➕ ➖ CALCulated Thinking ✖️➗

Episode #6: Action Bias

Did you know that humans often favor action over inaction for the sole reason of doing SOMETHING?

A🧵on the behavioral phenomenon that could be costing your portfolio dearly 📉 Let's begin by familiarizing ourselves with some typical -Action Bias- daily scenarios:

👉 The driver who is late to a meeting and is constantly changing car lanes in traffic when there is no clear indication that one is faster than the other.

➕➖ CALCulated Thinking ✖️➗

Episode #5: Systems for investing ⚙️

If habits make the person, rules make the investment strategy.

Is having a clear system for your investments the key to becoming a successful investor?🧵 1/ HABITS

Habits are the bite-sized components that make up our lives.

Good habits like eating healthy, working out and being generous create positive outcomes in life.

Bad habits like eating junk food, over-partying and gossiping create negative ones.

See @PowerOfHabitt

Episode #4: Is your portfolio risk-balanced? Probably not! 😲

When we allocate our portfolios, we do so based on our asset conviction, and often over-simplify risk in the process.

But is this the alpha play for managing risk?

By @Marco_112358 (CALC Strategy DAO)

🧵 Deciding on your portfolio’s asset allocation is challenging.

Doing so by comparing your belief in certain assets over others tends to be a good basis.

But this comes at the expense of risk: humans are hard-wired to be terrible at judging risk👇

wired.com/2007/03/securi…

Harnessing the herd mentality 🐑🐑🐑🐑

It's obvious that not everyone on #twitter has your best interests at heart but have you ever blindly invested in something because everyone else was doing it?

Why?

A #GrownUpDeFi THREAD: 🧵 What is herd mentality?

→ The tendency of people in a group to think and behave in ways that conform with others in the group rather than as individuals.

Breaking the #FOMO mindset 😰 🧠 📌 🔨

Be more self-aware when making investment decisions by better understanding the mechanics behind the FOMO phenomenon.

🧵 'Fear of missing out' refers to the fear of not being included in something that others are experiencing.

It's a behavioural phenomenon that can directly influence our investment decisions and is rooted in a fundamental human need:

→ A sense of belonging.

Loss aversion — a behavioral phenomenon where humans show a higher sensitivity to potential losses than to gains — is most likely negatively affecting your investment decision making.

But what exactly is loss aversion and how can understanding it make you a better investor?

🧵 The tendency to value something more when it is lost rather than gained is deep-rooted in our evolutionary history:

→ Those that feared the snake in the grass were more likely to pass on their snake-fearing genes than those who were too greedily picking fruit to notice.