Behavioral Finance

07 Nov
10 Rules For Catching Falling Knives & Increasing Returns
The S&P 500 is constantly ascending to new highs, but there are plenty of stocks setting new lows.

Today, we’ll discuss how to approach such a situation from a behavioral and technical perspective.

The 10 rules that follow will help you increase your batting average.

Introduction

Despite the fact that the S&P 500 has only been going up lately, there are many companies that have had a terrible time, especially if you look at retail stocks. But this opens the door for a very interesting investing strategy of trying to buy stocks at their bottom after a price drop or more simps, to “catch a falling knife.”

In today’s article, we’ll discuss this strategy in depth, discuss a few current stock examples, and come to a conclusion about whether we should even apply such a strategy. More →
By Sven Carlin Behavioral Finance Investing Strategy Investiv Daily Stocks
01 Nov
Are You Saving Enough? Probably Not, Here’s How You Can
Today, I’ll discuss Thaler’s Save More Tomorrow concept and the behavioral issues that impact how much we save and invest.

Secondly, I’ll dig into how much someone is supposed to save and invest to reach a future target.

I’ll conclude with this question: are you saving/investing enough?

Introduction

Yesterday, we discussed Nobel prize winner professor Richard Thaler’s findings in the field of behavioral finance.

Thaler’s findings can really help us to lower our investment risks and increasing our returns. However, investing isn’t only about picking the right stock or properly timing a trade, it’s also about carefully allocating our capital in investing in the first place, thus saving for investing. More →
By Sven Carlin Behavioral Finance Investing Investing Strategy Investiv Daily Jack Bogle Richard Thaler
31 Oct
Asking Yourself These 7 Questions Will Make You A Better Investor
Today, we’ll look into Richard Thaler’s work to find out how to take advantage of behavioral finance.

Taking advantage goes hand-in-hand with not making behavioral mistakes.

A few examples and 7 questions will give you plenty of food for thought.

Introduction

The recent Nobel prize in economics was awarded to Richard Thaler from the Chicago Booth School of Business for exploring the biases and cognitive shortcuts that impact how people absorb and process information. More →
By Sven Carlin Behavioral Finance Investing Strategy Investiv Daily Richard Thaler
11 Oct
How This Little-Known Theory Could Bring You Outsized Returns
Stock prices haven’t been following fundamentals for 5 years now. The theory of reflexivity is the only one that can explain what’s been going on.

The main message is that as long as the trend is strong, don’t fight it, but reinforce it.

If you want to know when the current bubble will burst, focus on the twilight zone.

Introduction

One of the best traders and investors over the last 50 years has been George Soros. Whether you like him or not, his track record is something to respect and learn from whenever possible.

In today’s article, I’ll describe his reflexivity theory in a, hopefully, much simpler way than Soros has described it in his book, The Alchemy of Finance. More →
By Sven Carlin Behavioral Finance George Soros Investing Strategy Investiv Daily Reflexivity
21 Sep
Here’s Why You Need To Think About The Current Market Risks
Evolution hasn’t created us to look at risks in investing, which is something that can be very costly.

I’ll discuss in a simple, but straightforward way what the current market risks are to be aware of.

If you’re careful, you can earn up to $500k in 20 years on a $100k portfolio.

Introduction

Investing is a very delicate thing and few understand that we aren’t wired for success in it. Part of our brain, the amygdala, through millions of years of evolution, has taught us to fight when we might be wrong, to prove our dominance and our convictions in order to prevail and spread our genetics. More →
By Sven Carlin Behavioral Finance Investing Strategy Investiv Daily Recession Risk US Economy
06 Sep
How Anchoring Can Destroy Your Returns
You might not be aware of it, but you are under the influence of many things. After all, you are human.

Anchoring is really terrible as it makes you take profits too soon and keep your losers. We’ll discuss the post earnings drift effect, loss aversion, and the breakeven issue.

Additionally, we’ll discuss 5 ways to eliminate anchoring from your decision making process.

Introduction

We’re under the influence of the behavioral finance anchoring concept when we take a past reference point for determining whether a stock is a buy or not. More →
By Sven Carlin Anchoring Behavioral Finance Investing Strategy Investiv Daily