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The Psychology of Investing

The Psychology of Investing
 

 

 

The Psychology of Investing

Consideration of the behavioral finance components involved in speculation is an element critical to success. However important an “appropriate internal state” might be in terms of improving one’s odds, it doesn’t supplant the amount of edge that is requisite.

Nevertheless, an integration of both edge, and psychology (along with proper money management), goes a long way towards fostering survivability in the probabilistic realm of financial speculation. Often traders which don’t have real edge, find “psychology” to offer a convenient scapegoat for mediocre results.

Un-manifested edge, however, is often due to responses to trading activity, that insufficiently account for probability distributions of outcome and thus generate invalid conclusions. The successful trader needs both edge and the “right” mental state!

This webinar will take a look at those emotional and behavioral phenomena (such as fear and greed) that essentially are the backdrop and the incentive for all investing. Further, an approach to sensory utilization congruent with optimal maneuvering in the probabilistic realm of investing will be examined and critiqued.

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