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Tuesday, May 31, 2011

Cost of Laziness

I wanted to post this yesterday, but I was too lazy.

How does laziness affect your trading?

First, you get ideas from the stream without any validations.
You make the trade with 3% profit, but other person made 30%.
Sure, you are happy making 3% profit, but you missed out - opportunity cost.

Worse, you make the trade the stock drops 10+% and you now have a loss.
The other person already sold with 1% loss.
Now, you are left holding the bag.

You were too lazy to do any research, ask any question, do any validation.

I never understood how someone can have 1% loss and a 10%+ profit in this volatile market, but that's a topic for another day.

Another example of laziness which I encountered yesterday has to do with keeping financial data on the cloud. Here is a brief description of the product - a personal finance security service that alerts you to unwanted and unauthorized transactions on your credit card and debit card bills.

First, if your credit card does not have any fraud detection algorithm, then it's time to get a new one.

Second, if you are seriously that stupid and/or that lazy where you don't know about unwanted or unauthorized charges to your account, then you deserve to get robbed.

Too lazy to exercise? How much is that costing you?

Find out how much it's costing you to be lazy.