efficiency
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In the interest of self-awareness, the predator/prey scenario, the Pareto principle, and provide a little levity, forthwith is a list of investor and trader "classifications". We ALL fall into at least one category.
1. ETERNAL OPTIMISTS: Can't lose and IF losing, doesn't cut their losses. Pride in the buy and hold and long term investor concepts.
2. HYPERACTIVE: In and out with no NET progress. Addicted to random returns. Cultivated by discount brokerages.
3. PLUNGERS: Everything into ONE position. Eh...... less than a smooth equity curve.
4. GROUPIE: Buys WHAT well-known people are supposedly buying. In the US, Warren Buffett comes to mind.
5. PRUDENT: Execution governed EVERY step of the way. Trigger often isn't pulled. Late entries. Selling too soon. Not enough position size to capitalize when one is correct.
6. EDUCATED FOOL: Bound to THEORY but limited in practice. This may include redundant indicators. Using (5) different oscillators may basically tell the "same" thing.
7. HEDGER: Not to make money to preserve capital OR avoid paying tax.
8. TAG-A-LONG: "I'll buy WHATEVER you're buying". This would include getting "advice" from message boards or television shills.
9. MARKET MASOCHIST: Someone to BLAME, such as the evil short sellers or the government.
10. CONTRARIAN: And contrary for JUST the sake of being contrary. Not necessarily wrong, but often very early. A stock's too high, it must go down.
11. SERENDIPITY: Bought the bank stock BECAUSE the tellers are nice. Yesssssssss, there are people like this.
12. GREATER FOOLS: AFTER the fact. The proverbial bagholders. Each share is always owned by someone. They provide a necessary function in the distribution of paper. Weinstein's stage 4.
13. TRENDY: Owns/buys what is in FASHION. Microsoft comes to mind.
14. INSIDERS: Has the proverbial brother-in-law that KNOWS something, but not enough.
15. EGOTIST: Takes more satisfaction from being RIGHT than from adding to their equity.
16. SCALPER: Takes advantage of MOB psychology and doesn't over-stay the party. Repetition and familiarity. Helps to have a floor seat to minimize transaction costs.
17. KAMIKAZEE: EXTREME version of #3, the plunger. Can you say fully margined?
18. OPINION HUNTER: The MAJORITY knows best and their is safety in numbers. Basic herd instinct. This may include the opening hour and feeling left out. Opposite of #10, the Contrarian.
No doubt, you the reader can think of some more (which is another reason why I typed this). I'd like to be aware of those I haven't pondered.
1. ETERNAL OPTIMISTS: Can't lose and IF losing, doesn't cut their losses. Pride in the buy and hold and long term investor concepts.
2. HYPERACTIVE: In and out with no NET progress. Addicted to random returns. Cultivated by discount brokerages.
3. PLUNGERS: Everything into ONE position. Eh...... less than a smooth equity curve.
4. GROUPIE: Buys WHAT well-known people are supposedly buying. In the US, Warren Buffett comes to mind.
5. PRUDENT: Execution governed EVERY step of the way. Trigger often isn't pulled. Late entries. Selling too soon. Not enough position size to capitalize when one is correct.
6. EDUCATED FOOL: Bound to THEORY but limited in practice. This may include redundant indicators. Using (5) different oscillators may basically tell the "same" thing.
7. HEDGER: Not to make money to preserve capital OR avoid paying tax.
8. TAG-A-LONG: "I'll buy WHATEVER you're buying". This would include getting "advice" from message boards or television shills.
9. MARKET MASOCHIST: Someone to BLAME, such as the evil short sellers or the government.
10. CONTRARIAN: And contrary for JUST the sake of being contrary. Not necessarily wrong, but often very early. A stock's too high, it must go down.
11. SERENDIPITY: Bought the bank stock BECAUSE the tellers are nice. Yesssssssss, there are people like this.
12. GREATER FOOLS: AFTER the fact. The proverbial bagholders. Each share is always owned by someone. They provide a necessary function in the distribution of paper. Weinstein's stage 4.
13. TRENDY: Owns/buys what is in FASHION. Microsoft comes to mind.
14. INSIDERS: Has the proverbial brother-in-law that KNOWS something, but not enough.
15. EGOTIST: Takes more satisfaction from being RIGHT than from adding to their equity.
16. SCALPER: Takes advantage of MOB psychology and doesn't over-stay the party. Repetition and familiarity. Helps to have a floor seat to minimize transaction costs.
17. KAMIKAZEE: EXTREME version of #3, the plunger. Can you say fully margined?
18. OPINION HUNTER: The MAJORITY knows best and their is safety in numbers. Basic herd instinct. This may include the opening hour and feeling left out. Opposite of #10, the Contrarian.
No doubt, you the reader can think of some more (which is another reason why I typed this). I'd like to be aware of those I haven't pondered.
whatever happened to just do it and learn from it which some of us call experience !
