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.  If you’ve been trading for a while but still feel like you’re spinning your wheels — I get it. It’s frustrating watching others move ahead while you’re stuck in the same place. Let's pinpoint what’s holding you back and map out your next steps. Fill out the short survey at survey.tradinggame.com.au and lock in a phone call with Louise. This could be the conversation that changes your trading life.   A quick reminder... The special introductory fee for my Mentor Program Pro course is ending soon. This 6-week repeat-for-free course could be the turning point in your trading life. Visit tradinggame.com.au/mentor and secure your place while the offer lasts. 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