162: The Top 8 Investor Biases That Cloud Our Judgement When Trading

The Option Alpha Podcast

Kirk Du Plessis

Investing, Trading, Stock Market, Business, Options Trading, Education, Finance

4.8 • 1.2K Ratings

🗓️ 29 August 2019

⏱️ 32 minutes

🔗️ Recording | iTunes | RSS

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Summary

Show notes: http://optionalpha.com/show162

It might seem that the markets are a game of price, and while that might be mostly true, what they are is really a game of emotions. With enough self-awareness, the "average" investor can do incredibly well. Better than many sophisticated investors.

There's so much to be said about controlling your emotions and recognizing biases that we could spend hours upon hours dissecting each one. I prefer a more optimized approach which is why I decided to do a podcast specifically on the top 8 biases that investors fall victim to. Once you learn to recognize them, you can then process the emotions behind the scenes so that it doesn't interfere with your trading.

Transcript

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0:00.0	You're listening to the Option Alpha Podcast from Option Alpha.com where we show you how to make
0:06.3	smarter trades learn how the stock market really works and generate consistent monthly
0:11.2	income. Now your host and head trader at
0:15.0	option alpha.com Kirk depluses.
0:20.0	Hey everyone this Kirk here again from option alpha working every single week to make this the most popular
0:24.9	investing podcast offered online because it's based on one thing and one thing only and that's
0:29.2	helping you guys make smarter trades because your life should have options.
0:33.0	So again, thank you so much for joining into today's show.
0:35.4	On today's show we're going to cover the top eight investor biases that cloud our judgment
0:39.9	when trading and actually I'm going to let you on a little sneak peak.
0:42.4	We actually are going to cover nine of these investor buys.
0:45.0	So I threw it an extra sneak peak kind of bonus one at the end.
0:48.0	One that I think is actually a very important one and I'll save the best for last, if you will.
0:52.0	But I want to cover these in order because I think that they're an important part of trading and to be honest this is where the rubber meets the road if you will.
1:00.0	Many times when people get started in trading myself include I still suffer from some of these biases that we feel like we have a lot of this control but a lot of that just comes down to just random biases that we've developed over time as adults and even through childhood
1:14.6	and then our earlier years or even just in our young older years we might be kind of
1:18.8	hardened like a hard sponge that used to soak up a lot of information and be flexible and
1:23.2	malleable but now we've hardened into our thought process and our theory around
1:27.5	how things should work but the reality is that many times it's not that and it's
1:31.3	maybe something wildly different so my hope is that in today's
1:34.7	podcast kind of going through these you might identify a couple of these so that the next time
1:39.6	they show up in your trading you can pinpoint And frankly, you can just blame the bias,
	...

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