In recent weeks we’ve covered behavioural finance from various angles. But we haven’t yet covered off some practical steps to save ourselves from ourselves; strategies for making good investment decisions. So that’s our mission today – stay tuned for some easily applicable tips and tricks to stay safe in the big bad world of investing.

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In this session you will discover:

• What influences the key decisions we make
• Why predicting the future is a mug's game
• Why even the experts get investing decisions wrong. A lot.
• Why making decisions based on the news is pointless

And practically,

• How to create a decision-making framework before the decisions have to be made
• How to limit your news intake
• Why knowing the asset allocation of your portfolio can lead to internal peace
• How to focus on the long term plan
• The best resource for self-education about investing

[Tweet “Put in place a framework for making financial decisions, BEFORE you have to make them”]

Making good decisions is all about keeping your eyes on the reasons why and putting a framework around yourself to make it easier to make good decisions in the moment, or to defer those decisions until the heat of that moment has passed. I hope the suggestions in this session are helpful.

For a full transcript, click the button below.

Join the conversation

I love to read and respond to your comments, so please do join in and share: Question: Have you ever made a silly investment mistake? How will you react differently next time?

Resources

Interview with Greg B Davies of Barclays about behavioural finance in session 108 and part two in session 109

Interview with Doug Goldstein last week in session 117

Podcast about How to talk to your partner about money – session 55

Podcast about Asset Allocation – session 105

BBC News app for iPhone and Android

Book – Smarter Investing by Tim Hale (Amazon affiliate link)

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My thanks to Andybiscuits, Hypersaver and Chiny91 for their reviews this week – much appreciated!

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