Jul

30

Asked a trader friend what he thought would make a good trader and he said, "Greedyness." Was a bit surprised, but on second thought I concur. By being aware of it, it does take out the toxicity a bit as well.

Jeffrey Hirsch writes:

John Bollinger once said, “Greed is simply fear of not having enough.” Here’s the full quote from the Almanac:

Securities pricing is, in every sense a psychological phenomenon that arises from the interaction of human beings with fear. Why not greed and fear as the equation is usually stated? Because greed is simply fear of not having enough.

Nils Poertner adds:

Some traders feel sort of guilty of making money and later self-sabotage themselves (subconsciously). It is all a game at the end.

Zubin Al Genubi comments:

Searching for the last 20% can be dangerous and stressful. The first 20%, 80% of the time is easier, though with lower return but also lower and fewer losses. Toning down the greed helps trading as in the long run as its the losses that lower end wealth, more than the gains that compound over time.

Nils Poertner responds:

That is so true. (There is a chance we are having unprecedented manias in coming yrs (not now), but after the disinflationary impulse is over …the wheels may only come off only when nominal rates are double digits imo.)


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