The Psychology of Money20 insights · See all
- Academic finance can mislead practitioners because neat formulas and statistically optimal rules often ignore psychological limits and practical constraints, making those prescriptions infeasible or harmful in real-world investing.
Academic finance can mislead practitioners because neat formulas and statistically optimal rules often ignore psychological limits and practical constraints, making those prescriptions infeasible or harmful in real-world investing.
- Taking cues from traders playing a different game misleads long-term investors because short-term participants move marginal prices for horizon-specific reasons that don't align with long-term objectives, causing poor timing and losses.
Taking cues from traders playing a different game misleads long-term investors because short-term participants move marginal prices for horizon-specific reasons that don't align with long-term objectives, causing poor timing and losses.
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