Can you think of a time when you’ve been in the same mood all day? If you can, this was probably an abnormal day. Over the course of most days, our moods go up and down. We may wake up feeling refreshed or tired; we may go into lunch feeling hungry or distracted; we may
In today’s guide to investing we discuss Groupthink, a concept developed by social psychologist Irving Janis in 1972. The term refers to the phenomenon whereby a group will make faulty decisions, because group pressures lead to declines in mental efficiency, reality testing and moral judgments. In other words, groupthink occurs when groups tend to make
Modern economics makes an assumption for both social and economic behaviour, and that is that all individuals will choose the best course of action based on the stable preferences and limitations facing them. This is known as “rational choice theory”. Individuals will choose as rationally as possible based on the information made available to them.
Though it’s important to use logic when setting up a trade, it may surprise some that creativity also has its place in trading. Creativity is generally considered to be the ability to combine novelty and usefulness, hopefully to obtain an innovative result. It is also considered to be the ability for a person to restructure