Every bettor is acutely aware of Risk -- the level of which usually being mathematically represented by the odds of the selection which the bettor backs at. A 100/1 outsider is a more risky proposal that the Evens favourite.
An every trader is -- or should be -- aware of Risk Management in his trading. Effective Risk Management limits the trader's exposure to adverse market movements, and aids him in identifying and prioritizing potential profitable trades.
But how do you see your own risk-performance? Could you put a value-figure on your risk-management ability? Are you even aware of it?
Dr Dylan Evans (PhD, London School of Economics) is Lecturer in Behavioural Science at University College, Cork, and is at the forefront of research into risk and risk-taking patterns.
Dr Evans believes that successful gamblers – "those rare people who manage consistently to profit by making informed bets, judge risk in a different way to most other men and women" – display a group of traits that aren’t found in other people."
"Unlike leisure gamblers and problem gamblers, the expert gamblers do not get a great kick out of winning, whereas less successful gamblers get a real buzz. However, the expert gamblers find losing much more painful. An expert gambler is likely to enjoy numbers, be a good decision-maker who is adept at judging risk and unlikely to be anyway arrogant. Last, but not least, the expert gamblers know their weaknesses, unlike less successful gamblers who tend to be overconfident".
As part of his research, Dr Evans has developed a test for evaluating risk intelligence. Do take the test and discover your own Risk Intelligence. It may lead you to seeing your trading methodology in an entirely different light. Go to www.projectionpoint.com and take the test.
Dr Evans introduces his Risk Intelligence test.
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Dylan Evans is also the coolest Doctorate of Philosophy on the planet. ( Why couldn't I have had a teacher like him back in my schooldays).
Here is him getting a real kick out of his latest toy -- a handheld synthesizer -- and putting down some wicked sounds.
"Well I was 57 which is "average" and possibly what I expected. However, the questions were quite heavily slanted to a USA audience. If they had been largely "UK" questions, I would have expected to have been much more positive in my answers. Would not that have given me a different rating? May not have been a better Risk rating though because I could have been too rash in answering because I was more confident of knowing the right answer.
ReplyDeleteGood fun to have a go though."
RayH