Con-tango

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March 7, 2006
In Lessons
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Deal or no deal!

Listening to NPR’s radio station, I picked up this interesting study. These guys studied the behavior of contestants to the “Deal or no Deal” game show; and discovered two striking features in their behavior:

In a game of high stakes, people lose perspective on the value of money, – “Well, it’s only $10,000” said a contestant gambling her money away; in a different setting, kicking tires to buy a car, $10K would have a much higher value for the same person.

Unlucky players are willing to take much higher risks than in a normal or winning situation…

Let’s have this in mind, next time losses knock on our door, -sideline trading for a while –, to counter this erosive behavior.

Happy trading guys!

March 7, 2006
In Views
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Analysts?

Analysts

I was listening to the radio a moment ago, and Google analyst expectations were mentioned; unbelievable,- although GOOG pps has fallen more than $100 -, one analyst still held his view of $500, and the next lowered his expectations to $425…