I have written a new paper: ‘A Behavioural Finance Toolkit’, which aims to provide an introduction to the topic and look at how we can apply its lessons. The paper concludes by offering the following six steps to improve our investment decision making:
+ Do have a long-term investment plan.
+ Do automate your saving.
+ Do rebalance your portfolio.
x Don’t check your portfolio too frequently.
x Don’t make emotional decisions.
x Don’t trade! Make doing nothing the default.
You can find the full paper here.