Everything's Psychology The Psychology of Investing
14 snips
Sep 16, 2025 
Join Dr. Daniel Crosby, a psychologist and behavioral finance expert, as he dives into the fascinating interplay between psychology and investing. He reveals how biases, like overconfidence and familiarity, often lead investors astray. Discover why emotional decisions can undermine even the strongest funds and how market instincts may mislead us. Crosby also offers actionable tips, emphasizing the importance of education, environment, and encouragement for investment success. Learn why women tend to outperform men in investing and how to choose the right financial advisor.
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Temperament Trumps IQ In Investing
- Investing success depends far more on temperament than raw IQ once you have ordinary intelligence.
- Daniel Crosby shows investors often lose returns by buying hot funds and selling after drawdowns despite good long-term math.
Market Psychology Is Counterintuitive
- Our intuitive wiring is reversed for markets: fear signals opportunity and comfort signals risk.
- Good investing requires doing less, long-term thinking, and embracing uncertainty contrary to everyday instincts.
Evolution Favors Loss Aversion Over Returns
- Human brains evolved for survival, not modern finance, so loss aversion dominates decisions.
- Avoiding any bad day made sense historically but undermines long-term wealth building amid market dips.
