Rules-Based Investing

Published on: Nov 15 2016

What are the traits of a successful investor. I’ve tried to make clear in Retirement Watch that in all your financial decisions you need a process. People make mistakes when they don’t have a process. They use rules of thumb, short cuts, intuition, or whatever bit of information they recently encountered. This article explains from an interesting perspective the key traits of a successful professional investor. It’s worth reading.

As a psychologist who works with a wide range of money managers, from purely discretionary to wholly quantitative, I have enjoyed a privileged window on the factors that lead to trading and investment success. That view has shown me that the best predictor of long-term returns is the presence of a well-considered, rational decision-making process that displays a deep understanding of the dynamics of the marketplace.


October 2020:

Congress Comes for your Retirement Money

A devastating new law has just been enacted, with serious consequences for anyone holding an IRA, pension, or 401(k). Fortunately, there are still steps you can take to sidestep Congress, starting with this ONE SIMPLE MOVE.

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