We're interested in recruiting a motivated trader to manage a risky portfolio. Practically speaking, this means the risks one will face is something that only few can truly handle. Question:Are people who take above average risks in recreational situations (extreme skiing, rock climbing, etc.), also take more risks in financial, sexual or other domains?---------------------------This is not a job offer

QuoteOriginally posted by: AristonQuestion:Are people who take above average risks in recreational situations (extreme skiing, rock climbing, etc.), also take more risks in financial, sexual or other domains?I am a subscriber to the idea of risk appetite being different for different events/activities. Simple example, drivers that drive like they want to get killed might not consider a motorcycle because they think it is dangerous. So to answer, I do not think that people who take above average risks in recreational situations take more risks in other domains in general. Most likely their risk tolerance level builds when they get more comfortable with their recreational hobbies.

QuoteOriginally posted by: AristonWe're interested in recruiting a motivated trader to manage a risky portfolio. Practically speaking, this means the risks one will face is something that only few can truly handle. Question:Are people who take above average risks in recreational situations (extreme skiing, rock climbing, etc.), also take more risks in financial, sexual or other domains?I would imagine so. Isn't it the case that people who have been exposed to high levels of dopamine when younger need larger doses of it later? They have become desensitised, so events that would thrill most people are insufficient to exhilerate people who are thrill seekers.The thing is, though, that I'd think that you'd want a relatively risk averse person to handle your very large risk positions. A thrill seeker will get too much pleasure from the volatilities in the portfolio. One difference between trading and gambling is that gamblers pay to get into a risky position. Traders need to be paid to do so.

QuoteOriginally posted by: AristonPractically speaking, this means the risks one will face is something that only few can truly handle.I can picture myself executing the strategy, so far as I know, of any well-capitalized portfolio around the world. I really don't see where the risk is. Other than getting a degree in law or nursing, this seems like one of the least risky activities.Generally, the portfolio manager is less risk-averse than the investor. So his compensation has to be a leveraged on the returns for him to even feel any ups and downs at all.An event is like a packet of new information. If you can't imagine how big those packets might be, then you are not qualifed to manage risk. Your real danger is dumb people, or people who cannot extrapolate a finite set of past experiences, to a yet-unexperienced event.MP