An interesting question....

Discussion in 'Trading' started by lilduckling, Feb 2, 2006.

  1. What if...........Someone entered the world of trading.... but with a twist. That person would be given ... say 40k of starting capital.... and be given 2 years.............. to years to lose all the money. That would be his task....his GOAL..... he must be rid of all the money within 2 years. To add stress to the situation.... if he/ she failed to lose all the money within 2 years.... they will have to forfeit their home, and all assets, and be imprisoned for 10 years.

    Question: would this scenario cause someone, who just started the markets..... to make the same mistakes we all do, but because of the circumstances, cause this person to immediately start making money right off the bat? The psychological demons would be the same... except in reverse.

    What do you think??
     
  2. Sorry, but I think it is a silly question. I think that most people would be able to lose the full 40K quite capably and well before the allotted time.
     
  3. tomcole

    tomcole

    you could do it in a day with options!!!
     
  4. Guys.... remember... hes not trying to make money... hes trying to lose it.... thats his goal. Why do you think a brand new trader just starting off could trade the right way right off the bat? He can go long or short. Your saying a brand new trader would have no problem making the right mkt calls??
     
  5. jim c

    jim c

    i know what are trying to get at...losing the $ wouldnt be too hard. just go to H eurodollars and buy the offer then sell the bid over and over. you are thinking it should be equally as hard to lose as to win. interesting thought though. jim edit...i had it backwards
     
  6. OK fair enough.... but for the purpose of this excercise... lets just stick with stocks and Index futures....and omit all types of commisions
     
  7. jim c

    jim c

    right..in theory i think you would be right. its an interesting concept. let your losers run and cut your profits short. if a new trader was given this scenario one would tend to think it would be hard for him to lose all the $. jim
     
  8. If winning was as easy as losing, and one was just the flip side of the other, then a lot of people would simply start walking backwards when they got well and truly lost. Doesn't work that way.
     
  9. Find something with a wide spread and just buy the ask, sell the bid. Make some market maker's day.

    Many traders can get the idea behind the trade right, it's the spread and commissions that they can't overcome, over time.
     
  10. If you did that you would still secretly be trying to win.... versus , say.... having a gun to your head and being shot if all you money is not gone.... its about how we act and make decisions based on psychology under stress.
     
    #10     Feb 2, 2006