Barclays Wealth has a new report out entitled “Risk and Rules: The Role of Control in Financial Decision Making.” This report looks at people and personalities and how they influence financial decision making. It also explores the strategies people use to manage their behavior when making investment decisions.
Something I’ve noticed over the years in working with traders was confirmed in the research conducted by Barclays. Most US based traders want financial satisfaction yet are unwilling to work on discipline issues that prevent that satisfaction. Most don’t want to figure out which trading style is best for their personality. Most don’t want to put in the hours of necessary homework to keep abreast of their place of business, the markets. Most would rather have someone tell them exactly what to do and when.
The US ranks 5th in wanting financial satisfaction yet third to last in a desire for discipline. Discipline is key in being successful in the markets, this I know. Trading is like a diet, it takes discipline to work. Seems too many are more willing to pay for a magic pill to take the weight off while they sleep or watch television. Think about it.
Atti,
I read the Barclay’s report, and with all due respect, I believe you might be misinterpreting the report. The way I interpret the report, the “Desire for Discipline” is equal to the a persons need for increased discipline. 28% of US investors have a greater “Desire for Discipline” actually makes the US population more disciplined than all other regions with scores higher than 25% like the ones listed in the Upper Left Corner. Those countries listed in the lower left cornet actually have greater discipline, and therefore a lower “Desire for Discipline”. Check out page 15 of the report for clarity.
How dare you read the report! Seriously though, nice catch. I guess I was a bit too focused on the chart indicating what I’ve experienced.
It is also interesting to note that women have a greater desire for self-control than men yet men are the ones that need discipline more due to their overconfidence. I’ve seen this in my work as well and posted about it here http://www.attitrade.com/?s=overconfidenceThanks for reading and contributing.
After reviewing everything again, I think we both could be right. Although US population feels less of a “Desire for Discipline”, it doesn’t necessarily mean those who don’t have a desire for more discipline already have it. The people upper left corner box should be applauded for realizing they need for discipline. Your point that those you have worked with often lack this understanding or desire is well taken and made. Ironically, I am in the middle of my own introspection to improve performance, so the report was right on time. Thank you for posting. Very helpful.