Questions concerning risk taking and speculative trading for a Bsc dissertation

March 14th, 2012, 12:51 AM

Why do trades go rouge?

Have you seen this movie:

Rogue Trader (1999) - IMDb

It depicts one possibility of how easy it is to get caught up and in over your head on something, that eventually turns into such a monster that there is no way out.

The other answer is quite simply greed. The worlds fuel is greed, so I don't think it is hard to imagine that when someone sees an opportunity to game/cheat/con the system, they take it. It isn't the janitor stealing to go sell stuff on ebay to pay the electric bill or put food on the table.

I remember an old study that showed that most employees that steal from their employer are white collar managers or "higher ups" in the organization. They steal because they feel like they deserve more than what they are being given, so they take it.

You can look at a successful trader and their lavish lifestyle, and it may be hard to imagine they could "want" for anything. Funny how greed works. Greed is not a desire to pay the bills, but a desire to have more than everyone else.

Mike

March 14th, 2012, 01:07 AM

Shichao

Dear Banker and traders,

I am a third-year Management student in Royal Holloway, University of London. I am currently writing a dissertation as a part of my BSc degree. The topic is on risk taking and speculative trading.

I am writing to you to ask you whether it would be possible to discuss some aspects of your wide experience in this area. It would be extremely beneficial to the progress of my research if we could discuss some aspects of your experience in this area in this post. You do not to answer all of the questions and I am very grateful for every response.

Questions:
1. Do you act sometime on instinct when making a deal or do you strictly follow the regulation?
2. Please give a small example If you acted on your instinct before, when and why it occurs.
3. In your opinion, can banker/traders become successful by only following the regulations? (Please give a reason why you think this way)
4. It is common sense that traders/bankers are under a lot of pressure and have to deal with stressful situations. How do you deal with it?
5. Do stressful situations and pressure increase your performance?
6. What is your opinion on the security regulations within your financial institution? (Are they more of a interference or help for surveillance for you)
7. Have you ever breached a security regulation? If yes, why?

Thank you very much

Having been on both sides of the fence, I can give you some feedback but as others have mentioned, there's mostly retail traders here.

1. I assume you're referring to an IB transaction here and I would say both instinct and following regulations come into consideration when making a deal. There is no fine line.

2. An instinctual reaction would simply be a sales process of catering to what your client is looking for. Telling them what they want to hear. Nothing too complicated there.

3. Define success? Success within the company or per their individual goals?

4. Yes, some self-medicate others find ways to overcome emotional hurdles beyond chemical enhancements such as exercise.

5. Yes

6. They were more of an interference. A lot of the regulations are created by those who have never been in the industry and know what the in's and out's are when dealing with clients, etc.

7. Breach is such a strong word... Lol! Never anything that would get me fired or in trouble with the regulatory agencies.

March 14th, 2012, 05:18 AM

I love your avatar, PB. I first saw Wall Street when I was 6 years old, and I remember I was blown away by that phone. "One day I'll have a small, sexy portable phone like that, too"...

March 14th, 2012, 05:48 PM

Lornz

I love your avatar, PB. I first saw Wall Street when I was 6 years old, and I remember I was blown away by that phone. "One day I'll have a small, sexy portable phone like that, too"...

Thanks! Those phones were awesome! I had to change my avatar because someone else is copying me on this forum, lol! I had to take it up a notch! Lol!!! Wall Street was one of the best movies made with regards to the investment world. It motivated me to go into the Biz right after college and work on the Street.

Cheers,
PB

March 14th, 2012, 06:33 PM

@Private Banker

Those phones were awesome, I remember my grandfather bought a new car at the same time those phones had came out, sales pitch buy a car/get the NEW phone

. It rocked sorta like the big boom boxes everyone carried on their shoulders back in the day...geez times flies

Talking about avatars, alot of people put their dogs I tried that, NO go... made me look way meaner than everyone else, guess my dog doesnt have a cute side lol Black/tan doberman

anyways had to chime in on that phone, take care PB

ttys R

Questions concerning risk taking and speculative trading for a Bsc dissertation

Discussion in Psychology and Money Management

Questions concerning risk taking and speculative trading for a Bsc dissertation