The Teachings of Daniel Kahneman, and Cognitive Biases in Investing and Trading

Dimitrios Gourtzilidis
7 min readSep 1, 2023

When one doesn’t follow the systematic approach but instead focuses on manual trading and investing, then his or her psychology, and way of thinking play a vital role in his or her results.

In this article, the main focus will be on cognitive biases.

Photo by Jr Korpa on Unsplash

Daniel Kahneman

Daniel Kahneman was born in 1934 in Tel Aviv. During his birth, there was no Israeli state; instead, the area had the name “Mandatory Palestine”, which was a region set by the League of Nations, after the fall of the Ottoman Empire.

His parents, though, were living in Paris, France, where Kahneman spent his childhood years. He later received his Ph.D. in psychology from the Hebrew University of Jerusalem in 1961.

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He was the first who combined psychology and economics and thus creating the field of behavioral economics, which studies how people make economic decisions.

In 2002, Kahneman was awarded the Nobel Memorial Prize in Economic Sciences, along with his colleague Vernon Smith, for his work on behavioral economics. He has also received…