Nicolai Wilder. 31 Mar 2023

Founder - StockHawk

Anchoring Bias in Investing: Overcoming Past Prices

Are you aware of the anchoring effect in stock investing? This cognitive bias can have a big impact on your investment decisions. Here’s a quick thread on what it is, how it affects investors, and how to overcome it. The anchoring bias is a cognitive bias that affects stock investors. It occurs when investors rely too heavily on a piece of known information when making investment decisions. For example, an investor may fixate on the current stock price and use it as a reference point for a future “return to greatness”. The fundamentals in the business or market may have...

Nicolai Wilder. 31 Mar 2023

Founder - StockHawk

Breaking the Spell of the Latest: How Recency Bias Can Mislead Investors

Have you ever invested on recent news from a company, only to realize your excitement had downplayed a bigger narrative? I have more times than I’d like to admit. Let’s take a closer look at the psychological bias called recency bias. It’s tough since our brains are wired to prioritize recent events, especially when we try to predict future events. Recency bias is a cognitive bias where our minds tend to give more weight to recent events than earlier ones. Causing investors to skew decisions in the direction of the most recent news or stock price movements, rather than considering...

Nicolai Wilder. 9 Jan 2023

Founder - StockHawk

10 Great Accounts to Get You Started on Twitter

Twitter is a goldmine of smart content for investors with hundreds of credible commentators providing up to the minute commentary and content to make you a better investor. But where to start? Here's ten hard-working daily contributors to consider: Earnings Whispers (@eWhispers) - WebsiteThe research firm that produces the "Earnings Whisper" number posts insightful news, charts and commentary focused on upcoming earnings. Lyn Alden (@LynAldenContact) - WebsiteFinance author and engineer Lyn Alden is an excellent source of macro perspectives and charts, mixing in investment strategy and single stock commentary. Brian Feroldi (@BrianFeroldi) - WebsitePopular author and financial commentator shares guides...

Nicolai Wilder. 22 Dec 2022

Founder - StockHawk

Stock watcher tips – How to track stocks efficiently

What's the biggest difference between pro and regular investors?It's not a hyper-expensive trading terminal... Pro investors have time to continually watch the stocks they're following. Combined with disciplined investment behavior, it lets them manage risk and seek opportunities in ways that's often too time consuming for non-pro investors. Simply put, they are more dedicated stock watchers. The frequency with which you buy and sell should depend on your personal financial goals and risk tolerance. For long-term investors, it's important to not get distracted by short-term market movements. Most investors try to achieve this by simply checking portfolios less frequently. In...

Nicolai Wilder. 20 Dec 2022

Founder - StockHawk

Bollinger Bands: What They Are and How to Use Them

Bollinger bands are a technical analysis tool that can be used to measure the volatility of a security. They were created by John Bollinger in the early 1980s. The bands are made up of three lines: an upper band, lower band, and median line. When prices move away from the median line, it is an indication that the volatility of the security is increasing. When prices move back towards the median line, it is an indication that volatility is decreasing. Bollinger bands can be used by traders to identify possible entry/exit points in the market. When prices move away from...

Nicolai Wilder. 25 Nov 2022

Founder - StockHawk

Stock tracking the easy way

If you’re like most people, you probably think of daily stock tracking as something only professional investors need to worry about. But the truth is, anyone who owns stocks should be tracking them on a regular basis. Why? Because by tracking your stocks, you can minimize risk and maximize opportunity. By knowing what’s going on with your stocks, you’ll be in a better position to make informed decisions about when to buy, sell, or hold. In other words, tracking your stocks can help you make more money!If you're not tracking your stocks, you're flying blind. One of the most important...

Nicolai Wilder. 22 Dec 2022

Founder - StockHawk

Diversify your portfolio – but don’t lose your mind.

One of the most important principles in investing is to maintain a diversified portfolio. This means having a mix of stocks in different industries and sectors, to limit exposure to any single stock or risk factor. Diversification is most often measured by analyzing the correlation of stocks. Investors can either diversify on their own, or by mixing individual stocks with exchange-traded funds (ETFs). Diversification reduces portfolio risk by lowering exposure to single company headwinds and cyclical market trends. It's also important to consider exposure to currencies, commodities, and regions. The drawback is that it can limit short-term gains and be...

Nicolai Wilder. 11 Nov 2022

Founder - StockHawk

Neglect is a bad investment strategy

Investor behavior seems to be full of contradictions. We work hard and save. But when the time comes to grow our nest egg, a radically different environment awaits. For many, the journey starts with enthusiasm. The stock picking horse race is exciting. Some are methodical and analytical; others place bets on their favorite brands. Our bias is to invest in what we understand, and our actions as investors often reflect it. Loss aversion psychology amplifies the tendency to avoid risks that are hard to quantify or calculate. Diversification is touted as “the” risk-aversion strategy, but the cost is rarely considered....

Nicolai Wilder. 10 Nov 2022

Founder - StockHawk

Let’s drop the price of your sanity

A recent Gallup survey found that 58% of surveyed Americans said they owned stocks. But keeping up with a diversified portfolio, or any list of stocks isn’t easy. Daily price movements don’t give reason or context, so investors typically use multiple sources beyond their broker to stay updated and get new perspectives. This has fueled an explosive growth in related newsletters, social media, and analysis sites. Giving each investment 5-10 minutes of attention per day can easily add up to over an hour, so many retail investors track diligently in the beginning but eventually give up. Daily check-ins become weekly,...