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.
