Is greed good? No, it’s seriously bad for your wealth

Greed, love of money is one of seven deadly sins. People are convinced that greed is evil everywhere in the world's culture and should be avoided.

But there are also intellectual traditions that they believe are good for the economy. For Scottish Enlightenment Thinker David Hume this is an "industrial stimulus" - this will help promote the "invisible hand" of the market discovered by his ally Adam Smith.

Recently, frankly, Michael Douglas's role, Gordon Gage declared "Good greed" in the movie "Wall Street".

Objections of priests and founders of free market capitalism are sufficiently evident. God and Mammon often collide. But now, by using behavioral financial tools, applying behavioral psychology to financing allows you to choose between two options. New international research conducted under the support of State Street Applied Research Center shows that greed is not a good thing after all. In fact, greed may cause serious damage to our wealth.

Psychologists now have a clear definition of love money. This is not to satisfy the tooling needs of all the other goals we have but to love or need money for our own interests.

Using Money Ethic Sc ​​ale developed by Thomas Li-Ping Tang in 1992, State Street developed investor Love Money Scale (ILOMS). Researchers asked respondents from 20 countries a series of questions to find out how much money is important for self-esteem. They also tested their reaction in various financial situations. For example, they ask whether money is a symbol of success, whether they speak a lot or whether they want to be wealthy.

The result is clear. The more emotional attachments a person has in money, the more likely he will make a mistake with money. Over the years, people have diagnosed a series of behavioral bias that causes investors to fall into predictable errors. Greed strengthens all these prejudices

There is a high possibility that greedy people buy at the top and sell at the bottom - this is a major sin for investors and worse than others. Their time frame is also shorter, and they tend to be excessively active on guess. Frequent transactions can guarantee you pay more transaction costs, but rarely generate additional returns.

Greed is not good. This is the crime of all the great religions of the world. Greed is an excessive form of a good idea: living a good life; greed is a charm with accumulation of more wealth, people lose moral balance. Greed leads to the spread of many bad ideas presented here. It also leads to very unequal distribution of income and wealth. The increase in demand is the reason for creating more employment. For lower taxes, the company will not invest more, or hire more. Companies will invest more and hire themselves so that demand increases and more profits are made. Since entrepreneurs prefer to make a lot of money, even after paying tax they can earn higher profits. Since the tax rate is always less than 100% (in fact less than 40%), the increase in pre-tax earnings will always result in an increase in after-tax profit.

Greed is good. Without want, you will not be able to make your profit run. Without want, you will not be able to accept that transaction. But at the same time, greed may be very bad. Satisfactory, failed transactions may destroy your capital. Balancing the appropriate risk compensation and leverage, psychology, and appropriate retirement plan with your greed to minimize losses and maximize return will lead to better cash management . There are countless trading strategies there. Please take a quick look at the Forex Factory forum and get 2,675 free strategies. It's just from the website. Google 's "Forex Strategy" search will be more and more. Many authors of these trading strategies claim 70-80% success rate depending on who uses it

We will create failsafe for bad behavior. Suppose your market is more likely to have desire and power. This is not a token market, but it is the use of global wealth demand and loopholes. Do not optimize for greediness, plan things if things are rampant. Attacks, fraud, network ransom, network attacks, and other actions were seen on the Internet. There are several tools that can help prevent these on the Internet, but it is not a distributed system. I am optimistic about the power of block chain technology, but I think that we consider the drawbacks of building a better anti-fragile network. As a long-term investor, I believe that the best ICOs will build more consistency between early token holders (investors) and field network owners (donors) through a flexible gradual incentive structure. The block chain is in the early stages of the loop and I am happy to continue learning real-time projects.