Reblog: Why you shouldn’t try to trade like George Soros


George Soros, founder of Soros Fund Management LLC

 

Traders tend to be overconfident and discount what they don’t know about the market and individual securities. They see patterns instead of random noise. And they have a hard time admitting their losses and focus too much on gains.

In summarizing the science of behavioral finance, Statman says we’re pretty much hard-wired to consistently make these mistakes — and lose money. Since we tend to think of ourselves as better than average on most everything from driving to investing, it clouds our rational judgment. A body of research has found this to be particularly true when it comes to amateur stock traders.

Statman said that average returns of frequent traders “lag those of infrequent traders and the average returns of infrequent traders lag average returns of investors who abstain from trading.”

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News and views? Is there one place for all?


At StockArchitect, our intention is to help investors take informed investment decisions. We have been mentioning about the Masterminds who share their knowledge and their ideas for investors. We have also mentioned how news anchors share their views for the investors.

So is it all about the Masterminds and news anchors? There is more.

We strongly believe that it is of paramount importance that investors should be aware of the events that occur both locally and globally. After all investment decisions are impacted by these events. We therefore also cover a host of Business channels and publications just to ensure that the investors have all the news as they happen right in one place.

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