Montier has dug out the work of Shiv, Loewenstein, Bechara, Damasio and Damasio and their 2005 paper ‘Investment behavior and the negative side of emotion’, published in Psychological Science. They carried out an experiment showing pretty conclusively that those with this specific brain damage - however caused - could invest without emotion. Those who could feel the pain of loss, on the other hand, were the heaviest losers.Title quote is from Jupiter Sharts character of the film Glory
Originally from the pit at Tradesports(TM) (RIP 2008) ... on trading, risk, economics, politics, policy, sports, culture, entertainment, and whatever else might increase awareness, interest and liquidity of prediction markets
Tuesday, December 02, 2008
And I have no fear. Amen.
Labels:
risk,
stock market,
traders
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