Instead, he did it the same way a fast - growth software or biotech company develops products — with a small team, angel funding, freewheeling management, a willingness to
take big risks, and a belief that serious profit lay on the far side.
Bill Dudley, who as president of the Federal Reserve Bank of New York oversees
big banks like JPMorgan and Citigroup, says bankers might police
risk -
taking by employees more aggressively if their compensation came in the form of bonds
instead of stock.
«We are about to undertake a grand experiment, to test whether or not we can set aside politics, to test whether we can shed our decades of old pessimism, an affinity for status quo, and
instead embrace the innovative,
big thinking,
risk taking, progressive approach that defines the great cities of this world,» Walsh said.
In my small unique book «The small stock trader» I also had more detailed overview of tens of stock trading mistakes (http://thesmallstocktrader.wordpress.com/2012/06/25/stock-day-trading-mistakessinceserrors-that-cause-90-of-stock-traders-lose-money/): • EGO (thinking you are a walking think tank, not accepting and learning from you mistakes, etc.) • Lack of passion and entering into stock trading with unrealistic expectations about the learning time and performance, without realizing that it often
takes 4 - 5 years to learn how it works and that even +50 % annual performance in the long run is very good • Poor self - esteem / self - knowledge • Lack of focus • Not working ward enough and treating your stock trading as a hobby
instead of a small business • Lack of knowledge and experience • Trying to imitate others
instead of developing your unique stock trading philosophy that suits best to your personality • Listening to others
instead of doing your own research • Lack of recordkeeping • Overanalyzing and overcomplicating things (Zen - like simplicity is the key) • Lack of flexibility to adapt to the always / quick - changing stock market • Lack of patience to learn stock trading properly, wait to enter into the positions and let the winners run (inpatience results in overtrading, which in turn results in high transaction costs) • Lack of stock trading plan that defines your goals, entry / exit points, etc. • Lack of
risk management rules on stop losses, position sizing, leverage, diversification, etc. • Lack of discipline to stick to your stock trading plan and
risk management rules • Getting emotional (fear, greed, hope, revenge, regret, bragging, getting overconfident after
big wins, sheep - like crowd - following behavior, etc.) • Not knowing and understanding the competition • Not knowing the catalysts that trigger stock price changes • Averaging down (adding to losers
instead of adding to winners) • Putting your stock trading capital in 1 - 2 or more than 6 - 7 stocks
instead of diversifying into about 5 stocks • Bottom / top fishing • Not understanding the specifics of short selling • Missing this market / industry / stock connection, the
big picture, and only focusing on the specific stocks • Trying to predict the market / economy
instead of just listening to it and going against the trend
instead of following it