The 'instinct test' for smart investing

Many investors buy stocks on the basis of a hunch. But relying on gut instinct is a terrible way to invest, says Bengt Saelensminde. Here, he explains a technique to help you assess your instincts and make rational buying decisions.

When was the last time you bought a stock on the strength of a hunch?

We all do it: you get excited about a story and, although you have a few nagging doubts, your instincts tell you to just go with it.

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No bid, share price fall below pre-bid10%35p3.5p
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Bengt graduated from Reading University in 1994 and followed up with a master's degree in business economics.

 

He started stock market investing at the age of 13, and this eventually led to a job in the City of London in 1995. He started on a bond desk at Cantor Fitzgerald and ended up running a desk at stockbroker's Cazenove.

 

Bengt left the City in 2000 to start up his own import and beauty products business which he still runs today.