The chief executive of a multi-billion dollar global macro fund said that it piques his interest when he hears about a trader who has just blown up. He said: “We should interview that guy. The main thing that makes a good trader is a very high risk tolerance. There are only a limited number of people who have the mental fortitude to run a lot of risk. Most people we hire only run about a third of the maximum risk we allocate them.”

Nine times out of 10, the manager has blown up (industry parlance for losing a lot of money) because they made a mistake, said the chief executive, but that 10th time they discover a great trader.