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Tag: Market Volatility

Why I love Dollar Cost Averaging (in up AND down markets)

Why I love Dollar Cost Averaging (in up AND down markets)

I’m fairly new to the world of hands-on investing.  I’ve been contributing regularly to my RA and company Pension-fund over the years but I only recently started delving into the nuts and bolts of investing.  I started reading a lot of books, articles and blog posts about personal finance, money and investing and learned a lot!  One important concept I came across that I find crucial to understand for any hands-on investor, is what is called Dollar Cost Averaging (DCA), or as…

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Beware of Myopic Loss Aversion

Beware of Myopic Loss Aversion

I just finished “The Little Book of Behavioral Investing” by James Montier.  It is an amazing book with lots of great information.  Highly recommended!  One concept he touched on in the book is termed “Myopic Loss Aversion” which immediately caught my attention, so I want to delve into it a little in this post.   When it comes to investing, perfectly rational people sometimes make very irrational investment decisions, caused by numerous biases, but the most common of all is…

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