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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 691.72-0.1%Jan 16 4:00 PM EST

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To: Gary Wisdom who wrote (30233)10/17/1999 3:45:00 PM
From: Jacob Snyder  Read Replies (1) of 99985
 
Gary: great article!

re: "They (the men) made calculations, they appeared worried, but they said very little." They were busy figuring out how they could buy the dip (using margin money, of course), and make up their losses quickly.

There is some very robust data on gender differences in investor psychology:

1. There is a systematic error in investor decision-making: we are overconfident. That is, we think we can predict the future with greater precision than is possible.

2. Women are less self-confident than men. Therefore,

3. Women make fewer errors due to overconfidence than men. And,

4. Women are better long-term investors than men.

The market did not regain its 1929 highs until 1954, I think. Getting out at the bottom in 1929 incurred huge losses. But buying the dips after the first major decline in 1929 was an even worse strategy.
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