How Do Evidence-Based (EB) &

Traditional Active (TA) Investors Differ?

THEY SEE TA investors believe they can
THE successfully predict when and how
FUTURE to trade on breaking news.
DIFFERENTLY

THEY TA investors feel a sense of
WORK ON urgency to make the “right” calls
DIFFERENT to beat the market.
TIMELINES

THEY ARE
TA investors act on “expert” opinions
GUIDED BY
DIFFERENT (which are vulnerable to biases, blind
DETERMINANTS spots and changeable conditions).

THEY DEFINE TA investors define success as
“SUCCESS”
outperforming others or making a
DIFFERENTLY
lot of money.

TA investors don’t distinguish between
THEY USE
market risks (factors that are expected to
RISK
DIFFERENTLY yield extra returns) and concentrated risks
(which just add more risk).

THEY
CONSIDER TA investors focus on cleverly
COSTS timed trades over the costs,
DIFFERENTLY commissions and taxes they incur.

Bottom Line
TA investors try to beat the
EVIDENCE-BASED market through clever
INVESTORS APPROACH stock-picking and market-timing.
INVESTING
DIFFERENTLY

© Mineral Interactive, LLC, and Wendy J. Cook Communications, LLC