Looking at the central role emotion and uncertainty play in financial decision-making and behaviour for finance professionals and the wider public
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 of research evidence comes from a careful analysis, carried out by Dalbar research, of the… Continue reading Investment, Emotions and the Temple at Delphi*
Humans have a great capacity for exercising control over their environment and for detecting patterns in the confusing mass of information they face. This capacity can also mislead; not least in financial markets. Have you ever looked at the clouds and seen faces or the shapes of animals. Did you as a child see monsters… Continue reading It’s clouds’ illusions I recall . . . trading and the illusion of control
Emotional Finance 