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

Advisers reveal stagnation in private market allocation

Advisers reveal stagnation in private market allocation

Majority say that it has not changed in the past 12 months

Isabel Baxter
clock 07 November 2024 • 2 min read
Schroders Personal Wealth ditches multi-manager structure

Schroders Personal Wealth ditches multi-manager structure

All funds to be managed by Schroders

Valeria Martinez
clock 06 November 2024 • 1 min read
Partner Insight: Navigating the great wealth transfer

Partner Insight: Navigating the great wealth transfer

The great wealth transfer represents opportunity and risk in equal measure for financial advisers.

Warwick Bloore Senior Specialist, Adviser Research Centre, Vanguard, Europe
clock 06 November 2024 • 6 min read