Psychology in Trading

In this section of the site I am going to discuss, in a light but at the same time complete and exhaustive way (without making it boring), a topic that, in my opinion, is underestimated by most investors…

Each of you knows that in the financial markets there is never a guarantee that an event will occur, for instance that Apple or crude oil will reach a certain price. But with analysis you can tilt the…

Turbulence in the market is often not linked to any perceivable event, but rather to investor psychology. A fair share of portfolio losses can be traced back to investors’ choices and the reasons…

In everyday life, we constantly make decisions. In some cases, these decisions are automatic, whilst in others, making a decision can take longer and be a more challenging and complex process…

In 1978, the American economist Herbert Simon won the Nobel Memorial Prize in Economic Sciences for his research on decision-making in economic organisations. He showed that human…

Historically, equities have offered a much higher annual return than bonds. In the 90 years studied by Mehra and Prescott (1889–1978), the average real return on US equities was about 7% a year, against…