Nothing better to get the year started off right than to be called a psychopath. It is yet another reminder that academics, outsiders, and media do not understand how to judge risk.
Risk is not inherently good or bad. There are risks you take with good/full/complete information and those you take with bad/incomplete/skewed information. There are risks from a position of strength or a position of weakness. The information and the lenses in which it is viewed are what make it a good or bad risk, it has absolutely nothing to do with the outcome or amount gained or lost.
Risk starts immediately. Risk is there from the beginning, it does not start once loss is realized. Risk is ever present, the amounts change.
Repeatability. Anyone who takes risks in the financial setting must always take in account the repeatability in the circumstances in which they take the risk. Any schmo on the street can make 100k but a limited number can keep it. You can never stay a hero in this business till you are retired. Get it right or wrong once or a few times does not matter. Be careful in the praise and scorn.
I have not studied enough the reason for the economic collapse to have an answer for the writer but I am certain it is not because we are all psychopaths. There were several factors the least of which everyone was relying on housing prices to increase as they have since the beginning of time. There are always going to be bad apples and they are always going to be viewed as the norm by the outsiders. There are always risks that do not work out. Yes they broke the cardinal rule of risking taking, they lost their ability to take risk tomorrow but that does mean they are psychopaths.
I might be a psychopath but it isn’t because of risk taking. It is because I choose a profession in which at any moment I can be out of business or financial life be impacted negatively. I am different because I am comfortable with the uncertainty. I am willing to throw out everything I learned yesterday to be profitable today. Yes you have to be crazy to work with risk and you also have to watch how your emotions effect your view. Neither of which makes you a psychopath.
I am not complaining or bothered by articles like that, they are a risk I am willing to take to be in the best profession ever.
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