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Publication Name: The Psy-Fi Blog

Brief description: A Sideways Look at Psychology and Finance.

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Joined: November 15th, 2011


The Psy-Fi Blog wrote a new blog post titled Forecasts? I Haven't Got A Clue ...

Small Worlds We predict things all the time, we can't help ourselves. And in the small world that constitutes our immediate bubble of experience those predictions may have some validity. But in the big world that we inhabit they often don't.  Which of those worlds do you think more accurately represents stockmarket investment? It's difficult for us to accept that our small world experience doesn't scale up to the big world, but it's often true. To all intents and purposes we're infants teetering on the edge of the volcano: to all intents and purposes we know absolutely nothing worth...
(523 days ago)

The Psy-Fi Blog wrote a new blog post titled Cursed By Momentum

Edgy Investors Although most investors have no edge on the market there's a proportion of them that persist in trading actively, the main effect of which is to enrich their brokers. There are various explanations of why this occurs, but it seems to come down to some combination of inherent overconfidence and a perverse refusal to take account of negative information.  This is particularly dangerous in calm periods such as those we’ve been experiencing in markets over the past few years.  In such times momentum strategies are particularly effective – and serve to supercharge the...
(561 days ago)

The Psy-Fi Blog wrote a new blog post titled Bias In Action

Myopic Urges The recent sharp correction in markets has clearly surprised a lot of investors. No doubt this is partly due to the standard myopia people seem to exhibit as soon as the last crash is out of sight, but it also seems to be connected to the fact that the seemingly inexorable rise in share prices and the continuing low interest rates on deposits has tempted new people into stocks. Faced, for the first time, with nasty losses they’re casting about for some kind of strategy to deal with the situation. In truth if you need to find a strategy after markets have started falling it’s too...
(586 days ago)


Tim Richards is a UK based technologist (career) and psychologist (academic) with a long-term interest in financial markets.  The aim of the Psy-Fi Blog is to present the world of finance through the lens of psychology, replacing personal opinion with academic research and worthless assertion with logical argument.  All while never losing a chance to raise a laugh at the madness of the markets.