Our guest this episode is Dr. Daniel Crosby — psychologist, behavioral finance expert and Chief Behavioral Officer at Orion Advisor Solutions. Daniel is the bestselling author of several books on the psychology of money, including "The Behavioral Investor" and "The Soul of Wealth," and is the host of the popular podcast "Standard Deviations." His mission is to help investors and advisors understand how psychology shapes financial decisions and what true wealth really means.

In this episode, Dave and Daniel dive into the psychology behind investing and the behavioral biases that quietly sabotage even the smartest investors. They break down the four major investor biases, why overconfidence is the most damaging of the bunch and Daniel's "Three E's" framework for overcoming them. They also explore why money is emotional rather than purely mathematical and the role behavioral fintech design can play in helping people make better long-term decisions.

The conversation also explores the rise of the "gamblification" of investing, the impact of social media on young investors and why personal benchmarking tends to serve people far better than chasing the S&P 500. Along the way, Daniel shares his framework of believing, belonging and becoming as the keys to a good life, his perspective on managing anxiety in uncertain times and why so many investors still fall into the trap of buying high and selling low.

Whether you're a seasoned investor or just starting to think about your relationship with money, this episode is packed with insights that will help you understand yourself as much as the markets.

Show Notes

(00:00) Intro & Disclaimer

(00:55) Intro to Daniel Crosby

(03:02) Daniel's Path From Psychology to Finance

(05:21) Statistics on Reading

(06:48) The Four Major Investor Biases

(13:12) The Three E's to Overcome Biases

(18:25) Why Overconfidence Is the Most Damaging Bias in Investing

(19:02) Money Is Emotional, Not Just Mathematical

(22:50) Daniel's Role at Orion & Behavioral Fintech Design

(24:56) Personal Benchmarking vs. Chasing the S&P 500

(25:45) Mental Accounting & The House Money Effect

(26:50) The Gamblification of Investing & Young Men

(30:36) Social Media's Damage to Young Investors

(33:51) Believing, Belonging & Becoming: Keys to a Good Life

(38:56) Managing Anxiety in Uncertain Times

(42:05) Why We Buy High & Sell Low

(44:19) Conclusion