The Canadian Investor

Dealing with Investing Biases and Will Open Banking Increase Competition?

May 13, 2024

Exploring biases in investing and the use of stop limits to protect portfolios. Insights on Canada’s Consumer-Driven Banking Framework and open banking. Tickers discussed: QSR.TO, ASML. Check out Jointci.com for the portfolio. Twitter handles: @cdn_investing, @Fiat_Iceberg, @BradoCapital, @stocktrades_ca

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Quick takeaways

Open banking in Canada will enhance competition and innovation through secure API data sharing.

Increasing CDIC limit to $200,000 can boost trust, competition, and security in the banking industry.

Deep dives

Open Banking: Empowering Customers to Share Financial Data

Open banking allows customers to securely share their banking data with financial service providers for innovative financial services. In contrast to screen scraping, where users share login details, open banking uses secure APIs for data sharing. The framework legislation is expected to launch in phases, starting with read-only access and progressing to payments initiation, enhancing competition and innovation.

Introduction

5min

Navigating Biases in Investment Decisions

14min

Navigating Stock Performance with Stop Limit Orders

8min

Analyzing Stock Volatility and Risk Management Strategies

3min

Exploring Investment Biases, Valuation Concerns, and Risk Mitigation Strategies

5min

Exploring EQ Bank's Role and the Implementation of Open Banking in Canada

18min

In this episode, we examine the complex relationship between personal biases and investment decisions. We begin by contemplating the potential pitfalls of being overly familiar with and emotionally invested in certain companies. Inspired by Peter Lynch's insights from "One Up on Wall Street," we discuss the dual-edged sword of using personal experiences and observations to gauge a company's market potential.

We then answer a listener question on the use of stop limits to protect portfolio investments during times of high market valuations. We provide a comprehensive overview of different sell limit orders, including stop limit and trailing stop limits, and share insights into their effectiveness and potential drawbacks in real-life scenarios.

The episode finishes with Simon talking to Mahima Poddar, Senior Vice-President and Group Head of Personal Banking with EQ Bank. They discuss Canada’s Consumer-Driven Banking Framework that was announced in the Federal government 2024 budget and when Canadians could expect to benefit from open banking.

Canada’s Consumer-Drive Banking Framework

Tickers of stock discussed: QSR.TO, ASML

Check out our portfolio by going to Jointci.com