In this podcast, it is our goal to help you recognise the biases that can subtly – and sometimes not so subtly – pull or push your thinking into making decisions about your finances that aren’t entirely rational. When you’re able to recognise these pushes and pulls, you’ll be able to make smarter choices about your money, and hopefully end up saving and earning more.
In this podcast, it is our goal to help you recognise the biases that can subtly – and sometimes not so subtly – pull or push your thinking into making decisions about your finances that aren’t entirely rational. When you’re able to recognise these pushes and pulls, you’ll be able to make smarter choices about your money, and hopefully end up saving and earning more.
Managing your money is just about making the best choice with the information that you have.
Managing your money is just about making the best choice with the information that you have.
I think it’s a very good and almost like a hygiene, a regular investment portfolio hygiene to go back, revisit, engage – what’s inside my investment and ensure that you’re sufficiently diversified.
I think it’s a very good and almost like a hygiene, a regular investment portfolio hygiene to go back, revisit, engage – what’s inside my investment and ensure that you’re sufficiently diversified.
…I think at the heart of this thesis was trying to help people, trying to help people manage their behavioural biases, trying to prevent the layman, the individual investor from falling prey to these vicious behavioural biases.
…I think at the heart of this thesis was trying to help people, trying to help people manage their behavioural biases, trying to prevent the layman, the individual investor from falling prey to these vicious behavioural biases.
When you place the trade, your conviction is based on your technical analysis and the research that you did. When you’re in the trade that conviction becomes something else … your emotions take over.
When you place the trade, your conviction is based on your technical analysis and the research that you did. When you’re in the trade that conviction becomes something else … your emotions take over.
Availability bias means putting too much weight on data sources that are readily available, especially if the source of the data is memory.
Availability bias means putting too much weight on data sources that are readily available, especially if the source of the data is memory.
Whatever communication is coming at you, just engage with it fully, listen wholeheartedly and read those Ts and Cs.
Whatever communication is coming at you, just engage with it fully, listen wholeheartedly and read those Ts and Cs.
If you’re selling your winners and holding onto your losers, that’s going to give you an upward bias in what your performance is.
If you’re selling your winners and holding onto your losers, that’s going to give you an upward bias in what your performance is.
It’s important to keep your emotions in check and to manage your emotional capital, because that is a vital component of trading, to be emotionally stable.
It’s important to keep your emotions in check and to manage your emotional capital, because that is a vital component of trading, to be emotionally stable.
Probably the biggest behavioural cost that most people make is not what they do when they invest, is that they leave too much of their savings sitting doing nothing year after year after year after year.
Probably the biggest behavioural cost that most people make is not what they do when they invest, is that they leave too much of their savings sitting doing nothing year after year after year after year.
The anchor represents probably our risk type, our disposition, our personality around risk preferences and how we might manage and perceive risk.
The anchor represents probably our risk type, our disposition, our personality around risk preferences and how we might manage and perceive risk.
Financial trouble is like gaining weight. It doesn’t happen overnight. It’s the slow additional like, let’s say, less favourable decisions. It’s that eating that additional financial cookie.
Financial trouble is like gaining weight. It doesn’t happen overnight. It’s the slow additional like, let’s say, less favourable decisions. It’s that eating that additional financial cookie.
Anchors – it’s such a good word, isn’t it? Because it ties us down to the ground in some way.
Anchors – it’s such a good word, isn’t it? Because it ties us down to the ground in some way.
Anyone could essentially help you to reframe a conversation because it’s ultimately about decisions. Am I going to do something? Or am I going to to do nothing? Which is also an active decision.
Anyone could essentially help you to reframe a conversation because it’s ultimately about decisions. Am I going to do something? Or am I going to to do nothing? Which is also an active decision.
I think there’s a lot of danger in only valuing the opinions of people who have a similar mindset or maybe even a similar background to you.
I think there’s a lot of danger in only valuing the opinions of people who have a similar mindset or maybe even a similar background to you.
Because your memory is by its nature going to throw away bad outcomes and remember the good outcomes. And so you can’t really rely and trust your memory to give you a good indication of how well you’ve done.
Your brain accounts for 2 to 3% of your body weight, but it accounts for about 25% of your metabolic expenditure in a given day.
Your brain accounts for 2 to 3% of your body weight, but it accounts for about 25% of your metabolic expenditure in a given day.
I think it’s important to find a balance between living life now and providing for the later self.
I think it’s important to find a balance between living life now and providing for the later self.
It [debt counselling] gives them a bit of breathing room at the end of the day to just sit and go, okay, the debt is on this side, my expenses are on that side, I can manage.
It [debt counselling] gives them a bit of breathing room at the end of the day to just sit and go, okay, the debt is on this side, my expenses are on that side, I can manage.
There’s definitely a mismatch in people understanding what to do financially in their planning in their retirement funds to beat inflation and the importance of actually trying to beat inflation.
There’s definitely a mismatch in people understanding what to do financially in their planning in their retirement funds to beat inflation and the importance of actually trying to beat inflation.
Behavioural Finance plays such a large role in all of our financial decisions. If it is investing, if it is trading, you know, even choosing your favourite ETF.
Behavioural Finance plays such a large role in all of our financial decisions. If it is investing, if it is trading, you know, even choosing your favourite ETF.
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“Essentially, all models are wrong, but some are useful.” – George E.P. Box
