How to Use Behavioral Finance

Published on
June 25th, 2019
Duration
6 minutes

How to Use Behavioral Finance

Mental Game of Trading ·
Featuring Rick Bensignor

Published on: June 25th, 2019 • Duration: 6 minutes

Rick Bensignor, founder of The Bensignor Group, has been using behavioral finance to understand his own decision making since before it had a name. In this episode, he highlights its recent acceptance into the mainstream and gives examples of how one of the main tenets - understanding your financial upbringing – can help professional investors manage the psychology of their clients, their competitors, and themselves.

Comments

Transcript

  • MF
    M F.
    28 June 2019 @ 16:49
    Rick...thank you...when you said you had a behavioral bias against buying strength, and once you knew that it helped you trade better, could you elaborate on how this helped you trade better?
    • RB
      Rick B. | Contributor
      2 July 2019 @ 18:24
      M.F. - Once I realized and accepted my trading "weakness", I became much more conscious about looking objectively at price movement, and ultimately, my willingness to buy upside breakouts (something I had struggled with while trading in the pits). For years now, I'd say that I enter bullish trades about 75% of the time. Back on the floor, I would say that 3 out of 4 trades I initiated were on the short side. We're in a long-term bull market, and my being able to buy strength has been a great addition to my overall returns. - Rick