Watch & Learn
How Fear and Greed Affect Investing Decisions
The ride is volatile; the decisions do not have to be. FinEdge's published position is that managing your own behaviour through the cycle — rather than reacting to it — is one of the most important aspects of successful investing.
Mayank Bhatnagar·Co-Founder & COO·12 October 2023
What this covers
The two failure modes named in the published note are greed and fear. Both convert a market movement into a portfolio decision, which is the moment a long-term plan usually breaks.
The counterweight is a rational frame: decide against the goal, not against the last quarter. That is also what makes a review different from a reaction.
Judge the plan against the goal. Market movement on its own is not new information about your goal.
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