Different Minds: why we need human capabilities and machine intelligence*

“There have been great societies that did not use the wheel, but there have been no societies that did not tell stories.” —Ursula K. LeGuin To listen to some scholars of decision-making, it is a great wonder that humans have … Continue reading Different Minds: why we need human capabilities and machine intelligence*

‘The heart has its reasons’: emotions and cognition in the world of finance

Let’s call him James, a trader in a City investment bank; young, smartly dressed, confident, and a little impatient. He sat across from me in the interview:

It’s really important to stay cool. For myself, I can say that I really don’t have much emotion while I trade”.

Half an hour later, as he relaxed a little, the façade had started to crack:

Actually the pressure can be horrendous, a trade goes badly wrong, you are staring into black hole, frozen, knowing you should get out but just hoping the market will turn . . I rushed off the desk and threw up in the toilet – I was terrified”.

Continue reading “‘The heart has its reasons’: emotions and cognition in the world of finance”

Investment, Emotions and the Temple at Delphi*

Can understanding the psychology of investment behaviour help you outperform the market? Probably not, but it can certainly help reduce the probability that you will under-perform the market. This matters, because the majority of private investors under-perform. One compelling piece … Continue reading Investment, Emotions and the Temple at Delphi*