THE REALITY IS,
IT IS INVESTOR BEHAVIOUR THAT DRIVES PRICES

Don’t be a minnow, take the world by storm, be real, factual and honest

And understand the reality of behaviours in finance

More information = better results – wrong

Over trading = better performance – wrong

Our perspective is wilting under the data deluge

We have been reprogrammed to live in a dopamine economy

Every tiny hit of excitement – movement – story – sparks us to life

But it doesn’t make up better traders

FIGHT AND FIGHT HARD FOR YOU TRADING LIFE.

We must have Focus, Perspective and Simplicity

Patience is a trader’s greatest asset

Resist the urge to move because everyone else is

It endears underperformance

We are naturally overconfident in our abilities.

Know what markets will do and how they really work.

We don’t need to predict we just need to follow

We feel the pain of losses twice as much as the enjoyment of gains

We pursue rallies greedily but bolt from corrections in fear.

Discipline and perspective tells us we must do otherwise

BE YOURSELF, BE INDIVIDUAL, BE A GREAT TRADER

This requires one of the greatest trading assets along with patience.

DISCIPLINE.

Discipline tells us what to do and what not to do.

What’s right and what’s wrong.

EMOTIONS ARE SHREDDED FROM DECISION MAKING

Our lives have been wrung into tatters by the media and

its need to feed on glory of the story.

What do the experts really know – zip – It’s all about telling a story

What do the 20 economists/experts varied predictions tell us – absolutely nothing

They get paid to chat and espouse

Why do we have need for the mountains of research, tables and market commentary

We Don’t!

Hang what’s right and what’s good as we just lap it all up

Our need for information, something to do, and for doses of dopamine to feel good.

Hang the result – that’s what happens

Behavioural finance is the focus these days.

It overrides analysis, data mining, immediacy.

Think before you trade know why you trade.

If you know why buy, you’ll know what to buy,

 If you know why you sell, you’ll know hat to sell.

What’s your plan?

The objective is enjoyable success.

THE BEHAVIOURAL PAYMENT LIES WITH THOSE WHO

STAY RATIONAL WHILE OTHERS CANNOT.

Don’t trade with Bias, Emotion, or be Overconfident.

These three common trader traits lead to investors losing money

or achieving lower returns

It’s about being focused on process not outcome.

Rarely if ever do we stop to consider how much information

we need to know to make a decision.

‘The greatest obstacle to discovery is not ignorance – it is the illusion of knowledge.’ – Daniel J Boornstin

Reducing our knowledge to the 3 or 4 special analysis tools that really matter

leaves us better off and more focused

Too much information leads us to feels overconfident in the extreme,
but it does little to aid us

Switching off the information flow is a great step towards preventing yourself from becoming a slave to the market.

We must control ourselves not let the market control us.

Perspective, Focus and Simplicity – be an Individual

LAY OUT THE 3 or 4 ANALYSIS TOOLS THAT MATTER.

DO IT FROM A WISE AND SENSIBLE PERSPECTIVE.

HAVE THE DISCIPLINE TO LISTEN AND RESPOND.

DON’T EVER DETOUR FROM THAT.