Talent/Giftedness In Trading

[jimmiebarton]

Be careful to not confuse limiting beliefs with genetics. Risk tolerance may mean one is not going as big as another trader but it doesn't mean one can't be profitable with a relatively smaller size.

Gringo

Most of my friends are risk-averse. i (try)to explain what i do, my passion;they have zero interest. "i'd never do that"..is the refrain

1 out of 100 expresses interest

 

[dbphoenix]

Most of my friends are risk-averse. i (try)to explain what i do, my passion;they have zero interest. "i'd never do that"..is the refrain

That's because risk-aversion is a learned behavior.

As is fear.

 

[Fundlord]

That's because risk-aversion is a learned behavior.

As is fear.

I think its evolutionary more than anything, if you took big risks back in the hunter gatherer days you would have gotten eaten by a lion or something. If you played it safe and farmed for food instead of taking on big game you would survive hence your genes passed down.

Studies have shows that psychopaths through no fault of there own have little fear and are inclined to take big risks. I wonder if Ted Bundy would have made a good trader

This is biology something we can't change, some really are inclined to take big risks. If you ask 100 people on the street if they would bet 10$ with a 60% chance of winning 10% maybe 5% of people would do it.

 

[jimmiebarton]

That's because risk-aversion is a learned behavior.

As is fear.

you can say that, but you can't know that.

genes influenced by learning(environment)surely. but genes rule.

 

[dbphoenix]

you can say that, but you can't know that.

genes influenced by learning(environment)surely. but genes rule.

Actually, I can. My doctorate is in developmental psychology.

 

[jimmiebarton]

Actually, I can. My doctorate is in developmental psychology.

then you have a bias toward ""development", ie nuture over nature. no surprise

 

[dbphoenix]

I hate when people say mathematicians are the ones making millions, by their ve


I think its evolutionary more than anything, if you took big risks back in the hunter gatherer days you would have gotten eaten by a lion or something. If you played it safe and farmed for food instead of taking on big game you would survive hence your genes passed down.

There was nothing safe about farming for food. Which is why people banded together for mutual defense and protection and usually depended on someone more militaristic to envelop them in a physical envelope, such as a walled city. Those who went it alone out in the boonies were low-hanging fruit.

 

[dbphoenix]

then you have a bias toward ""development", ie nuture over nature. no surprise

"Development" has to do with how the biological organism develops absent environmental influence, not just how it's modified by its environment.

 

[jimmiebarton]

Saying that something has a genetic basis is a statement you can technically say about any human behavior. Applying that type of thinking will just set someone up for failure and give them an easy out when things get difficult.

Risk taking is nothing more than exercising your brain to accommodate a higher level of uncertainty. Just like how one learns to accommodate more weight after years of strength training, he can learn to take on more risk as he exposes himself to more and more situations that require it.

Ok, basically agree. but would you grant me this, sociopaths/psychopaths have greater tolerance for risk? yes, or no?

i'm talking in dependent of your 'bank acct'..not talk7ng good money management here..risk only 1% blah blah i mean ALL IN

 

[Gringo]

I have known identical twins who have different risk tolerances. Evolutionary behavior may have an influence but doesn't explain people from the same family or household having different disposition as regards to risk and decision making.

Blaming something on some far off external or internal factor that can't be changed is a 'cop out'. It gives an escape route as @Baron wrote it above to not take responsibility. Fear of failure keeps many from attempting a change so as to avoid that very fear to come true and face the reality that they can't do something.