Investor Psychology: How Behaviour Shapes Investment Outcomes

Understanding investor psychology is essential to making better investment decisions. While market movements are influenced by economic events, business performance and global uncertainty, investor emotions such as fear and greed can have a significant impact on investment outcomes.

In this course, Rob Goudie explains why share markets experience volatility, how investor behaviour influences market movements, and why staying calm and focused during uncertain times can make a difference to long-term investing success.

You'll learn about the role of market fundamentals, the impact of media headlines, and why patience, discipline and having a clear investment strategy are important when navigating market corrections and downturns.

This course provides an introduction to investor psychology and highlights why how you behave as an investor can be just as important as what you invest in.

What you'll learn

• The psychology behind investment decisions and how emotions influence behaviour.
• The difference between short-term market movements and long-term investment fundamentals.
• Why share markets are volatile and how global events, uncertainty and investor sentiment affect prices.
• The role of liquidity in share market volatility.
• Understanding market corrections, crashes and why volatility isn't always the same as risk.
• How fear and greed influence investor decisions and can lead to buying high and selling low.
• The impact of media headlines and negative news on investor confidence.
• Why market downturns can present opportunities for patient, long-term investors.
• The importance of investment valuations and why the price you pay matters.
• Why time in the market, patience and disciplined investing can support long-term outcomes.
• Practical ways to manage investor behaviour, including having a plan and using dollar-cost averaging.
• Why successful investing often comes down to staying calm, consistent and focused on the long term.