Everything on Investment Psychology

Active trading by retail investors often leads to underperformance. The 'Illusion of Control' leads many to believe they can tame the market through activity, but studies show active traders often earn up to 6% less per year than the broad market.

Impact: Recognizing this psychological trap can lead to investors to shift from high-frequency trading to long-term strategic holding.

— from Beyond the Noise: Timing the Market vs. Strategic Asset Management · Asset Class· Apr 16, 2026

Concentrated investing with high cash reserves outperforms diversified overtrading in volatile markets. Protecting against emotional errors and maintaining dry powder enables strategic deployment when clarity emerges.

Impact: Adopting a concentrated thesis-driven approach reduces transaction costs and emotional fatigue, while cash reserves provide optionality to capitalize on volatility-induced dips.

— from Bitcoin Resilience, Gold Liquidity Crisis, and Fed Policy Misalignment · The Milk Road Show· Mar 23, 2026