"Most people learn investing backward: binge content, memorise terms, then buy assets without system, so first real market stress becomes exam. Better approach is practicing decision-making early, building systems that reduce mistakes, and only then adding tactics. Why practice before theory works Reading feels productive because it's easy but doesn't prove skill. Dunlosky reviewed major learning techniques and concluded that practice testing and distributed practice have high utility because they improve performance across many types of material and learners including in educational settings."
"The most effective methods for how to learn about investing prioritise active practice over passive reading because financial competence requires execution, not just memorisation. In a market environment, an investor does not need to recall trivia; they need to execute disciplined decisions correctly under conditions of extreme uncertainty. The testing effect provides concrete illustration. Roediger and Karpicke found that after one-week delay, students who learned via retrieval practice recalled about 56% of material versus about 42% for those who repeatedly studied text."
Most people approach investing by consuming content and memorising terms before constructing a system, which leaves the first real market stress as an exam. Practising decision-making early builds systems that reduce mistakes and creates muscle memory for high-stress execution. Learning research finds practice testing and distributed practice improve performance across learners and materials. Active practice matters because financial competence requires disciplined execution under extreme uncertainty rather than trivia recall. The testing effect shows retrieval practice yields higher retention (about 56% versus 42% after one week). Practice-first learning integrates theory into actual decisions and deepens understanding.
Read at London Business News | Londonlovesbusiness.com
Unable to calculate read time
Collection
[
|
...
]