Trading Philosophy - Noob Thinking
Trading, Ego, and the ‘Noob’ Mentality: Removing External Validation
This post is less of a discussion on trading and more of an exploration of what it means to pursue trading as a career path. It’s about navigating the pressures of a path that resembles starting a business—marked by high failure rates and the constant question of whether it’s truly worth pursuing. But trading comes with its own unique challenge; the stigma around “day trading” which makes others see your passion through a not-so-nice lens. Just as people dismissively label online entrepreneurs as “drop shippers,” traders often face similar misconceptions. My hope, from my own experiences, is that this gives you a look into a retail trader’s frame of mind, the notion of ego, and why “Noob Thinking” leads to a life of mediocrity.
A Video Worth Watching
As I scrolled YouTube as I often do, the algorithm gods blessed me. You know sometimes you see a random video with a low view count but the title and thumbnail of the video seem a tad interesting. Interesting enough to at least click it. This is exactly what happened with this video from George Hotz' livestream.
George Hotz, alias geohot, is an American security hacker, entrepreneur, and software engineer. In the video, George proposes a different perspective on how to "not be a noob" in life. The core message is about rejecting conventional thinking and societal constraints that limit personal freedom, skill development, and innovation. George challenges his stream to stop seeking validation through traditional means like degrees, certifications, or stable jobs, which he argues are traps set by societal expectations. Instead, he urges individuals to focus on developing real skills and independence. To summarize he states:
First step to not being a noob is to not think like a noob. If you think like a noob, you're a noob. Noobs ask questions like, 'If only I had a college degree, the world would open up to me, right?' No. That's newb thinking. You're looking for validation from other people instead of skill.
Do you really own anything anymore? When you buy a PlayStation from Sony, do you own it, or are they just renting it to you? When you buy a car, is it yours, or are they just renting it to you? The mentality that 'I need something from others to succeed' keeps you a noob. Everyone wants you to fit into their grid, their system. Why do we hobble in front of HR? Why bow to a corporation that says, ‘Oh, you gotta get through HR, man? Start your own thing.
If you're asking me, 'How do I hack?' you've missed the point. The world wants you to be another drone slotting through the system, thinking it has legitimacy. Politics? It’s just another game to trap you. Your vote is a consent to your slavery. There's no class war. The only real difference is there are noobs, and there are people who aren't noobs.
The system isn't a conspiracy, like there's someone pulling the strings. It’s just a decentralized dystopia—everyone buying into everyone else’s limitations. Power isn't what you have; it’s what the other person thinks you have.
To stop being a noob, stop engaging with the system. Don’t let validation define you. Build systems that don’t involve social capital, legitimacy, or who you are—just pure technicality. Bitcoin’s a great example. It doesn’t care where its coins come from. It’s just technicality, not artificial barriers of control.
You want to stop being a noob? Quit your job. If you haven’t done that, you're not ready yet.
Now this is obviously a little extreme, but hopefully, you get the point. There are 2 notes on what he is referencing here, as to not get confused.
He is not talking about a grand conspiracy theory. There’s no global cabal or puppet master behind the curtain pulling the strings. It started from a societal effort to become more efficient. This efficiency isn’t a conspiracy but could be seen as a “natural” progression. But sometimes this type of progression can be misinterpreted as conspiracy. The book referenced below really solidifies this point.
Ego - I think for most people, the ego plays a big role in this type of societal behavior. It is natural and I am also pulled by it every day. I am a mere mortal too. Just take trading as an example. Retail trading is a weird concept because it really pushes the limits of ego. In the first few years, you are unprofitable, struggling to learn through online resources with trial and error to see what works and what doesn't. You have people you know ask how much money you made or what your PnL is. And it is only after years and years of studying the markets, that you make it past the pain of being unprofitable. There is a Reddit post I saw recently that describes it perfectly. (Also, for reference I am still in the Pain category currently)
Seeing Like a State
George talks about a book called Seeing Like a State: How Certain Schemes to Improve the Human Condition Have Failed by James C. Scott which doubles down on the notion of societal constraints and noob thinking.
I would HIGHLY recommend this book review by Scott Alexander from Star Codex
After watching the video, I read the review of Seeing Like a State, then I read the entire book thereafter.
Changing Perspectives
It really changed my perspective on society and life as a whole. Why do the things that we do? Am I doing this action to get validation from others or am I doing this because I actually enjoy it?
These types of questions would pop into my mind. And really it was a big reason why, I paused my pursuit of the CFA program. For anyone who doesn’t know the CFA is a financial designation. It stands for Chartered Financial Analyst® (CFA®). AND DON’T YOU DARE FORGET THAT COPYRIGHT SYMBOL BECAUSE THAT IS EXTREMELY IMPORTANT!
Because the CFAI (CFA Institute) actually owns this qualification. In essence, they have the right to take it away at any time, which makes sense of course. If you are a doctor and you do some nonsense, it’s fair to say that you shouldn’t practice medicine. In finance, you have a fiduciary responsibility to the people you affect. However, one interesting thing about the program’s little copyright symbol (®) that is put beside the CFA letters, is that you are actually renting out the designation. If you get a PhD in mathematics, you technically own those letters behind your name. If you become a CFA holder, ie. pass all 3 levels and get the appropriate work experience, you are given the right to rent those 3 letters and graciously put those letters behind your name.
Validation and Being a Noob
I hope you can now see the connection between the “Noob” mentality and the skills and actions of what George was advocating.
After not passing the third CFA test, I re-evaluated why I was even pursuing the program in the first place. I realized I was doing it (for the most part) for external validation. I thought, hey because I am not profitable, this destination will prove to other people that I am worth my salt. But I asked myself, what is the ultimate goal for getting those 3 letters behind my name and the truthful answer was to become a great trader. And what do you know, having 3 letters behind your name doesn’t really mean much if you can’t convert that into PnL. So…I made a promise to myself, that I must be confidently profitable in my retail trading account before continuing on the CFA pathway. This way it was not for external validation but a way to further my understanding of the world of finance.
It also may seem like I'm sh*tting on the CFA program and the people who have completed it. I am not, It is probably one of the best resources to lay a strong foundation. I strongly promote the CFA program because of how robust it is and highly recommend it to anyone interested in the field of finance. A great example of someone who is a CFA charter holder and has the portfolio to back it up is
at Pristine Capital.I know this post was all over the place and might not have connected all the dots but all this to say, don’t be a noob… Don’t find validation from others or society, because in the end none of that really matters. It’s your own internal drive, skills, and passion that truly matter at the end of the day because, if you hate the job you go to every day, do 3 letters behind your name really matter?
-F4VS
Index:
Trading Philosophy - Eating Glass and Staring into the Abyss
Trading Philosophy - Technical Analysis and Printing Money in the Sky
Trading Philosophy - Why Famous Investors Have Philosophy Degrees...
Trading Philosophy - Noob Thinking
