Why Our Chimp-Like Brains Lose Money on the Stock Market

Complete video at: http://fora.tv/conference/big_picture_conference_2011

Barry Ritholtz, author of Bailout Nation, describes one human tendency that can hinder successful stock trading: our preference for stories over data. When an analyst or CEO tells a convincing anecdote, he explains, stockholders are more likely to trust the narrative over objective research.

Image credit: Bradypus via Wikimedia Commons

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Drawing upon the ideas and popular talent featured in his well-regarded blog, The Big Picture (www.ritholtz.com), Barry Ritholtz presents The Big Picture Conference, a one-day, on-demand event that offers sharp insight into the financial markets, the economy and the dangerous intersection between government and Wall Street.

Barry L. Ritholtz is one of the few strategists who saw the the coming housing implosion and derivative mess far in advance. Ritholtz issued warnings about the market collapse and recession in time for his clients and readers to seek safe harbor. His observations are unique in that they are the result of both quantitative data AND behavioral economics.

In 2010, Barry L. Ritholtz was named one of the "15 Most Important Economic Journalists" in the United States. Ritholtz writes a column on Investing for the Washington Post; he also contributes occasional column to Barron's and Bloomberg (See The Myth of Uncertainty). Previously, he authored the popular "An Apprenticed Investor" columns at TheStreet.com, a series geared towards educating novice and intermediate investors. Mr. Ritholtz has published more formal market analyses at the Wall Street Journal, Barron's, The Economist, and RealMoney.com. Mr. Ritholtz is a frequent commentator on economic data and financial markets. He is a regular guest on CNBC, Bloomberg, Fox, CNN, ABC, CBS, NBC, PBS, MSNBC, and C/SPAN. He has appeared on numerous shows, including Nightline, ABC World News Tonight, NBC Nightly News with Brian Williams, Fast Money, Kudlow and Co, and Power Lunch, and has guest-hosted Squawk Box on numerous occasions. He appears regularly on radio for Bloomberg, NPR, CBS, and other broadcasters.

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[YY4Me133]

This also explains the appeal of religion.

[slonamu]

What is dangerous is that market is rigged...

[nahaymath]

This is what I have screamed to the world for 30+ years.

This is why I have become sick of movies and tv (well, not entirely).

They are nothing but dumb entertainment.

Great job, Barry Ritholtz!

[truthtofind]

@truthtofind

This comment IS NOT spam.  It is a valid point related to another person's comment, which in turn is related to the video. The illegitimate marking of these posts as spam is indication of dishonest parties.

[5avan10]

This also applies to voters.