159: Greg Newman – Bringing Stoicism to Trading—and Market Making in Oil Derivatives
Chat With Traders
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Exactly. You're Thinking Like the Herd
If there's 10 people trading and nine out of the 10 are doing the same thing, that would be part of the herd. Once you become part of the majority and trade in the same way or the same direction even, you can quite quickly become in very dangerous position. The market also tends to look more irrational when the herd is involved in one particular direction. So as I say, that herd idea is just, it's just very dangerous. It's the tulip mania type thing that and we're seeing a Bitcoin as well, as I was saying.
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