Dan Brocklebank: Fight your instinct - this is a long-term game

Avoiding behavioural pitfalls

clock • 6 min read

Behavioural studies show investors can make all sorts of mistakes under pressure, so how can advisers help their clients avoid such pitfalls? Dan Brocklebank offers some suggestions

The image of the swashbuckling trader who steps into the fray and wins big while others are panicking has almost become a cliché. The reality, however, is usually far less exciting. In fact, when there is any ‘excitement', it often comes from poor decisions. Behavioural studies show that all sorts of things can go wrong under pressure - our survival instinct kicks in, our time horizons narrow and we focus on avoiding pain rather than maximising long-term reward. So, how can you help your clients avoid falling into this trap?  1 Get the timing right It starts with taking a long-term ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Partner Insight:  Unlocking value: The essential guide on how to manage the transition

Partner Insight: Unlocking value: The essential guide on how to manage the transition

Schroders' Tim Carr and Ghislaine Perry discuss how to evaluate the need for change, key points to consider when choosing the right investment partner and how to manage the transition.

Schroders
clock 13 February 2025 • 2 min read
Watch Professional Adviser's Working Lunch on the Baillie Gifford American fund - 'The Ostrich, the Index, and Us: seeking exceptional US growth in a top-heavy market'

Watch Professional Adviser's Working Lunch on the Baillie Gifford American fund - 'The Ostrich, the Index, and Us: seeking exceptional US growth in a top-heavy market'

Catch up on the discussion

Professional Adviser
clock 10 February 2025 • 1 min read
Alec Cutler: The swinging pendulum of investor sentiment

Alec Cutler: The swinging pendulum of investor sentiment

Exploring how investors view the ever-changing energy market

Alec Cutler
clock 05 February 2025 • 4 min read