Join our investing community

Why Smart People Do Stupid Things In The Market

Discussion in 'General Investing Discussion' started by Tropo, 25th Mar, 2009.

  1. Tropo

    Tropo Well-Known Member

    Joined:
    17th Aug, 2005
    Posts:
    3,394
    Location:
    NSW
    Why Smart People Do Stupid Things In The Market :confused:

    The next time you bail out of a losing long position just before the market bottoms, buy a “hot” stock that’s already been news for weeks, or refuse to take a small loss when the market is in the process of making it a big one, the following excuse might come in handy: The lizard made me do it.

    That, anyway, would be economist and author Terry Burnham’s explanation for why we tend to do foolish things when we trade and invest, even when we presumably know better.....
    http://www.trendfollowing.com/whitepaper/Mean_Markets.pdf