Why do people choose to buy the dream rather than see the truth that’s right in front of them? In the previous instalment, we discussed two of the four key points of Behavioural Finance: Mental Accounting; about position and sizing with regard to the reason for investing [...]
What makes people run into investments with everybody else doing the same, when common sense dictates otherwise? In this chapter, we’re going to understand why Mental Accounting and Herd Instinct are so misunderstood and often misplaced in the business of trading and investing. Let’s recap [...]
This three-part series explores something so important and common in today’s financial markets for which not enough has been written about when compared to the unimportant stuff that flood the internet and bookstores. Behavioural Finance is a very modern concept that studies the effects of human [...]
Those familiar with my writings would have read something similar in various postings through the last decade and a half. In spite of the frequency of these articles and social media postings, I still get a fair number of queries that ask questions to which [...]
“But paper trading is not real." That’s the usual reaction I get when I encourage students and newbies to practice before hitting the markets with real money. Of course it isn't real and that is why it is so important to understand why and how [...]
Sport, business and life are nothing more than endurance tests and we all have to run at least one of those races. It’s not how or where we finish the race that matters nor what we achieved in the process. It is the race [...]
A common query I get is what the life of a “full-time” trader is like. Many are also curious about what kind of life I lead being a trader, a teacher, a mentor, counsellor, consultant and author/writer. DON’T READ THIS ARTICLE if you don’t [...]
It is the most common Investment style amongst amateur market players. However, it is not as safe and or as simple as it has been made out to be. Read on so that you don't become a long-term victim of this most misunderstood style of [...]
Trading and getting no joy? You should read this ... and get real. But be sure to read Part One and Part Two first. In this final instalment of The Obvious Lie, we're going to get a greater understanding of what it means to think, [...]
Trading and getting no joy? You should read this ... and get real. But make sure you read Part One first. QUESTION: Why spend money and take so much effort to learn what is safe when it is not the safe stuff that kills your [...]