About this episode
In this episode, Tom and Don explore retail investors' behaviors influenced by users of platforms like Wall Street Bets, highlighting the risks faced by inexperienced traders in high-stakes options trading. We discuss poor investment habits driven by overconfidence, the gambler's fallacy, and behavioral finance pitfalls such as confirmation bias. We reiterate the importance of diversification and long-term strategies over trend-following. Then, we address listener questions on retirement planning and fiduciary advice. 3:08 The Gambler's Fallacy 7:01 Confirmation Bias in Investing 13:27 Understanding Risk in Investing 16:11 Listener Questions and Answers 21:02 Retirement Planning Strategies Learn more about your ad choices. Visit megaphone.fm/adchoices