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covel-with-daniel-kahneman.md

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Michael Covel with Daniel Kahneman

Observing the human condition with a trader and behavioural psychologist. Section (starts 7:15) via YouTube

Memory vs. Experience

We seem to be planning our vacations as constructing memories for use in later consumption (photographs are symbolic of this).

In fact we spend a massively disproportionate amount of time on the consumption of experience relative to memories.

Consumption of memories is negligible relative to time spent having experiences.

Yet we put a disproportionate amount of weight on the consumption of memories. (Facebook/Instagram vs VR)

Ability to record our experiences more easily undoubted changed our lives.

Loss Aversion at Work

"Person who has not accepted losses is susceptible to more risky behaviours (gambles)"

Traders take more risks in the afternoon (empirically shown); actors in financial market exhibit this exact behaviour.

Rational vs. Irrational Markets

Older generation naturally has less knowledge of behavioural finance since it is relatively new field. Kahneman sees younger generation more accepting and knowledgeable in his area of research.