Letter №5 | August 2026
Epictetus Fund · Monthly Letter · Published September 2026
Letter No. 5: The Cithara Player and the Operator’s Anxiety
Dear readers,
This is Letter No. 5, covering August 2026.
“Whenever I see someone in a state of anxiety, I ask: what is it that he wants? If he did not want something that lies beyond his control, why would he be anxious?
A cithara player feels no anxiety when singing on his own. Yet when he performs in the theatre, he becomes anxious, even if he has a fine voice and plays his instrument beautifully. This is because he wants more than simply to perform well: he also wants to win acclaim, and that is no longer within his control.”
— Epictetus, Discourses II.13, “On Anxiety”
In this simple scene, Epictetus describes a fundamental psychological error made by the Operator. Anxiety does not begin when the market moves. It begins when the Operator demands something from the market that is not within his power: immediate confirmation that he is right, a profit by a particular date, or approval of his decision without first having to endure a period of doubt.
Epictetus taught that anxiety and anger rarely arise from events themselves. They arise from our judgements about those events, and from our demand that the outside world should behave in the way that suits us, feels convenient or appears fair.
For the Operator, this distinction has an immediate practical meaning. The market is not within his control. He cannot order a share price to rise, cancel a correction, choose the day of a reversal or force other market participants to recognise the value of his position. Any attempt to control these things inevitably creates anxiety. The Operator stops trading the plan and starts trading his own hope, fear and frustration.
What remains within his control is different, and it is enough: the size of the position, the liquidity reserve, the absence of leverage, the level at which risk is reduced or profits are taken in accordance with the plan, and the decision not to place another trade when there is no clarity.
This is where the Operator’s freedom begins. It does not lie in predicting the market, but in refusing to let the market destroy his judgement.
Epictetus compared a person to a skilled cithara player. The musician can tune the instrument, learn the piece, keep time and perform with complete attention. But he cannot control the audience’s reaction, an unexpected noise in the theatre or somebody else’s opinion. If he thinks only about applause while playing, he stops hearing the music and begins to perform badly.
The same applies to the Operator. His craft is not to demand that the market immediately confirm that he is right. His craft is to execute the system: choose the correct level of risk, respect the limits, manage liquidity, take profits according to the plan and wait calmly.
The market price is the audience. It may make a noise, remain silent, applaud or leave the theatre. The Operator’s music, however, remains within his control.
This does not mean that a well-executed system will always be rewarded immediately. Sometimes the right decision can look unconvincing for several days, several months or even longer. For the owner of capital, however, something else matters more. A market mispricing may eventually be corrected by the market, but mistakes in position sizing, liquidity or discipline are usually paid for by the owner.
We would therefore rather look wrong for a while than make ourselves vulnerable.
The Operator is not responsible for the direction of the market.
He is responsible for the quality of his execution.
One correct action is worth more than ten anxious movements.
