Focus on investment strategy, not outcome

Focus on investment strategy, not outcome
News from CBS News:

(MoneyWatch) How many times have we seen the good outcome of a decision we made and thought, “I’m glad I made that decision”? The problem with that approach is that it could get us into much bigger trouble down the road, especially with our investments.

When we make that statement, we don’t focus on how sound the decision really was. If we saw a good outcome from a poor decision, we become more likely to make that same poor decision again. We believe the outcome was much more likely than it actually was, a condition called “hindsight bias,” or the idea that we see events as having been much more predictable than they were prior to actually occurring.

Hindsight bias gets us in trouble in investing. Why? Because we might get lucky with an investment but believe that our logic was sound from the very beginning. It’s not much different from a poker player making a crazy bet and only being able to win the hand if the king of clubs shows up as the final card. When that card shows up, it can entice the player to think the odds were much greater than the 4 percent chance he actually had.

Hindsight bias can bring undeserved rewards to irresponsible risk takers who take crazy gambles and win. The winners never get punished fo…………… continues on CBS News

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Direxion Enhances Website As A Comprehensive Educational Resource
News from Sacramento Bee:

BOSTON, Nov.¬†28, 2012 /PRNewswire/ —¬†Direxion, a leader in alternative investment solutions, has merged its websites for Direxion Funds and Direxion Shares into a single online destination, The enhanced website allows advisors and investors to conveniently access original research and detailed information about alternative investment strategies and Direxion’s investment products.


Expanded content on the redesigned includes a library of original Direxion white papers, webinars, videos, presentations and other resources to help advisors and investors fully comprehend the advantages that alternative investment strateg…………… continues on Sacramento Bee

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