What James Bond Can Teach You about the Stock Market
What is the connection of James Bond to trading? A mistake countless investors make is to become fixated with their positions and find ways to uphold them, in the face of information pointing to the contrary. This is because of an innate attachment one naturally develops for a position that has been the source of profit in the past and because most people are unable to acknowledge they are wrong. To sell purchased stocks, particularly those with an insignificant or zero mark-up, is tantamount to admitting a mistake. Moreover, our society frowns on “flip-flopping“. Politicians are ridiculed for shifting positions on issues and we tend to elect a leader who is a “decider,” one way or another pleased that no amount of proof would persuade him to amend his stand. If you adopt this behaviour in stock trading, you will get yourself slaughtered!
The James Bond character created by Ian Fleming should make an interesting study vis-a-vis the characteristics a good trader should possess. Bond looks for clues, takes on considered risks, is not fearful of getting shot at from time to time, and though he directs with his instincts he examines his own choices along the way. Bond has no difficulty committing to a position but he’s always prepared in case the supposed friend he is with suddenly tries to kill him. Bond develops short-lived alliances with his enemies because his sights are directed to the big picture – resolution of the case. In one of the James Bond movies, Bond fought a woman, made love to her, and then arrested her without shame or embarrassment for his change of heart. This is the ideal character to take on when trading. There is no room for loyalty in stock market investing.
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