Should You Trust Popular Trading Proverbs?

Sometimes an oft-repeated axiom, maxim, or cliché has at least a little piece of reality to it. Others make good sense and are true in some circumstances, but not others..

The world of finance and investing is no exception to the coining of popular axioms and the mistaken beliefs that can accompany them– specifically when it comes to trading stocks. Traders are well-supplied with often repeated sayings that speak to perceived information patterns. And they should work to gut-check choices pestered by their own psychological biases.

On this episode of Financial Decoder, host Mark Riepe is joined by Nathan Peterson, director of derivatives analysis, to unpack a handful of these more ubiquitous expressions around investing and trading and offer insight into how much weight they ought to bring in your decision-making.

To check out the research study Mark recommendations on the connections in between danger tolerance and visceral pain, take a look at " Relating the Visceral Element of Pain to Domain-Specific Threat Attitudes" () in the Journal of Behavioral Choice Making.

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Should You Trust Popular Trading Proverbs?

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