Investor Biases

MarketSmith India_ Investor Biases Article

“Don’t argue with the market. Never try to prove you’re right and the market is wrong.” – William J. O’Neil, MarketSmith Founder

In the last week’s learning article, we discussed how a rules-based investing system helps an investor to stay clear of biases. Biases can be of two types: cognitive biases, which stem from faulty reasoning, errors in processing information, and memory errors; and emotional biases, which arise from emotions rather than any conscious thought. Between these two types of biases, cognitive biases are easier to correct, through understanding one’s mistakes and learning from them.

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Daily Big Picture – Key Indices Trade Flat in a Lacklustre Session


DailyBigPicture-MarketSmithIndia-WilliamOneilIndiaToday’s Action:

The benchmark indices ended the day with marginal losses. The broader indices recorded minor gains.

Daily Market Review

The benchmark indices were range bound in today’s session due to lack of domestic and global market triggers. Further, investors seemed to take a cautious stance as the roll-out date for GST approaches. After starting the day in the positive territory, benchmark indices pared its initial small gains to end flat.

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