The Rise Of Behavioural Economics
The Rise of Behavioural Economics from Trading Game Pty Ltd
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Well At Least He Was Honest
But I’m not primarily interested in the main story. Instead, I’m struck by a line of testimony offered at trial by then-Bear CEO Jimmy Cayne that does not even show up in subsequent court opinions, despite extensive recitals of the facts of the case. The generally “cocksure” Cayne apparently thought that his firm could be in…
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Courage
I have often written that courage is an underrated commodity in trading. In fact it is rarely mentioned. Most of the time the psychological toughness required to trade is ignored by people in the trading education business. It is spoken about by actual traders but those on the sell side of the business rarely if ever…
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When You Should Worry About Failure
We all fail, all the time. We might miss a call with a client because of an emergency work meeting, or miss that meeting because another project has suddenly become urgent. And then we (or our families) get sick, and we have to shift priorities around again. These unsystematic failures are benign, though. They reflect…
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The Delusions Of Others
Last year (been waiting a few days to say that) I wrote about the lies we tell ourselves in order to successfully navigate our lives. Unfortunately, the propensity we have towards delusion means that we are also subject to the delusions of others. My guess is that this is part of the the in-built crowd…
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A Real-Life Trader Talks About “The Big Short”
What surprised you the most in the movie’s portrayal of the impending financial collapse? It was surprising to me that some people, portrayed by Ryan Gosling and Christian Bale and others, actually got to the bottom of some of those mortgage products—figuring out that they were being fundamentally mispriced—when so many others didn’t. We had…
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Lies, Damned Lies And Ouselves
We all lie to ourselves – it is part of the human condition. Sometimes the lies are a simple mechanism design to protect our ego’s. Sometimes they are to create a more palatable or interesting narrative about our lives ala Walter Mitty. Occasionally they are designed to protect our psyche during turbulent moments when we…
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