http://traderpsyches.com/knowing-how-to-play-poker-isnt-enough Trading Psychology, the Thinking Man's Market Psychology Sat, 15 Oct 2011 20:12:01 +0000 hourly 1 http://wordpress.org/?v= http://traderpsyches.com/knowing-how-to-play-poker-isnt-enough/comment-page-1#comment-1193 Varma Thu, 21 May 2009 10:40:25 +0000 http://traderpsyches.com/blog/?p=441#comment-1193 This is the best site! got to read more This is the best site! got to read more

]]> http://traderpsyches.com/knowing-how-to-play-poker-isnt-enough/comment-page-1#comment-581 Per Thu, 26 Feb 2009 18:53:52 +0000 http://traderpsyches.com/blog/?p=441#comment-581 Great one man. I definitly will be following your blog in the future, or at least I keep it in my RSS :) Great one man. I definitly will be following your blog in the future, or at least I keep it in my RSS

]]> http://traderpsyches.com/knowing-how-to-play-poker-isnt-enough/comment-page-1#comment-483 DKS Fri, 06 Feb 2009 21:19:03 +0000 http://traderpsyches.com/blog/?p=441#comment-483 So are you saying if DB hadn't sold him out that those positions wouldn't have taken a loss? So are you saying if DB hadn’t sold him out that those positions wouldn’t have taken a loss?

]]> http://traderpsyches.com/knowing-how-to-play-poker-isnt-enough/comment-page-1#comment-482 north fork investor Fri, 06 Feb 2009 21:07:13 +0000 http://traderpsyches.com/blog/?p=441#comment-482 My take from the WSJ article is that this was a guy and group who were very well hedged from a portfolio standpoint but whose hedges no longer worked due to counterparty risk. (ie if your counterparty is going under, your swap is not going to be priced appropriately.) A lot of parties had the same problem as sellers of credit default insurance like AIG suffered credit downgrades. Boaz' response was to get flatter and flatter; ie increase hedges but retain positions. To sit with those miserable feelings as you say. DB, whose capital he traded made a different decision and sold his group out. I guess there is some lesson to be learned here but it's not about Boaz' psychological trading decisions. My take from the WSJ article is that this was a guy and group who were very well hedged from a portfolio standpoint but whose hedges no longer worked due to counterparty risk. (ie if your counterparty is going under, your swap is not going to be priced appropriately.) A lot of parties had the same problem as sellers of credit default insurance like AIG suffered credit downgrades. Boaz’ response was to get flatter and flatter; ie increase hedges but retain positions. To sit with those miserable feelings as you say. DB, whose capital he traded made a different decision and sold his group out. I guess there is some lesson to be learned here but it’s not about Boaz’ psychological trading decisions.

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