07 Dec 2018

Written by Damien

Damien is one of the most widely quoted money and investment experts in the national press and has made numerous radio & TV appearances. He created MoneytotheMasses.com while working in the City when he became disillusioned with the way the public were left to fend for themselves because they could not afford financial advice.

More about Damien

How often should you check the value of your portfolio?

As humans, we are inherently bad investors. We are prone to emotional decision making and find it hard to stick to a process. Back in September, I wrote a piece explaining that if we want to improve our chances of making better investment decisions we need to understand how and why we make decisions, especially those concerning money. In a way, we need to be a little less human.

Loss aversion & anchoring

We all have behavioural biases which can cause us to make the wrong or illogical decisions, even if we are presented with perfect information. One way to improve our chances of outperforming the market is to accept our biases and try to counter them.

One of the behavioural biases I discussed in a recent note was loss aversion. Loss aversion describes investors' preference to avoid losses over making gains of an equivalent size.

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