By now, everyone has heard of the two former Bear Stearns managers, who went from making 8 figure incomes to being arrested.
We also know that the volatility that characterized the hedge fund industry last year was unprecedented.
So, were they performing the permissible spin, or did they go beyond it?
How did it happen and how can it be prevented?
Their reactions to the volatility ranged wildly from paralysis to overreaction. They had isolated themselves. Stress, anxiety, and loss of confidence made them panic. Their emotions were fried. At this point, the task ahead was not easy.
Their embellishments became misleading. They had not developed the skills of Mental Edge trading.
Investors became furious, billions of dollars were lost, and the rest is history.
What could they have done? They could:
- Talk to an objective person/coach about their thought and strategies.
- Develop a “Mental Edge” to avoid complications.
- Have the courage to be upfront with the investors and their bosses.
- Have the integrity to preserve the investor’s interest in mind.
- Be the leader that people were counting on, and accept the consequences.
- Come up with contingency plans to preserve some of the capital.
The above actions could have retained the investors, prevented the loss of some of the capital, and preserved their reputations.
When people are under pressure, they handle situations in manners they had never intended. By developing a “Mental Edge” and creating the skills that are needed, they learn to get out of their own way and objectively deal with adversities.
In order to enhance your "Mental Edge" or if you have questions, please call (212) 585-2804 or send us an email.
I asked Nazy for "help" – what she gave me was over 1000%: holding my hand resulted in my gaining millions of dollars. She's unbelievable! She has the uncanny ability to hear what you really need as opposed to merely responding to what you ask for. You have to try it for yourself to know what I'm talking about.
M. H., Managing Partner
Wall Street Firm
From one insider to another… No one knows it better, or does it better, than Nazy Massoud.
A.M., Managing Director