For day traders instead of Paris, the 1st of April 2009 was staggering.
The day comes to addicts and violent movements of schizophrenic dose Supreme volatility on the index: -2% (one hour), then 2% (in 3h30), then -2% (in 3h30), and finally the ultimate thrill ecstatic: 3% in 30 minutes on the thread, just before close of business.
For swing traders and overnights in the trash, the day of 02 April 2009, following the euphoria of 1st April 2009 was no less juicy than panting.
The CAC opened in Bull Gap of 2%, and spread of 2% in less than two hours.
All values in the SRD exploded upward pressure … how insane a Jeroboam of several storeys built for Greek Titans: highest 15% were legion that day.
In short, between two short terminals 1 and 2 April 2009, there were 15% of volatility (increase + decrease in the expectation that no major waves, those of 2% peak to peak), and no less than 8 % volatility to rise only between the 01/04 – 15:30 and 02/04 – 11.30 … half a day listing!
Yet few are able to surf these curves divine.
The continual changes of direction, coupled with amplitudes out of the ordinary, left the majority of traders in a state of petrification, people on the sidelines by the dazzling shots.
And in those situations I remember these words uttered with Michel Audiard banter: “A financier, Sir, a financier, it never remorseful. Even no regrets … No, just the pétoche. ”
It’s hilarious, but partially wrong, because at the end of 2 April 2009, an incredible mass of traders will be thinking just whipped violently, like the members of Opus Dei, as they were steeped in regrets!
The investor works in such a way that it always seems to be the turkey ridiculous game of two fundamental errors: you buy … prices fall … you sell … they fly away …
Grrrr … it never seems to be in the right direction, or in the right place at the right time or the machine is ready regrets purring.
The regrets are the result of a slow process occurring “cold”: “Why did I buy this?”, “Why have not I sold earlier?”, “Why did not I buy?” … and portfolio review of missed opportunities is the generator Supreme regret that mobilize to no end almost all the cognitive resources. So how is dépatouiller with this pervasive feeling and not very productive?
In fact, we can not!
Many researchers are hard, applying the principle of Nietzsche: “Also, dig deeper! , Have discovered how our brains are structured investors.
And, recent research in neurobiology emphasize, that in our brains, there are neither more nor less than a real circuit specializes in regrets.
We are therefore naturally structured by Mother Nature, and natural selection to regret!
The reasons and the exact conditions of the establishment by the laws of evolution of these systems robust regret remain obscure.
Researchers cautiously whisper: “It is possible that avoidance anything that can be experienced as a loss probably helped our ancestors to stay alive. Survival at all costs through the questioning and regret in some way. ”
It will, after reading a lot of work on the subject, the degree of regret from the strictly financial assistance is determined not by what happened, but it would have could occur.
This psychological anchor to the unrealized potential is called technically against factual thinking. Regret, through the thoughts against factual, are oblivious to the submission of alternative imaginary worlds, and the intensity of regret is that easy to look into these worlds.
Regret is a pointless act, because as a comedian said: “We always regret anything … because you can only regret.”
Science, through advances in brain imaging, designated in our minds the exact spot where the maturation of our regrets done.
It is in the prefrontal cortex, particularly in the area of 10 Broadman, ie to simplify between the eyes, that is the arrangement of neurons malicious wrongdoing.
This area is 2 times greater in men than in higher animals, and it contains 4 times more neurons in men than in monkeys, for example.
In short, the bundle of nerve cells dedicated to regret is almost 10 times more dense in humans than other creatures!
It is known that this area of the brain maintains close ties with the ventromédian prefrontal cortex, a brain area essential for investors, which addresses the comparison between current earnings and earnings expectations …
Human beings brain, ie the victims of destruction of this area of the brain, become unable to work plan, evaluate, and deal with fear, they never sweat, no more than they have to change in pace and intensity of heart … brrr, to get cold in the back of these zombie finance!
For most market participants, regret is an amplifier of desire. This desire raises the risk-taking.
And increased risk taking, in turn, makes you fall in the class or you were sitting comfortably on tree gains.
Almost all the investors, under the yoke of the biological machine to regret that we abritons eventually believe in the impossible to win … otherwise exchange with the help of Dame Fortune!
This generates misunderstanding, loss of landmarks, and a greater need for search of meaning.
How this impulse can be satisfied?
Paul Léautaud That gives us the surprising key to this riddle: “Most of the links are made of left out and who meet all wrong regret” …
You come to understand the fundamental reason for the rush to the forums Scholars: here you will find the club of “regretteurs-anonymous” means all those who share their miseries, which have set the flame could be blown by financial gales.