Quote:
Originally Posted by CaptainYooh
I measure my portfolio performance annually and it was almost 25% up by June. Then everything started to slide, of course. Not that it's the key factor, but I get your point.
Not sure I follow your reasoning. Please elaborate on the "pressure to act" behavior. (For some reason I thought you're a lawyer, not a finance guy.)
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I too am a portfolio manager and an investment advisor. Several lawyers around here, but I am not one of them.
The pressure to act is just human behavior and how it works against us. We are over-confident (especially men), and then when the market moves against us, we feel stressed and it causes us to act emotionally, when that is exactly what we should be avoiding.
There is a mountain of information on behavioral finance and how human behavior is not built for investing, if you are interested.