Hi, I will begin my Bachelor thesis in a couple of weeks and I am trying to come up with an interesting topic to write about. I will do it at one of the larger banks in my country and my boss at the bank is leaning towards something that revolves around stress testing (I'm in the risk management department). I would appreciate any suggestions regarding topics or any useful links that can help me. Thanks
The vast difference between trading with nothing to lose vs. trading with everything to lose. Or, Calculated risk vs. Unknown risk: the emotional stress difference. There was a study done some time back about stress in marriage. When arguements happen between couples, parts of the brain responsible for intelligent thought shut down. They forget what they're even arguing about, and survival defenses ensue. The same is true for traders fearing catastrophe. There's plenty out there on risk management and the math behind it, but if you could present a method of risk management and the MENTALITY with which a trader must view that risk in order to remove stress and allow higher brain functions to remain "on," I'm sure you'd have a best seller.