Tag: investing psychology
Mean Reversion: The Market’s Way Of Rationalizing Irrational Moves
After the apple hit Sir Isaac Newton’s noggin, he, and subsequently the rest of the world, understood gravity – what goes up must come...
Uncovering Value: Price Discovery And Irrational Investing Behavior
This post was written with Chris Kerlow and Craig Basinger.
The essence of money management can be encapsulated in searching for investments that are trading...
From Herd Behavior to GroupThink to Market Bubbles
This post was written with Craig Basinger.
The human species learned long, long ago that sticking together is a good thing. During our evolution, larger...
Investors: The Downside Of ‘Loss Aversion’
I co-wrote this post with Craig Basinger of Richardson GMP.
You own 1,000 shares each of company A and B, each originally purchased for $100. Since...
Successful Investors Have One Thing In Common: A Process
One of the great things about investing is the many ways that people approach it. Throughout history it’s been shown that hundreds (if not...
Mind Games: 3 Behavioral Traits Investors Should Be Mindful Of
In “Bubbles and Elevators”, we discussed how human beings do seemingly ridiculous things to fulfill their instinctive need to mimic what others are doing,...
Conviction Is A Good Thing… Just Tune Out The “Big Calls”
A large segment of Wall Street – analysts, news pundits, etc. – is paid to make calls for individual stocks and the broader stock...
Market Update: The Growing Tension On The Tape
It's always interesting to see how investors and traders handle market tension. Typically market tension evolves after big runs higher and lower, or alternatively when...
The Insidious Nature Of Investing Hindsight
Many of my conversations with clients touch upon how they react to missing significant investment opportunities or selling profitable investments too soon.
Most of you...
Top Trading Links: Finding An ‘Edge’ In This Market
At this point in the stock market correction, timeframes appear to be colliding. It’s tough to get a true read on the market, but...
