Want to be a better investor? It’s (almost) all in the mind.

Psychology has always intrigued mankind, not only because of its complexity but also its effect on our daily lives and the world as a whole. But long before behavioural finance became a fancy term in the worlds of academia and finance, economists and fund managers Bailard, Biehl and Kaiser proposed their own ‘five-way model’ in 1986, defining distinct investor profiles based on their level of confidence and their actions. Straight arrow: The most balanced of them all, this investor is neither reckless nor slow in making decisions.His confidence level is also moderate and not on the extreme side. According to me, every investor should look at the following aspects: Decision-making: Probably one of the most underrated traits of successful people, a moderate pace and holistic method of decision-making helps us to not only avoid pitfalls but also ensure our decisions are in sync with our risk profile and financial objectives. Probably one of the most underrated traits of successful people, a moderate pace and holistic method of decision-making helps us to not only avoid pitfalls but also ensure our decisions are in sync with our risk profile and financial objectives.