Barclay Pearce Capital
- Jul 4, 2024
- 2 min read
The Negative Impacts of Biases with Roberto Russo - 1-Minute Podcast Episode 33
"The recent moves in the market have created a massive spike in volatility as global markets continue to battle rising inflation in conjunction with their respective boards, increasing interest rates accordingly.
Many investors have formed their own biases on where the market is heading.” Our Trading Operations Manager, Roberto Russo, discusses the importance of investing mindsets in volatile markets.
Read the Conversation:
The recent moves in the market have created a massive spike in volatility, as global markets continue to battle rising inflation, in conjunction with their respective boards, such as the RBA or the Fed, increasing interest rates accordingly. Many investors have formed their own biases regarding where the market is heading.
Whilst it's human nature to have a bias, it becomes a psychological battle to make clear trading decisions. Investors must have an open mindset, being reactive to ever-changing events rather than a fixed mindset. Being opinionated on where the market should or could be heading becomes an opportunity cost, missing potential gains or profits, producing frustration and in turn, irrational thinking.
The market has an interesting way of doing exactly the opposite of what it's expected to do. The best way to tackle this is to stay updated on market events and world news and monitor the market's reaction to specific news as patterns always tend to occur. It's paramount for investors to create highly adaptable portfolios in volatile times such as now.
If you would like to learn more about navigating volatile markets, please contact myself or any of our equities traders by clicking the link in the description.
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