We Can Learn A Lot From “Hangry” Judges

You've probably felt like this before… Published By Money & Markets, LLC. October 01, 2024 Published By Money & Markets, LLC. October 01, 2024 [Turn Your Images On] [Turn Your Images On] From The Desk of [Adam O'Dell]( Editor, [Money & Markets Daily]( We Can Learn A Lot From “Hangry” Judges Money & Markets Daily, It takes a certain temperament to be a good judge. As investors, we can learn a lot from the way judges approach their daily duties. They’re supposed to be fair and impartial … sober and even-tempered … and emotionally detached. But that doesn’t mean they don’t get hungry and irritable like the rest of us! “Hangry” Judges and Decision Fatigue In 2010, Stanford researchers studied judges and their decisions to grant or deny parole to prisoners appearing before the court. They analyzed over 1,100 individual decisions made over the course of a year. In total, judges approved parole appeals in about one-third of the 1,100 cases studied — in line with known proportions. However, the researchers discovered that the time of day was a significant factor in judges’ decisions. What it boiled down to: Prisoners who appeared before the court early in the day got more favorable parole decisions. Those appearing just before lunch, on the other hand, were more often denied parole. After lunch, the number of paroles granted jumped back up to the more favorable, early morning levels. But throughout the afternoon, the rate of paroles granted again trended down, hitting a low by the end of the day. Here’s the chart — the dotted lines indicate food breaks: [Turn Your Images On] Now, if judges were automatons — unaffected by hunger, fatigue or mood — this chart would not exist. Instead, you’d see one steady rate of favorable parole decisions, regardless of the time of day. But judges aren’t robots. Judges are people. Even though judges are intelligent, well-intentioned and ethical, they still get tired, hungry (even “hangry”) and moody like the rest of us. Those subtle fatigue factors have a dramatic impact on their decisions. There’s even a term for this: decision fatigue. It’s the observation that people tend to make far worse decisions the more decisions they have to make. Decision fatigue affects everyone. It taints decisions we face in all aspects of our daily lives — everything from what to make for dinner to, of course, what to do with our investments. Do I spend or save? Stocks or bonds? Buy-and-hold or buy-and-fold strategy? Growth or value? Nvidia or Amazon? As an investor, every decision you make can be hugely consequential to your investment portfolio and your family’s financial goals. And you’ll be up against decision fatigue every step of the way. Remember, even judges aren’t perfect. So don’t expect yourself to be! But I have a simple solution for you: To avoid decision fatigue, you must reduce the number of decisions you make to a manageable amount. And that’s where systematic investment strategies come into play. --------------------------------------------------------------- [Turn Your Images On]( [$35 Stock to Fuel the AI Market Boom of 2024]( One secretive company’s new technology is poised to disrupt the AI market – a market that is projected to grow from roughly $500 billion to $200 trillion. That’s a surge of 39,900% over the next six years. Today, you can invest in this one-of-a-kind company for just $35 a share. [Click here to see all the details.]( --------------------------------------------------------------- How to Eliminate Decision Fatigue in Your Investing Systematic, or “rules-based,” investment strategies minimize your role in the daily decision-making process, thus minimizing the number of opportunities you have to make a subpar decision. I didn’t even know decision fatigue was a thing until I heard that “hangry” judges story myself a few years ago. But I get it. While I strive to be cool and analytical, I’m human. I get as decision-fatigued as the next guy! My evolution as a trader has been one big attempt to minimize decision fatigue. After leaving the Fortune 500 financial planning firm I worked for throughout the 2008 financial crisis, I took a job with a proprietary currency trading hedge fund. This was not a buy-and-hold firm. We actively traded the world’s most volatile markets. We were going long and short — and making a lot of money doing it. I did well there, routinely earning “top trader” status. However, I still didn’t have complete confidence in my strategies. Why? Because I didn’t have my systems nailed down just yet. I was making buy-and-sell decisions based on the news of the day and my subjective interpretation of how the market would react to that news. Essentially, I was making decisions on my gut. And that made me more uncomfortable as I continued to work there. So my next move was to a firm that focused on systematic investing. I worked as a client consultant for rules-based, or systematic, investors, and I learned what systematic investing is all about. It boils down to two simple principles… - Systematic investing ensures your decision-making is driven by objective, real-world data, not the whims of the market and your gut feeling on any given day. - A systematic approach ensures your investment decisions are driven only by the variables that actually matter and not by the meaningless “noise” that bombards most investors every day. You see, the goal of systematic investing isn’t just to feel less stress in your decision-making. It’s to make money … as much as you can … without second guessing or overreacting to the market in a way that loses you money on a consistent basis. In short, systematic investing is all about making more money with less stress! This gets to the core of what I do in every one of my premium stock services. Just as an example, after weeks of research, I use my systems to find my highest-conviction recommendations for my Green Zone Fortunes subscribers each month. These stocks are within mega trends with staying power, such as artificial intelligence, energy, real estate and homebuilding. To join me and cut down on the decisions you have to make, [click here for details](. To good profits, [Adam O'Dell]( Editor, [Money & Markets Daily]( --------------------------------------------------------------- Check Out More From Money & Markets Daily: - [COUNTDOWN TO A CRIPPLING PORT STRIKE?]( - [ONE STOCK’S 2024 TURNAROUND (ANOTHER IS STILL A BUST)]( - [HOW ADAM'S HOTLIST FOUND A 220% MARKET-CRUSHING STOCK]( --------------------------------------------------------------- [Turn Your Images On]( Privacy Policy The Money & Markets, 702 Cathedral Street, Baltimore, MD 21201. 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It may contain errors and you should not base investment decisions solely on what you read here. It's your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments carry large potential rewards but also large potential risk. Don't trade in these markets with money you can't afford to lose. Money & Markets permits editors of a publication to recommend a security to subscribers that they own themselves. However, in no circumstance may an editor sell a security before our subscribers have a fair opportunity to exit. Any exit after a buy recommendation is made and prior to issuing a sell notification is forbidden. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication. (c) 2024 Money & Markets, LLC. All Rights Reserved. Protected by copyright laws of the United States and treaties. This Newsletter may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Money & Markets. 702 Cathedral Street, Baltimore, MD 21201. (TEL: 800-684-8471) Remove your email from this list: [Click here to Unsubscribe](