nnuut
Moderator | TSP Legend
Dec. 11, 2012, 6:00 a.m. EST
The missing link of investing
Commentary: Science may explain why we trade
SAN FRANCISCO (MarketWatch) — When asked why we trade, many of us would answer with traditional, rational responses.
We see an undervalued company. We like a business, a brand or a strategy.
Or, it’s the flip side: We’re selling because we may think the fundamentals point to trouble. We see an investment that looks overvalued.
We even may understand that what underlies those explanations is the powerful and universal influence of fear and greed.
So it’s no surprise that most of us follow the herd. But what about the outliers? These are the people who stay calm when there’s a panic. They panic when there’s too much calm. They’re the contrarians. Sometimes their moves result in remarkable success. Other times, they get wiped out. [more]
The missing link of investing - David Weidner's Writing on the Wall - MarketWatch
The missing link of investing
Commentary: Science may explain why we trade
SAN FRANCISCO (MarketWatch) — When asked why we trade, many of us would answer with traditional, rational responses.
We see an undervalued company. We like a business, a brand or a strategy.
Or, it’s the flip side: We’re selling because we may think the fundamentals point to trouble. We see an investment that looks overvalued.
We even may understand that what underlies those explanations is the powerful and universal influence of fear and greed.
So it’s no surprise that most of us follow the herd. But what about the outliers? These are the people who stay calm when there’s a panic. They panic when there’s too much calm. They’re the contrarians. Sometimes their moves result in remarkable success. Other times, they get wiped out. [more]
The missing link of investing - David Weidner's Writing on the Wall - MarketWatch
