Wired for Safety

Dr Daniel Crosby makes behavioural finance fascinating and explains why our primitive brains are hardwired 180 degrees against investing in the stock market.Caroline StephenThe price of West Texas Intermediate Crude oil went into negative dollars for the first time in history. Here is a quick look at the price drop and the differences between Brent and West Texas Crude.  Dr Daniel CrosbyWhy is trading so hard to master? Daniel explains it.It is true, God or nature could not have created a worse investor than you or I.Our brains are wired 180 degrees backwards to invest in the stock market.Humans hate NOTHING more than uncertainty.In over 2500 years our primitive brains have not had a substantial upgrade and there is an enormous mismatch for what we were made for in cave-man times and what is required in modern financial marketsFor instance, why are we statistically wired to be 2.5 times more upset about a loss than a comparably sized win?  Daniel explains it at 9.45 minsAnd then he talks about the 3 types of risk at 11.10 mins and two primary types of behavioural errors and biases; ego and its role as a protective function in humans at 15.30 mins and emotionalism as the first-ever risk tolerance questionnaire at 18.10 mins.You will just love this interview.To find out more about him go to: LinkedIn Daniel Crosby PhD Twitter @danielcrosbyTo listen to his podcast go to Standard Deviation.  Get your free trading plan template Are you tired of the trading rollercoaster? One day you're up, the next, you're down—and it’s exhausting. You’re putting in the effort, but your results just aren’t where you want them to be. It’s time to take control. Visit www.tradinggame.com.au and grab my free trading plan template. It’s designed to help you create a plan that fits your lifestyle. Stop winging it. Let me help you! It's a fact - Traders who wing it, or go on gut feel are the ones who blow up their trading accounts. Head over to tradinggame.com.au and I’ll give you my trading plan template for free. Plus, when you register you’ll also get my free e-course, called Trading Made Simple. I’ll personally guide you through the essential steps you need to trade like a pro.  Trade confidently. Louise Bedford is a best-selling author and founder of www.tradinggame.com.au and www.talkingtrading.com.au. Facebook YouTube Twitter LinkedIn