Episode 55: How Loss Affects Traders and Why

by robbooker on June 18, 2012

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Rob Booker catches up again with Raghee Horner, the chief market strategist at Interbank FX, and they discuss the flogging of Jamie Dimon and his testimony before the Senate panel on the subject of the $2 billion dollars losses. This topic leads to some breaking news about how traders thought the losses were going to reverse and the fascinating concept of monkeys flying out of one’s butthole.

Raghee and Rob also talk about how traders typically deal with losses and how they treat themselves in response to loss. They discuss how most traders will fear losses far more than they will ever enjoy any gain. Raghee discusses the employee mentality versus the entrepreneur mentality and how traders live in a results economy.

Raghee also gives an example of how the NFL football drafting process illustrates our tolerance and patience for how soon we want a return on our investment. They talk about expanding one’s time horizon in order to keep short-term set-backs in perspective, as well as the concept of point of validity. Don’t miss this one!

Catch up with Raghee Horner here:

Raghee Horner.com

IBFX.com

Trade Forex Futures.com

Twitter: @RagheeHorner

{ 1 comment… read it below or add one }

Bruce Mars June 18, 2012 at 11:55 pm

Always a delight…. I have followed Raghee for quite a while….have one of her books and it is always refreshing to listen to the genuine rapport you two have. The best part of this pod-cast for me is to hear humans who happen to have similar interests of mine! How many times have you been to a coffee shop talking to friends or strangers even and tried talking about FX just to watch their eyes glaze over. The feeling I get when I try to express this GREAT PASSION I have for trading…..die…..right before my eyes because they arent interested or just plainly too dim to get it. Ugh….. Anyways….thank you Rob for bringing this to me. I really need this.. to “hear” it!

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