Bear in Mind: Cognitive bias in investing
Many Happy Returns
00:00
Understanding and Accepting Randomness
The difficulty in grasping randomness in market movements is discussed, drawing parallels between randomness in markets and quantum mechanics. The concept of Bayesian statistics is introduced as a way to approach reasoning and overcome biases, and the impact of loss aversion on investing is explored. The benefits of drip feeding investments over a 12-month period are also discussed.
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