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

PA Working Lunch: Orbis on risk and return from the bottom up

PA Working Lunch: Orbis on risk and return from the bottom up

Join PA and Orbis on Wednesday for an informative online session

Professional Adviser
clock 20 January 2025 • 1 min read
Quilter's WealthSelect rebalances in response to bond market

Quilter's WealthSelect rebalances in response to bond market

Following recent government bond market performance

Isabel Baxter
clock 17 January 2025 • 1 min read
PA Awards 2025: Multi-asset shortlists revealed

PA Awards 2025: Multi-asset shortlists revealed

The industry’s best in balanced, high yield, adventurous and cautious funds

Professional Adviser
clock 15 January 2025 • 2 min read