The AlphaMind Podcast

#64 Paul Craven: How the Mind Plays Tricks on Traders & Investors


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Paul Craven, a behavioural expert with a strong background in the investment industry, shares some fascinating insights into how the mind plays tricks on us that impact how we make decisions and choices in our trading and investment activities.

Paul  is an expert in the field of behavioural finance. He talks. lectures and has a deep passion for this topic. Paul understands the challenges people in these fields face from having spent a career in the industry working for leading firms such as Schroder’s Investment management, PIMCO and Goldman Sachs. 

Paul's now works to promote the understanding of how behaviours impact how people make decisions in their business, trading and investment activities. Paul believes that a better understanding of psychology and how real people make real decisions in the real world provides a strong competitive edge to those who embrace it.

As a well-known industry public speaker, Paul has given an excellent TEDx talk, offers private consultancy and decision-making workshops, and is a visiting lecturer at the London Business School. In addition Paul also has a fascination for the world of magic, and is a member of the exclusive 'Magic Circle', meaning that he can offer an extra perspective on how “the mind plays tricks.”

Paul is also involved with Behaviour Lab, whom he works with by analysing data and evidence provided by longer term portfolio managers, a number of investment biases appear that particularly prevalent according to research done by Behaviour Lab. In particular they see repeated examples of what they call the ‘Dirty Dozen’ most common biases - broken down into the main groupings of pattern recognition, stability, action-oriented and social biases. Major example of each include confirmation bias, the endowment effect, overconfidence and groupthink.

You can find out more about Paul at https://www.paulcraven.com/

Paul’s Twitter Handle is https://twitter.com/CravenPartners

Paul’s excellent and highly entertaining TEDx talk can be viewed here: https://www.youtube.com/watch?v=WdkgBlOt8m0

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