Dr Daniel Crosby and Louise Bedford on our primitive brains versus investing.
How we react hunting on the savannah with the sabre tooth tiger over our shoulder is not always compatible with how to make money in the market.
Our instinctive reactions can prevent us from cutting a loss short and letting your profits run. But once you hear it broken down you can reprogram yourself and make profits.
Dr Daniel Crosby
Dr Daniel Crosby continues to break down behavioural finance into practical applications.
We look at two more behavioural errors and biases for humans:
- The need for ATTENTION and doing the small things correctly (7.30 mins)
- CONSERVATISM and the desire to protect a known status quo. (9.55 mins)
We then talk about the topic on everyone’s lips, Corona Virus and the impact it is having on share traders. Not only are the markets affected so is our mental health which impacts our trading decision making.
At 13 mins we talk about why humility makes you into more profitable traders and Daniels Ted X Talk You are Not That Great.
He breaks down the flavours of ego – can you relate to any of these?
- We think we are better than average.
- We think we can know the future with greater certainty.
- We think we are luckier than average.
His key message for traders to take home during this period is that your trading will be as good or bad as your wellness. (24.40 mins)
Or listen to his podcast Standard Deviation