Sex | Finance & Money
How Sex & Trading Get Each Other Off
Spend a few moments reading posts on any retail investor chat board and you will likely see a lot of colorful terms such as, “double bottoms,” “buying climax,” “violating the lows,” “firmed up,” and “ascending peaks.” This isn’t an accident, as many non-professional investors are men who love to use overt sexual references to describe their mounting excitement as their stocks penetrate base formations and rise higher.
Once they have taken profits, there is a brief but intense moment of fulfillment and release that follows — they refer to this as the “afterglow.”
Now mind you, this is not the norm for conservative investors who analyse the actual financials and business operations of a company (aka fundamentals) before making a long term investment. Rather, the above is the culture and language of so-called “technical traders” who are looking to make a quick buck and use charts and complicated statistical tools to try and predict the next change in the price of a stock (or other asset).
Not surprisingly, the technical trader labels long-term investing based upon fundamentals as “marrying a stock” — of course to the typical technical trader personality, marriage is seen as a negative.
What is technical trading?
Simply put, the technical trader uses charts to have quick and casual affairs that leads to instant gratification, whereas the investor is focused on value over a period of many years. For this reason, investors typically are not found on chat boards exchanging ideas with each other, because the work is done before the purchase is made — after that we must wait years to see any type of meaningful return, so there really isn’t much to talk about.