Bloomberg, in a follow up to the earlier story I mentioned, also reports that Zagging has its cost:

Goldman Sachs Group Inc., the biggest U.S. securities firm by market value, lost money on more trading days during the first quarter than rivals Morgan Stanley or Lehman Brothers Holdings Inc., according to regulatory filings.

In the three months through Feb. 29, Goldman lost money on 17 days, compared with eight days at Morgan Stanley and seven at Lehman Brothers, the filings show.

Every great trader will tell you that the best traders know how to take a loss. And zagging when others are zigging means you’re gonna see increased volatility and some losses:

The filings also show that Goldman lost $100 million or more on five trading days during the quarter. Morgan Stanley lost more than $100 million on one day, while Lehman reported that it lost more than $60 million on three separate occasions.

But being a contrarian also has its benefits:

Goldman’s trading department also had more big wins, raking in $100 million or more on 28 occasions [emphasis mine], compared with 20 days at Morgan Stanley. Lehman reported it made more than $90 million on 13 days.

Source:
Goldman Had More Trading-Loss Days Than Morgan Stanley, Lehman
Christine Harper
Bloomberg.com

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