On today’s episode, we have Dr. Daniel Crosby joining us for an insightful discussion about the psychology behind investing behaviour. Dr. Crosby is a behavioural finance expert and asset manager who applies his study of market psychology to help people better understand the financial decisions they make and to shed some new light on our ability to be rational. We talk about the inevitability of our emotions and how they impact our actions, but also how they might be leveraged for positive outcomes. As far as behavioural biases are concerned, overconfidence is by far the biggest threat to our investment success, but on the flip side, Dr. Cosby shares why, outside of investing, this trait can serve us really well. We enquire about his thoughts on how wealth changes people’s behaviour, on whether the FIRE Movement has some credibility to it, and he explains why having a strong theoretical underpinning is necessary when making decisions based on empirical data. Join us for some more science-based investment advice! Key Points From This Episode: 2:26 The rationality of people and the possibility of leveraging emotion in finance. 6:46 Research that shows why you should work with a financial professional. 11:05 Behavioural biases and overconfidence as the most dangerous one. 13:47 Avoiding overconfidence by understanding that investment rules are different. 17:58 The extent to which people’s behaviour is affected by those around them. 25:36 How significant changes in net worth changes a person’s investment traits. 28:06 Thoughts on the FIRE Movement and how investors should look at risk. 37:06 Behavioural and risk-based factors and the necessity of a theoretical underpinning. Books From Today’s Episode: The Laws of Wealth — https://amzn.to/2ByIxve The Behavioral Investor - https://amzn.to/3kye15N Links From Today’s Episode: Rational Reminder Website - https://rationalreminder.ca/podcast/75 Dr Daniel Crosby on LinkedIn — https://www.linkedin.com/in/danielcrosby/ Dr Daniel Crosby on Twitter — https://twitter.com/danielcrosby Brinker Capital — https://clients0.brinkercapital.com/ Brigham Young University — https://www.byu.edu/ Standard Deviations podcast — https://www.standarddeviationspod.com/ The PERMA Model — https://positivepsychology.com/perma-model/ Listen to the Rational Reminder podcast on your favourite podcast app. https://pod.link/1426530582/ You can follow Cameron Passmore and Ben Felix on Twitter: ➡️ https://twitter.com/CameronPassmore ➡️ https://twitter.com/benjaminwfelix Check out Ben's YouTube channel. 📺 https://www.youtube.com/benfelixcsi Catch up on the latest in wealth management and investing insights from the Passmore-Felix Team at PWL Capital. https://www.pwlcapital.com/teams/passmore-felix/?utm_source=youtube&utm_medium=copy&utm_campaign=rr&utm_content=rrvideo The Rational Reminder is presented as an educational resource and should not be construed as individualized investment advice, nor as a recommendation to buy or sell specific securities. The funds and portfolios discussed are examples only and may not be appropriate for your individual circumstances. #rationalreminder #investing #podcast