by Michael Carr | Aug 17, 2023 | Banyan Edge, Earnings Season, Investing, price targets, Stocks, trading strategy, U.S. Economy
Earnings season happens every three months. This is when companies share details on their recent financial performance, which helps investors understand how the company is operating. Companies file these reports because they have to. Under SEC regulations, they’re...
by Michael Carr | Aug 10, 2023 | 2023 investing, Banyan Edge, Buy and Hold, Investing, Investing Strategy, Investment Opportunities, Options Trading, risk management, short-term investing, Trading Strategies, Warren Buffett
Over the past few weeks in my articles, I’ve given you a quick crash course on the psychology of trading. I started by explaining how trying to avoid losses can lead to more losses. Then I discussed how our biases affect our opinion on the stock. This lead to us...
by Michael Carr | Aug 3, 2023 | 2023 investing, Banyan Edge, Investing, Investment Strategy, investor psychology, market sentiment, stock trading, Stocks, Trading Strategies
How we think impacts our investment returns. Some investors are rather surprised by this. They believe profits result from buying low and selling high. But it’s actually their thinking that determines whether prices are low or high. As an old trader once told me:...
by Michael Carr | Jul 27, 2023 | anchoring, availability bias, Banyan Edge, cognitive bias, GameStop, herding, Investing, investing strategies, Recency, salience, Stocks
Last week, I wrote about the pain of losses. We have mathematical proof showing that painful feelings of losses cloud our decisions. If we overcome that fear of pain, we could achieve better results as traders. But shrinking from the pain of losses is just one way our...
by Michael Carr | Jul 20, 2023 | arkk, Banyan Edge, Investing, loss aversion, Trading Strategies
The Journal of Economic Perspectives is an important read for investors. This journal issue showcased one of the most important charts investors will ever see. The chart I’m talking about appeared in a paper called Anomalies The Endowment Effect, Loss Aversion, and...
by Michael Carr | Jul 13, 2023 | Banyan Edge, Investing, investing opportunities, risk management, short-term investing, short-term strategies, stock trading, Trading Strategies, trading strategy
Short-term trades can deliver massive gains. I wrote about that and the huge advantage of short-term trading last week. Yet many investors are reluctant to actively trade. Instead, they joined the “buy and hold” cult. Now, I understand the hesitation to trade. Buy and...
