by Stoffel | Apr 3, 2025 | Biases, Decision Making, Investing
Imagine having tomorrow’s news today. Would you use it to strike it rich in the markets? That’s the premise behind a fascinating experiment conducted by Victor Haghani, James White, and Jerry Bell, described in their article “When a Crystal Ball Isn’t Enough to Make...
by Stoffel | Mar 27, 2025 | Biases, Decision Making, Investing, Leverage
Why Most Retail Investors Lose Money Most retail investors – everyday individuals trading stocks and other assets – end up losing money or underperforming the market. Various analyses worldwide confirm this trend. For example, regulators in Europe found that 74–89% of...
by Stoffel | Oct 15, 2024 | Biases, Decision Making, Speculation
Many people lost lots of money in the past “investing” too much of their money into perceived lucrative opportunities. Think Gamestop. During the GameStop short squeeze in early 2021, many retail investors rushed to buy GME shares as the stock price soared due to the...
by Stoffel | Sep 22, 2024 | Biases, Decision Making
Bayes’ reasoning is a powerful tool for decision-making under uncertainty. It’s used not just in statistics but also in various fields like medicine, artificial intelligence, economics, and investing. The crux of Bayes’ reasoning is updating your prior beliefs...
by Stoffel | Sep 20, 2024 | Biases, Decision Making
This post on biases is structured into 3 parts: Part 1: Understanding Biases and Their Impact on Decision-Making Part 2: Individual Biases That Lead to Bad Financial Decisions Part 3: How Biases Influence Financial and Investment Decisions Part 1: Understanding...
