Stocks & Commodities V. 36:02 (60–61): Your Intuition's Role In Trading Decisions by Robert Reifert

Your Intuitions Role In Trading Decisions by Robert Reifert

Weve all been taught that sometimes you must trust your instincts, but should you let your portfolio be guided by your intuition? Find out what the intersection of behavioral finance and evolutionary psychology has to say about it.

It's human nature to celebrate achievements. When we earn positive returns on our investments, we boast about them. But we never speak of our investment losses.

Conventional thinking views the financial market as a collection of investors acting on rational and informed financial decisions. However, a closer look will reveal that most of those decisions are based on feelings rather than on rationality. Anyone can have an intuition about a stock, but how much can that intuition be trusted? The market is made up of millions of investors acting on their instincts, which has been hardwired into their brains ...