Maybe that explains Hillary's cattle futures trading?
Posted on 09/23/2005 6:13:21 PM PDT by LowCountryJoe
"Wanted: psychopaths to make a killing in the markets."
Such an advert will not be appearing in the world's newspapers any time soon, but it may have a ring of truth after research revealed the best wheeler-dealers could well be "functional psychopaths."
A team of U.S. scientists has found the emotionally impaired are more willing to gamble for high stakes and that people with brain damage may make good financial decisions, the Times newspaper reported Monday.
In a study of investors' behavior 41 people with normal IQs were asked to play a simple investment game. Fifteen of the group had suffered lesions on the areas of the brain that affect emotions.
The result was those with brain damage outperformed those without.
The scientists found emotions led some of the group to avoid risks even when the potential benefits far outweighed the losses, a phenomenon known as myopic loss aversion.
One of the researchers, Antione Bechara, an associate professor of neurology at the University of Iowa, said the best stock market investors might plausibly be called "functional psychopaths."
Fellow author, Baba Shiv of Stanford Graduate School of Business said many company chiefs and top lawyers may also show they share the same trait.
"Emotions serve an adaptive role in speeding up the decision-making process," said Shiv.
"However, there are circumstances in which a naturally occurring emotional response must be inhibited, so that a deliberate and potentially wiser decision can be made."
The study, published in June in the journal Psychological Science, was conducted by a team of researchers from Stanford University, Carnegie Mellon University, and the University of Iowa.
Case in Point: George Soros.
This rules out the protectionists from making a killing in life now, doesn't it? Although I am far from convinced that they're free of any brain damage!
Robert Hare said the two places to study psychopaths would be a prison system and a stock exchange. Up until 5 years ago he could have included the whitehouse in that...
What's next? Psychopaths make the best CEOs? Psychopaths make the best political leaders? Psychopaths have the most fun?
Obviously, they haven't seen my ex-wife try to manage a checkbook.
The problem with this study is that it may have been loaded with unrealistic scenarios that may not happen in real life. The article does not state how psychos deal with high-risk moderate yield investments.
I always understood that hypomanics make the best traders becasue only hypomanics are grandiose enough to lose 50 million on the overnight markets and know that they will make it up tommorow.
I'm not a psychopath, I'm sociopath. There's a difference. A psychopath doesn't know the difference between right and wrong. A sociopath knows the difference but has no conscience, and therefore doesn't care.
He could have some interesting case studies to work up in the halls of Congress!
"I always understood that hypomanics make the best traders becasue only hypomanics are grandiose enough to lose 50 million on the overnight markets and know that they will make it up tommorow."
That's why it is said "Only invest in the stock market what you are willing to lose."
About a year ago I owned Petsmart while it was trading at about $22 a share. It started falling like a rock because some stupid news and market jitters. I sold a bunch of other stocks and started buying. I bought at $16, then again at $14, then I bought a bunch more at $12. It finally bottomed at about $10 a share. About 3 months later it was back up to $30 a share. I sold every share I had and walked away.
I wish I could denounce this, as I am a daytrader, I will soon be a Swing trader, as it does take a sociopath or psychopath to do it. I have been dirnking far to much, over the stress of losing $20,000 a day, then gaining $50,000 the next, only to lose $75,000 the next. :(
What's that old saw-
"You don't have to be crazy to work here- but it helps."
Well? Where are they putting their money?
I read another summary of this study, and it was less sensational. The implication was that emotionally suppressed people ignored fear and emotions that could prevent them from taking advantage of trading opportunities. However, that same absence of fear probably interfered with their judgment on longer time horizons.
Interesting article Joe. I have always thought that alot of CEO's were psychopaths or sociopaths. What they pay themselves and do to others, I wouldnt have the conscience for.
Maybe that explains Hillary's cattle futures trading?
What happens when the insane folks start getting rich? They'll get their lungs ripped out with taxes! Then where will we be? We might have some new thinking Americans on our hands! Heaven (oops, I should say Gaia) knows we can't have that! These people might mobilize and start a tax revolt! We might wind up with the inmates running the asylum!
(Come to think of it, they could hardly do any worse than what we have now, really, but there's just one problem-who will administer the drugs?)
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.