Tuesday, January 25, 2011

Ed Seykota: Everybody Gets What They Want Out Of The Market

"Win or lose, everybody gets what they want out of the market. Some people seem to like to lose, so they win by losing money.

I think that if people look deeply enough into their trading patterns, they find that, on balance, including all their goals, they are really getting what they want, even though they may not understand it or want to admit it."

Ed Seykota


  1. This was undoubtedly one of the most fascinating things I read in Market Wizards. I sat and thought about it for days, and still do.

  2. Oh, I guess that explains AIG, WAMU, Wachovia, Countrywide, New Century, CIT, Thornburg, Novastar, Bear Stearns, Lehman, Merrill Lynch, GM, Chrysler, Fannie Mae, Freddie Mac, Blockbuster, California, Illinois, New Jersey and a few million more businesses and individuals losing money and/or going bankrupt.


    Now if they just change their thought patterns, engaged in positive thinking and hold their mouth just right, then everything will be hunky dory. Gosh, I'm so thankful for this valuable information.

  3. I suppose an example is people who play the lotto. The odds of winning are astronomically small (1 out of couple hundred million) yet millions plunk down their dollars. Some spend thousands a year on the game that they virtually have no hope of winning in their lifetime. Subconciously, they probably want to lose money, is what Ed would probably say. Instead of bettering themselves with knowledge so maybe they can go out and create a business that potentially can generate millions of dollars for them.

    The same can be said of traders who continually maximize on leverage to buy stocks, or consumers who maximize on leverage to buy multiple homes. Instinctively, they know it's a bad idea and that likely eventually they will go broke, but they do it anyway.