When you’re making an investment decision (or just thinking about money) do you suffer from any of the following symptoms: increased heart rate? A feeling of choice paralysis? Constantly second-guessing yourself?
These are all signs that you’re not a cold-blooded and completely rational machine when investing. But that’s okay – you’re human. No one is always 100% unemotional – even if for years economists assumed people acted that way.
For most of the 20th century, mainstream economists taught that markets are what they called “efficient” – that prices of stocks and bonds reflect all the information that’s available. And that market movements were down to human beings processing all this information rationally and therefore making rational decisions.
In this perfect model, it’s the
Limited introductory offer
Get full access to daily stories, insights, deep-dives, interviews, podcasts, and more
Have an account? Log in
EXPLORE MORE
Buying low and selling high is one of the hardest things to do in investing. Jon explains how the RSI can give you a clearer picture of what’s low, what’s high, and what’s next.
It’s the one technical tool that can give your trading skills a boost like almost no other. Jon explains why.
These simple lines can offer you a clearer look at the overall trend in an investment’s price. Jon explains how to put them to work.