Uh oh: "Share Traders More Reckless Than Psychopaths, Study Shows".

Jim Lackey writes:

Wait, is it a trader, a stock broker, or a banker. The article sources all 3 and they are very different men. The differences are the same as butcher, baker, and candlestick maker… yet perhaps there is some irony. Traders are honest as can be about their trades, losses, lucky breaks and fair dealing with their cohorts, but on the other hand we all carry a copy of Rand in the right hand and hit the buy bailout button with the left hand as we know the markets are in the short term set up to bail out the bakers and candlestick makers… ummm, yeah, I realize we are the butchers. 





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1 Comment so far

  1. Leo on September 28, 2011 2:59 am

    The study (as least as quoted from the article) doesn’t seem to be very convincing. Even if the conclusion is true for traders, I am not sure what exactly it means.

    Consider the fact that about 90% of traders lose and 10% win, so which group of traders does it refer to? From statistical point of view, the researchers must have many more losing traders in their subjects. So since their conclusion is based on statistics from their subjects (mostly losing traders), the conclusion clearly is referring to the losing group.

    On the other hand, neuroscience teaches us that normal human brain is not well suited for the modern world, let alone for trading. The successful traders must know this and somehow have overcome this human deficiencies in order to win. So can we say that those winning traders are abnormal human beings, and so in some sense similar to psychopaths? Is the research just reflecting this view and referring to these winning traders?

    So I am not sure if the research conclusion is meant as a critique or a praise in this case.


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