Behavioral Finance

Investor Skepticism Fuels Bearish Climate For Stocks In 2016

Investor skepticism is something that we hear about often in the stock market. More importantly, we feel it deep in our core. It is usually entwined with disbelief that a current trend can continue given a specific set of concerning factors.  Investor skepticism is also the reason that investing can…

SHORT-TERMism: Algos, ETF’s And Investor Performance

This post came over via Shane Obata and was written by Craig Basinger, Richardson GMP’s Chief Investment Officer. “The stock market is a device for transferring money from the impatient to the patient.” – Warren Buffett The only constant in the investment landscape is change. I would still classify myself…

The Importance Of Mental Flexibility In Trading

Possessing mental flexibility is essential for any trader, but it is especially important for short-term traders who constantly have to reevaluate the merits of their open positions. There is a constant barrage of data that must be interpreted and filtered intraday, and it is the job of a professional trader…

Why You Shouldn’t Let Market Bottoms Consume You

Calling for a market bottom is the new rage. But, truth be told, what feels cool is often a very dangerous thing to do (especially with your money). And that goes for calling market tops as well.  It’s a mentality that can consume you and affect your day to day…

Investors: Beware The Certainty Trap

Data availability is something of a double-edged sword in today’s financial markets. On the one hand, we now have a nearly unlimited supply of research, opinions, back-tests and historical simulations with which to base our investment views upon. On the other hand, the fact that we have more information available…

The Art Of Trading And The Illusion Of Control

I’ve written and said many times before that simplicity is a good thing—if you have a trading methodology that is overly complex, there’s a pretty chance it won’t work. However, many traders feel drawn to complexity—it feels right and good. Why is that? Why would we not prefer the simpler…

Top Trading Links: Some BadAss Investing Research

As market volatility picks up, it’s become increasingly clear to all of us that our mind plays tricks on itself. It’s a major reason why we have stop losses, trading rules and processes. If you are failing to follow your plan, that needs to change now. In this kind of…

Why Great Companies Don’t Always Make Great Stocks

If you guys follow me on Twitter and StockTwits, then you know I’ve been working on what I call my Detrick Daily Scorecard. It is a spreadsheet that tells you anything and everything you need to know about what happened today. I have everything in it from global markets, to…

Making Sense Of Recent Market Sentiment Polls And Data

Even as U.S. stocks are coming under renewed pressure, there is a battle brewing between newsletter writers and mom-and-pop investors. They are on different wavelengths as far as market sentiment goes, feeding the bears and bulls, respectively. First let’s discuss the Investors Intelligence poll. II bulls printed 42.2 this week…