading or not. History teaches us that mistakes are inevitable because of the weaknesses some of us have as humans. The question is, what do you do to make things right and what do you learn from these mistakes? Warren’s favorite quote sums up everything: a man who has committed a mistake and doesn’t correct it, is committing another mistake. Procrastination is the enemy. And of course, the relevance of our Creator (God) cannot be overstated in all matters relating to our lives. You ignore him at your own peril.