Why traders keep trading after blowing-up 50%+ of their account?

Discussion in 'Psychology' started by crgarcia, May 7, 2009.

  1. In the case of Neoxx (who is a jack hershey student) and nkhoi (who is a jack hershey student and a moderator here on ET), the reason they continue to trade the system after failing at it for years (on nkhoi's part) and blowing out twice (curtesey of Neoxx) is because they are natural born Kool-Aid drinkers. :p :D :(

    It's conceivable that some people are just born to be sheep.
     
    #11     May 10, 2009
  2. To be honest I'm both, lol. I plan on becoming a financial adviser and I am very convincing.

    Their are good traders that are also very good salesmen look at Peter Lynch, Warren Buffet, and George Soros, people like that do exist.
     
    #12     May 10, 2009
  3. ... and then there are bad traders who are bad (insurance) salesman too.

    A fella named jack hershey is one who comes to mind. :p
     
    #13     May 10, 2009
  4. Lol being a bad salesman and a bad trader is a double kill. Then you really do SUCK.
     
    #14     May 12, 2009
  5. Actually, it's preferable to be a bad salesman if you are a bad trader (and all are bad traders)


    If you are a bad saleman you'll get only a few dollars (which you'll lose)

    Being a good salesman will get you millions of dollars, and you'll be another Madoff, Stanford, LTCM, etc.
     
    #15     May 13, 2009
  6. Well if you think of it that way, that would be good for the consumer and it would be horrible for the money manager.
     
    #16     May 13, 2009
  7. NY_HOOD

    NY_HOOD

    problem is this: there is a big gambling component to trading and people become addcited. thet just "want to break even or make a little bit back" they just want to give it one more shot,they know they can do it,its a new system ect..." its a disease.
     
    #17     May 14, 2009
  8. Buddha

    Buddha

    It is an addiction in most cases. May be some therapy could help if making money is not the sole objective of trading.
     
    #18     May 14, 2009
  9. 50_luma

    50_luma

    Mike Caro has a great article on this subject, I can't find it now, but it is (or was) somewhere on his website, he wrote it in regards to poker, but it relates to trading just as well. Basically after a big loss the remaining chips don't seem as significant as they really are.
     
    #19     May 14, 2009

  10. I am a terrible salesmen... BS involved becomes nauseating... in trading you can't BS the market.



    They trade to keep attempting to get that "big win"... 'if only I can get that BIG WIN everything will be ok and I will get laid'



    And some traders, after reading posts that claim that to be a succesful trader you must blow up several times, get a notion in thier head it is part of an initiation to blow up.... so they blow up.


    Other perhaps are just learning and don't mind to loose the money.... it's just fun.... or 'it's mah daddie's money, i can git sum more.'
     
    #20     May 15, 2009