Posts Tagged → Behaviour

The best way to beat the market is with a powerful investment discipline.

Investment Discipline is a crucial aspect of investing that occurs after an investor has laid out their Investment Philosophy. It involves several factors, such as the investing strategy, Risk Tolerance, asset mix, and a refined investing process. Once the plan is in place, all investors need to exercise Discipline to see their objectives achieved.

Investment Discipline is a crucial aspect of investing that occurs after an investor has laid out their Investment Philosophy. It involves several factors, such as the investing strategy, Risk Tolerance, asset mix, and a refined investing process. Once the plan is in place, all investors need to exercise Discipline to see their objectives achieved. Discipline… Continue reading →

How to make better investing decisions with 2nd-order thinking?

1st and 2nd-order thinking are thought processes that we go through when analysing situations in all aspects of life. 1st Order thinking is not inherently bad, but it is essential to try to think better and apply Second Order thinking when necessary. The Second Order thought process requires energy, problem-solving skills, critical thinking, and looking into the future at the consequences of your decisions.

What is 1st and 2nd-Order Thinking? 1st and 2nd-order thinking are thought processes that we go through when analysing situations in all aspects of life. 1st Order thinking is not inherently bad, but it is essential to try to think better and apply Second Order thinking when necessary. The Second Order thought process requires energy,… Continue reading →

Here are the most popular Investor Biases to avoid.

Investor biases can be categorized into two types, cognitive or emotional. These biases are irrational thoughts and feelings that affect our decision-making, whether subconsciously or consciously. An investor can have one or multiple biases that lead to misjudgments. Recognising our behaviours and biases is essential to becoming a better investor, but we cannot wholly eliminate them. Instead, we can identify them and put measures in place to overcome them

What are behavioural biases? Investor biases can be categorized into two types, cognitive or emotional. These biases are irrational thoughts and feelings that affect our decision-making, whether subconsciously or consciously. An investor can have one or multiple biases that lead to misjudgments. Recognising our behaviours and biases is essential to becoming a better investor, but… Continue reading →

Ignoring the noise is the best advice I can give.

Ignoring the noise can be difficult in the world of investing. However, it’s important to remember that no one else has your exact investment strategy, timeframe, and goals in mind. You are the only one who truly cares about your long-term wealth creation and financial objectives. Don’t give up your independence and decision-making power to outside influence.

Ignoring the noise can be difficult in the world of investing. However, it’s important to remember that no one else has your exact investment strategy, timeframe, and goals in mind. You are the only one who truly cares about your long-term wealth creation and financial objectives. Don’t give up your independence and decision-making power to… Continue reading →

The best investing edge is to know your behaviour.

It’s important to know your behaviour and emotional responses towards money in order to invest successfully. Improving your investment philosophy and investment processes can help eliminate irrational thinking.

It’s important to know your behaviour and emotional responses towards money in order to invest successfully. Improving your investment philosophy and investment processes can help eliminate irrational thinking. However, there are a few other areas that can help you recognise your behaviour and how to overcome it. The first step is to be aware of… Continue reading →

The best Psychology of Investing guide for new investors.

The Psychology of Investing is the study of how emotional and mental influences affect an investor’s decision-making process. This includes what the investor believes, how they act and interact with the markets, and how they respond to different market cycles.

The Psychology of Investing explained. The Psychology of Investing is the study of how emotional and mental influences affect an investor’s decision-making process. This includes what the investor believes, how they act and interact with the markets, and how they respond to different market cycles. Many investors do not consider the impact that psychology has… Continue reading →