Enjoyed this conversation guys! Thanks for sharing. As someone who began recently I definitely fell victim to the first two with Meta. Recency bias: Meta's not a good stock b/c they're wasting money on VR and the Metaverse. Anchor bias: I should wait on a better opportunity than Meta to invest- when my pool of researched stocks was low and it in hindsight was the best buy at the time. For when a stock you've researched starts going down, I'm hoping that setting a limit buy is enough to prevent me from getting cold feet. That's not mine btw, kudos to Lauren Templeton~
Thanks for the encouragement, it’s much appreciated! Have recently come across Ulysses contracts (essentially what you are describing in this circumstance with the use of limit orders) as a strategy to assist with this. Essentially it involves advanced decision making which in this case involves setting a limit order to buy at a preset price. It tries to remove emotion from the equation.
@@compoundeverything oh I've read that one too! Where mechanical decisions deliver superior results compared to human judgement. Also how social chatter and news can lead to us to see irrelevance as being relevant. I like the bulk of the book. There is one part that I'd push back on though- the part on EMT and that there's no point to picking stocks b/c he believes people can't beat the index as much as before. I'll be continuing the practice of value investing. Only time will tell if my mettle is foolish or not.
Enjoyed this conversation guys! Thanks for sharing. As someone who began recently I definitely fell victim to the first two with Meta.
Recency bias: Meta's not a good stock b/c they're wasting money on VR and the Metaverse.
Anchor bias: I should wait on a better opportunity than Meta to invest- when my pool of researched stocks was low and it in hindsight was the best buy at the time.
For when a stock you've researched starts going down, I'm hoping that setting a limit buy is enough to prevent me from getting cold feet. That's not mine btw, kudos to Lauren Templeton~
Thanks for the encouragement, it’s much appreciated! Have recently come across Ulysses contracts (essentially what you are describing in this circumstance with the use of limit orders) as a strategy to assist with this. Essentially it involves advanced decision making which in this case involves setting a limit order to buy at a preset price. It tries to remove emotion from the equation.
@@compoundeverything oh I've read that one too! Where mechanical decisions deliver superior results compared to human judgement. Also how social chatter and news can lead to us to see irrelevance as being relevant.
I like the bulk of the book. There is one part that I'd push back on though- the part on EMT and that there's no point to picking stocks b/c he believes people can't beat the index as much as before.
I'll be continuing the practice of value investing. Only time will tell if my mettle is foolish or not.