Buy Low. Sell High. Why is it so Difficult?

Course Description

If there’s one piece of advice you’ve heard your whole life, it’s “Buy low; sell high.” But who hasn’t seen a client panic and stop contributing to her 401(k) right at the moment when fund prices are lowest?

Somehow we’re wired to buy more shoes and more honey crisp apples when they go on sale, but as soon as there’s a dip in stock prices a lot of people rush to sell.

For traders and market participants, “buy low and sell high” is challenging to implement in the short run. It’s easy to understand the highs or lows in retrospect, but at the moment, when the near future is uncertain, it becomes overwhelmingly difficult. This idea goes against our psychological biases and instincts. When stocks fall, we fear the loss of money, and when stocks rise, we fear the loss of opportunity. 

In this CPE Finance Webinar, we’ll look at some of the history and psychology behind human reactions to stock market volatility and consider strategies for avoiding overreactions and keeping clients grounded when their instincts work against their best interests.

Learning Objectives

• To review research studies from economics and psychology on factors like “recency bias” and “prospect theory” to help understand the emotions triggered by market volatility. 
• To analyze stock market behavior over various time frames and gain perspective on reactive buying and selling vs. long-term strategies.
• To inspect the language we use to describe changes in stock prices and how that can affect feelings about the market.
• To analyze the psychology behind human reactions to stock market volatility.

Recommended For

• This CPE webinar is recommended for CPA, CVA, CBA/MCBA, ABV, CMA, CFA, CIPM, PFS, FPAC, ChFCA, CASL, ChSNC, RICP, WMCP, FSCP, CGFM, CFIRS, CWS, and other finance professionals who want to understand the psychology behind human reactions to stock market volatility and consider strategies for avoiding overreactions.
  

Who Should Attend?

Webinar Qualifies For

• 1 General Credit for Accountant/Bookeeper
• 1 CPD Credit of Finance for Accredited in Business Valuation (ABV)
• 1 CPD Credit of Finance for Chartered Professional Accountant (CPA Canada)
• 1 CPE Credit for Certified Government Financial Manager (CGFM)
• 1 CPE Credit of Corporate Finance for Certified Management Accountants (CMA)
• 1 CPE Credit of Finance for Certified Public Accountants (CPA-US)
• 1 CPE Credit of Finance for Certified Valuation Analyst (CVA)
• 1 CPD Credit for CA - ICAEW
• 1 PL Credit of Investment Decision Making for Chartered Financial Analyst (CFA)
• 1 CPD Credit of Investment Planning for Personal Financial Specialist (PFS)
• 1 CPE Credit for Chartered Financial Consultant (ChFC)
• 1 CPD Credit for Chartered Certified Accountants (ACCA)
• 1 CPE Credit for Financial Services Certified Professional (FSCP)
• 1 CPE Credit for Chartered Advisor in Senior Living (CASL)
• 1 CPE Credit for Chartered Special Needs Consultant (ChSNC)
• 1 CPE Credit for Retirement Income Certified Professional (RICP)
• 1 CPE Credit for Wealth Management Certified Professional (WMCP)
• 1 PL Credit for Certificate In Investment Performance Measurement (CIPM)
• 1 CPE Credit of Finance for Certified Business Appraiser/Master Certified Business Appraiser (CBA/MCBA)
• 1 CRE Credit for Certified Corporate FP&A Professional (FPAC)
• 1 CPD Credit for Chartered Accountants - Ireland (CAI)
• 1 CE Credit for Certified Financial Planner (US) (Approval No. 304017)
• 1 CPD Credit for Chartered Accountants - Scotland
• 1 CPD Credit for CPA - Ireland
• 1 CE Credit for Certified Fiduciary & Investment Risk Specialist (CFIRS)
• 1 CE Credit for Certified Wealth Strategist (CWS)

FAQs content