Misplaced Confidence

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