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Pastimes : The Darwin Awards for Investing

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To: EL KABONG!!! who wrote (11)11/3/1999 2:02:00 PM
From: The Other Analyst  Read Replies (1) of 52
 
Now, the next question. If these investors really could not have afforded the loss, then presumably the markets have been deprived of the information conveyed by their trading actions. If so, are the markets better off for it? Or (and this is more likely the case in my opinion) did the loss cause them to become more skeptical the next time?

Come to think of it, maybe Darwin is not the right name for this thread. Perhaps we should call it the BF Skinner awards for investing. Rats and pigeons tend to reduce the frequency of behavior that has been followed by punishment. They learn not to press the lever that causes an electric shock. This does not occur through a Darwinian selection process. In other words, it is not the offspring of the rats and pigeons who display the new behavior. It is the subjects themselves who have LEARNED, not inherited, the behavior.
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