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Originally Posted by wozdan
also damn quickly I would say  |
Indeed. I believe the context of that remark was made in reference to the downfall of Long Term Capital Management (LTCM) after losing 500 million a day for eight days straight in the bond market with leverage of 25:1
I actually studied the LTCM downfall in a psychology class in my batchelors study. The case was shown as an example of the effects of cognitive dissonance. This is a theorem used by psychologists to define what happens when our personal beliefs of truth do not allign with reality.
I find it interesting that the greatest investment dream team of all time lost their a** using only a fourth of the leverage advertised by most forex brokers today.
Hmmmm,....perhaps a moment of reflection.
Regards
PSY