This is a Guest Post by AK of Fallible
AK has been an analyst at long/short equity investment firms, global macro funds, and corporate economics departments. He co-founded Macro Ops and is the host of Fallible.

Today we’re going to talk about 3 trading and investing lessons we can all learn from the fictional hedge fund king himself, Bobby Axelrod, from the Showtime series Billions.

The first lesson Axe can teach us is how important it is to have a trading plan. Too many “traders” act like suckers at the track… hoping, betting, and losing. “Hope” isn’t a game plan though. You need solid rules that you can execute on day in and day out.

And honestly these rules aren’t even that hard to put together. Most of the time they’re extremely simple. Some of the greatest traders have rules that are so simple that if you read them you’d think they were just screwing with you.

The truth is you don’t need some fancy, complex trading plan. You just need something that you continuously follow. That’ll put you miles ahead of everyone else in the market who are just wishing upon a stock.

The second lesson Axe can teach us is about the importance of following price action. Price action tells you exactly what the smart money is doing. It’s easy to see where they’re betting and just how big. And remember, the key to being on the right side of the trend and making money is to trade with the smart, big money.

The third lesson we can learn from Axe is how to swallow our pride and take a loss. The lesson here is that you need to be able to take a loss and move on… no matter the damage it does to your ego. You shouldn’t be overly tied to your investment theses. Don’t be obsessed with being right, just focus on making money. You have to get your ego out of the way and take those losses when you need to.

Make sure you watch the video above to learn more!

And as always, stay Fallible investors!