My guest today is Daniel Crosby, a psychologist, behavioral finance expert and asset manager who applies his study of market psychology to everything from financial product design to security selection. He is co-author of the New York Times bestseller Personal Benchmark: Integrating Behavioral Finance and Investment Management and founder of Nocturne Capital. He is at the forefront of behavioralising finance. His ideas have appeared in the Huffington Post and Risk Management Magazine, as well as his monthly columns for WealthManagement.com and Investment News.
The topic is his book The Laws of Wealth: Psychology and the Secret to Investing Success.
In this episode of Trend Following Radio we discuss:
- Expert discretion
- Efficient market theory
- The eradication of guinea worms
- Human ego
- Warren Buffett and his trading strategy
- Passive investing
- Sigmund Freud’s impact on trading
- Standard deviation as a proxy for risk
- Matching “the benchmark”
“We tend to delegate the dangerous and own the advantageous.” – Daniel Crosby
“Trouble is opportunity.” – Daniel Crosby
Mentions & Resources:
- Daniel Crosby
- “The Laws of Wealth: Psychology and the Secret to Investing Success”
- Sigmund Freud
- Gerd Gigerenzer
- Richard Thaler
- Daniel Kahneman
- Amos Tversky
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