Dr Daniel Crosby makes behavioural finance fascinating and explains why our primitive brains are hardwired 180 degrees against investing in the stock market.
The price of West Texas Intermediate Crude oil went into negative dollars for the first time in history. Here is a quick look at the price drop and the differences between Brent and West Texas Crude.
Dr Daniel Crosby
Why is trading so hard to master? Daniel explains it.
It is true, God or nature could not have created a worse investor than you or I.
Our brains are wired 180 degrees backwards to invest in the stock market.
Humans hate NOTHING more than uncertainty.
In over 2500 years our primitive brains have not had a substantial upgrade and there is an enormous mismatch for what we were made for in cave-man times and what is required in modern financial markets
For instance, why are we statistically wired to be 2.5 times more upset about a loss than a comparably sized win? Daniel explains it at 9.45 mins
And then he talks about the 3 types of risk at 11.10 mins and two primary types of behavioural errors and biases; ego and its role as a protective function in humans at 15.30 mins and emotionalism as the first-ever risk tolerance questionnaire at 18.10 mins.
You will just love this interview.
To find out more about him go to:
To listen to his podcast go to Standard Deviation.