Have you ever found a winning stock early, but: Sold it too early? Sold it when its share price was falling? Sold it to hoping you could buy it back again cheaper but couldn’t? Have you thought you found a winning stock, but it turned out to be a loser,…
If all knowable information is reflected in share prices at all times, then one will not make money by knowing what everyone else knows. Knowing what others don’t is the edge. Knowledge is power, even when it comes to investing. The knowledge that comes from deep understanding of that which…
Part 4 delved a little into how charts show group behaviour. The feedback has been great and Fahd and I plan on doing a whole series of videos and articles on charts. To appreciate this instalment in the series, I recommend a refresher of Part 3 – Holding with patience,…
A question that is asked often – is it a signal for investors to act upon, if company management buys or sells their shares? It’s a phenomenon that we see across markets, investors reacting to Director trading activity. Many investors often ‘follow the money’, getting excited and buying when Directors…
From our last 3 instalments on Investing Psychology, in this edition, we go deeper into some patterns that occur as a result of group (buyer and seller) dynamics and the collective psychology of investors on the market. People often look at stock price charts and take it in as what…
There is a comprehensive article on Tradeciety that lists statistics from numerous studies and surveys about short term trading. The article concludes: After going over these 24 statistics it’s very obvious to tell why traders fail. More often than not trading decisions are not based on sound research or tested trading…
The key to being patient is not what it seems From Part 1 – What the market really is to Part 2 – Share price movements we’re now taking a deep dive into to the growth of our investments. One of the things most investors struggle with is patience; the…
So now that we have a handle on what ‘the market’ is from Part 1 of the series; Investing Psychology – Part 1: What ‘the market’ really is, let’s take a closer look at the machinations of price movements on the market. An important question to have answered first is;…
The way we think and behave, the core of who we are, and our level of self-awareness with regards to our emotions, all have a direct and significant impact on our results as investors. The psychology of investing is something which has been written about in books and articles. ‘Fear…