Talking with Traders

The anchoring bias is a fascinating one, and part of the human psyche that is sometimes quite hard to understand. We get ourselves anchored to pieces of information that may or may not have any bearing on the facts and the decision we need to make.

https://nudgingfinancialbehaviour.podbean.com/e/anchoring-bias-episode-9-season-1/

To help unpack anchoring bias and how we can try to be aware of it in our lives, we talk to Louise Bedford. Louise is a best-selling author from Australia, a trading mentor and she hosts her own podcast – Talking Trading. It’s safe to say that Louise knows what she’s talking about on the topic.

Useful links:

More about our guest Louise Bedford: https://www.tradinggame.com.au/about-us/louise-bedford/

The study done on anchoring: https://www.jstor.org/stable/10.1086/425103?seq=1#metadata_info_tab_contents

You can also read more on my blog: https://www.nudgingfinancialbehaviour.com/the-anchored-trader/

Or watch to the video version of this podcast episode: https://youtu.be/P0nRZlu1sFA

Special thanks to everyone who has helped put this series together:    

Our sponsors: IG Markets South Africa    

Producer: Faeron Wheeler of F Creations    

Music by: Neil Leachman    

Sound recording and mixing: Giovanni Serci of Soundcast Studios    

Video and editing: Kyle Wesson    

Hair and makeup: Ida Webster    

Set styling: Michelle Murray of Interiors Etc.  

Voice over: Sizo Mphti Nudging financial Behaviour 9 · Facebook · IG

Welcome to our discussion on the framing effect. This bias is all about giving context to information – something that we require in order to understand the information we’re receiving. The problem with framing is that it can be done maliciously to make a decision that’s not in your favour. If you change the context or the frame surrounding a piece of information, you could easily make a different decision.

Our guest for episode 8 is Louis van der Merwe – a certified financial planner and host of his own podcast, Ensombl Advice South Africa. We chat particularly about narrow framing in investments and how important it is to look at your portfolio as a whole rather than each individual share or investment.

https://nudgingfinancialbehaviour.podbean.com/e/the-framing-effect-episode-8-season-1/

Useful links:

More about Louis van der Merwe and his podcast Ensombl Advice South Africa: https://linktr.ee/louisvdmerwe

The full Daniel Kahneman interview: https://www.youtube.com/watch?v=Kpev-Lb0EAg

More on creating frameworks for money decisions: https://www.startribune.com/to-make-better-money-decisions-try-framing-the-issues/307168111/?refresh=true

You can also read more on my blog: https://www.nudgingfinancialbehaviour.com/narrow-framing/

Or watch to the video version of this podcast episode: https://youtu.be/RhPYfYHsAmM 

Special thanks to everyone who has helped put this series together:    

Our sponsors: IG Markets South Africa    

Producer: Faeron Wheeler of F Creations    

Music by: Neil Leachman    

Sound recording and mixing: Giovanni Serci of Soundcast Studios    

Video and editing: Kyle Wesson    

Hair and makeup: Ida Webster    

Set styling: Michelle Murray of Interiors Etc.  

Voice over: Sizo Mphti   Nudging financial Behaviour 8 · Facebook · IG

Confirmation bias plays a massive part in the way we all think and make decisions. In this episode, we’re delving into what this bias actually is and how to recognise it in ourselves. It’s so important to be able to spot confirmation bias at play because we can miss a lot when we aren’t aware of it.

https://nudgingfinancialbehaviour.podbean.com/e/confirmation-bias-episode-7-season-1/

To help us get a better understanding of how we all fall prey to confirmation bias, we chat to Rachel Alberts – digital media lead at a top South African retailer. The social media echo chamber effect is a big talking point and shows us just how easy it is to fall into a feedback loop that continually confirms your beliefs. Rachel also gives us some great tips on how to break out of the echo chamber.

Useful links:

A link to the graph mentioned about cognitive dissonance: https://www.nudgingfinancialbehaviour.com/the-social-media-echo-chamber/#CD

Useful tips for beating confirmation bias: https://www.youtube.com/watch?v=xwZj_72Mawk

More on the social media echo chamber effect: https://www.wired.com/story/facebook-twitter-echo-chamber-confirmation-bias/

You can also read more on my blog: https://www.nudgingfinancialbehaviour.com/the-social-media-echo-chamber/   

Or watch to the video version of this podcast episode: https://youtu.be/g6PTSP1LCRk

Special thanks to everyone who has helped put this series together:    

Our sponsors: IG Markets South Africa    

Producer: Faeron Wheeler of F Creations

Music by: Neil Leachman

Sound recording and mixing: Giovanni Serci of Soundcast Studios    

Video and editing: Kyle Wesson

Hair and makeup: Ida Webster 

Set styling: Michelle Murray of Interiors Etc.  

Voice over: Sizo Mphti   Nudging financial Behaviour 7 · Facebook · IG

Overconfidence – that feeling that you can do no wrong and your decisions will always work out for you. This is what we’re unpacking in this episode of the Nudging Financial Behaviour podcast. Overconfidence bias is a tricky one because there can be a fine line between confidence and overconfidence. The problem is, one is good for you and the other can be very harmful.

https://nudgingfinancialbehaviour.podbean.com/e/overconfidence-bias-episode-6-season-1/

Our guest in this episode is Professor Philip Fernbach – academic and cognitive scientist at the Leeds School of Business in the University of Colorado, Boulder. Philip is also the co-director of the Center for Research on Consumer Financial Decision Making. He gives us some great insights into overconfidence and how to combat this bias.

Useful links:

An article on Professor Philip Fernbach’s overconfidence study – https://www.colorado.edu/today/2021/09/07/overconfidence-bad-your-wealth

More from Dick Fuld’s testimony on the Lehman Brothers collapse - https://www.youtube.com/watch?v=2yCnvxsWfDY

More on that study about lottery tickets - https://www.cambridge.org/core/journals/judgment-and-decision-making/article/representativeness-heuristic-and-the-choice-of-lottery-tickets-a-field-experiment/63294E0987CFDF01F565CEDC716B21AC

You can also read more on my blog: https://www.nudgingfinancialbehaviour.com/the-overconfident-investor/

Or watch to the video version of this podcast episode: https://youtu.be/K_oyZHHDoBo

Special thanks to everyone who has helped put this series together:    

Our sponsors: IG Markets South Africa    

Producer: Faeron Wheeler of F Creations    

Music by: Neil Leachman    

Sound recording and mixing: Giovanni Serci of Soundcast Studios

Video and editing: Kyle Wesson    

Hair and makeup: Ida Webster

Set styling: Michelle Murray of Interiors Etc.

Voice over: Sizo Mphti Nudging financial Behaviour 6 · Facebook · IG

At last! We’re beginning our discussion on the actual biases that impact our behaviour and decision-making abilities. In this episode, we delve into what biases actually are and explore some psychology around how our brains process information.

We thought it would be a good idea to start this discussion around biases with explaining Daniel Kahneman’s concept of System 1 and System 2 thinking. To help with unpacking this, we brought in Dr Daniel Crosby, a psychologist and New York Times best-selling author, as our guest. He’s also the host of his own podcast, called Standard Deviations.

https://nudgingfinancialbehaviour.podbean.com/e/system-1-and-system-2-episode-5-season-1/

Useful links:

Buy the book - Thinking, Fast and Slow by Daniel Kahneman:

https://www.takealot.com/thinking-fast-and-slow/PLID19456785

https://www.amazon.com/Thinking-Fast-Slow-Daniel-Kahneman/dp/0374533555

A great breakdown of the biases that I refer to regularly when lecturing: https://www.youtube.com/watch?v=uqXVAo7dVRU

A little more about Dr Daniel Crosby:

https://www.standarddeviationspod.com/

https://www.amazon.com/stores/Daniel-Crosby/author/B00O72MW1W?ref=ap_rdr&store_ref=ap_rdr&isDramIntegrated=true&shoppingPortalEnabled=true

You can also read more on my blog: https://www.nudgingfinancialbehaviour.com/system-1-and-system-2/ 

Or watch to the video version of this podcast episode: https://youtu.be/9qa45_juNS4

Special thanks to everyone who has helped put this series together:   

Our sponsors: IG Markets South Africa   

Producer: Faeron Wheeler of F Creations   

Music by: Neil Leachman   

Sound recording and mixing: Giovanni Serci of Soundcast Studios   

Video and editing: Kyle Wesson

Hair and makeup: Ida Webster 

Set styling: Michelle Murray of Interiors Etc.

Voice over: Sizo Mphti  Nudging financial Behaviour 5 · Facebook · IG

We’re wrapping up our discussion on the common pitfalls that land so many of us in financial trouble. In this episode, we look briefly at irrational behaviour – there’ll be a lot more on this in the rest of the season. Then, we unpack risk aversion, lack of motivation and poor planning.

https://nudgingfinancialbehaviour.podbean.com/e/have-a-plan-episode-4-season-1/

To help with the unpacking, our guest for the episode is Dirk Groeneveld, a certified financial planner with Client Care. It’s great to get insights from someone who deals with everyday people every day – he really understands how our personalities and our personal history with money can impact how we make decisions about our finances.

You can also read more on my blog: https://www.nudgingfinancialbehaviour.com/failing-to-plan-is-planning-to-fail/

Or watch to the video version of this podcast episode: https://youtu.be/721q25ICeak

Special thanks to everyone who has helped put this series together:  

Our sponsors: IG Markets South Africa  

Producer: Faeron Wheeler of F Creations  

Music by: Neil Leachman  

Sound recording and mixing: Giovanni Serci of Soundcast Studios  

Video and editing: Kyle Wesson 

Hair and makeup: Ida Webster 

Set styling: Michelle Murray of Interiors Etc.

Voice over: Sizo Mphti Nudging financial Behaviour 4 · Facebook · IG

We take a look at three more financial pitfalls in this episode. They are overconsumption or lifestyle creep, debt and insufficient savings. These three often go hand in hand – you get into debt because you’re trying to cover your lifestyle creep, and then you’re too busy focusing on paying off that debt rather than looking at your savings.

https://nudgingfinancialbehaviour.podbean.com/e/managing-debt-episode-3-season-1/

Debt spirals can be very scary, and it can be incredibly hard to see your way out of them. That’s why we got Nadia de Weerdt, a registered debt counsellor and Western Cape representative for DCASA, to chat to us about how to handle debt. She also gives some great tips on how to avoid getting into bad debt.

Useful links:

The Debt Counsellors Association of South Africa (DCASA) - https://www.dcasa.co.za/

The Financial Sector Conduct Authority (FSCA) - www.FSCA.co.za

You can also read more on my blog: https://www.nudgingfinancialbehaviour.com/how-to-manage-your-debt/

Or watch to the video version of this podcast episode: https://youtu.be/5MjfPT8tM8c

Special thanks to everyone who has helped put this series together: 

Our sponsors: IG Markets South Africa 

Producer: Faeron Wheeler of F Creations 

Music by: Neil Leachman 

Sound recording and mixing: Giovanni Serci of Soundcast Studios 

Video and editing: Kyle Wesson 

Hair and makeup: Ida Webster 

Set styling: Michelle Murray of Interiors Etc. 

Voice over: Sizo Mphti Nudging financial Behaviour 3 · Facebook · IG

In this episode, we start our discussion on the most common pitfalls that we all encounter when it comes to managing our money. I’ve dedicated the entire episode to one of the biggest pitfalls there is – financial illiteracy.

https://nudgingfinancialbehaviour.podbean.com/e/financial-literacy-episode-2-season-1/

To help you get to grips with the topic, I chat to certified financial planner Wynand Gouws. He works for the award-winning Gradidge Mahura Investments. It’s great to get his perspective on just how pervasive financial illiteracy really is. He works with clients from a wide range of different backgrounds and education levels – and many of them struggle with understanding the basic concepts of financial literacy.

If you’re interested in reading more about the studies and reports I mention, you can find them here: http://www.brightrock.co.za/content/downloads/fsbfinancialliteracyinsa.pdf

https://businesstech.co.za/news/lifestyle/665081/price-shock-for-south-africa-as-food-inflation-hits-highest-point-in-14-years/

If you’d like to get your hands on Wynand Gouws’ new book To 100 & Beyond, you can find where to buy it here: https://www.penguinrandomhouse.co.za/book/100-beyond-how-make-your-money-last-long-you-do/9781776390267

You can also read more on my blog: https://www.nudgingfinancialbehaviour.com/inflation-and-compound-interest/

Or watch to the video version of this podcast: https://www.youtube.com/@NudgingFinancialBehaviour

Special thanks to everyone who has helped put this series together:

Our sponsors: IG Markets South Africa

Producer: Faeron Wheeler of F Creations

Music by: Neil Leachman

Sound recording and mixing: Giovanni Serci of Soundcast Studios

Video and editing: Kyle Wesson

Hair and makeup: Ida Webster

Set styling: Michelle Murray of Interiors Etc.

Voice over: Sizo Mphti Nudging financial Behaviour 2 · Facebook · IG

In this podcast, you’ll learn all about what really impacts the way we make decisions – in particular, decisions about our finances. It’s a deep dive into behavioural finance and how this academic field of study can be applied to everyday money decisions.

https://nudgingfinancialbehaviour.podbean.com/e/welcome-to-the-nudging-financial-behaviour-podcast/

In episode one, we’re focusing on getting to know each other and the subject matter. You’ll learn some of my background as an academic and professor at the University of Cape Town. I also run my own company called, you guessed it, Nudging Financial Behaviour.

As part of the getting to know you phase, I speak to Rob van Eyden in this episode. Rob is the CEO of IG Markets South Africa, who is also the sponsor for this podcast. I also hit the streets to find out what people know about behavioural biases.

You can also read more on my blog: https://www.nudgingfinancialbehaviour.com/behavioural-finance-podcast/

Or watch to the video version of this podcast: https://www.youtube.com/@NudgingFinancialBehaviour

Special thanks to everyone who has helped put this series together:

Our sponsors: IG Markets South Africa

Producer: Faeron Wheeler of F Creations

Music by: Neil Leachman

Sound recording and mixing: Giovanni Serci of Soundcast Studios

Video and editing: Kyle Wesson

Hair and makeup: Ida Webster

Set styling: Michelle Murray of Interiors Etc.

Voice over: Sizo Mphti Nudging financial Behaviour 1 · Facebook · IG

We take a look at three more financial pitfalls in this episode. They are overconsumption or lifestyle creep, debt and insufficient savings. These three often go hand in hand – you get into debt because you’re trying to cover your lifestyle creep, and then you’re too busy focusing on paying off that debt rather than looking at your savings.

Debt spirals can be very scary, and it can be incredibly hard to see your way out of them. That’s why we got Nadia de Weerdt, a registered debt counsellor and Western Cape representative for DCASA, to chat to us about how to handle debt. She also gives some great tips on how to avoid getting into bad debt.

Useful links:

The Debt Counsellors Association of South Africa (DCASA) - https://www.dcasa.co.za/

The Financial Sector Conduct Authority (FSCA) - www.FSCA.co.za

You can also read more on my blog: https://www.nudgingfinancialbehaviour.com/how-to-manage-your-debt/

Or watch to the video version of this podcast episode: https://youtu.be/5MjfPT8tM8c

Special thanks to everyone who has helped put this series together: 

Our sponsors: IG Markets South Africa 

Producer: Faeron Wheeler of F Creations 

Music by: Neil Leachman 

Sound recording and mixing: Giovanni Serci of Soundcast Studios 

Video and editing: Kyle Wesson 

Hair and makeup: Ida Webster 

Set styling: Michelle Murray of Interiors Etc. 

Voice over: Sizo Mphti