Deal or no deal!

Fellini_1

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!