Lie-flat beds in business class is how KLM is competing with the Gulf airlines. Courtesy KLM
Lie-flat beds in business class is how KLM is competing with the Gulf airlines. Courtesy KLM

Flat out for comfort



One reason why the free market is vaunted as the most efficient economic system is that it rewards those who find a way to do their job better. Those who fly regularly know this all too well, with the three main Gulf airlines having opted to raise the bar when it comes to service and levels of comfort.

As frequent flyers choose Emirates, Etihad Airways and Qatar Airways, the reaction of other carriers has been revealing. As we reported yesterday, KLM has begun to renovate its fleet so that by the end of the year, every seat in business class to the UAE will offer lie-flat beds. Cathay Pacific and many other European and Asian airlines are in the process of similar upgrades.

Compare that to the main American airlines, which have reacted by lobbying Congress to pass legislation that, in effect, amounts to protection – the antithesis of how the market is supposed to work. Passengers have been the main beneficiaries of the Gulf carriers’ raising standards. Other airlines should raise their own.

How to keep control of your emotions

If your investment decisions are being dictated by emotions such as fear, greed, hope, frustration and boredom, it is time for a rethink, Chris Beauchamp, chief market analyst at online trading platform IG, says.

Greed

Greedy investors trade beyond their means, open more positions than usual or hold on to positions too long to chase an even greater gain. “All too often, they incur a heavy loss and may even wipe out the profit already made.

Tip: Ignore the short-term hype, noise and froth and invest for the long-term plan, based on sound fundamentals.

Fear

The risk of making a loss can cloud decision-making. “This can cause you to close out a position too early, or miss out on a profit by being too afraid to open a trade,” he says.

Tip: Start with a plan, and stick to it. For added security, consider placing stops to reduce any losses and limits to lock in profits.

Hope

While all traders need hope to start trading, excessive optimism can backfire. Too many traders hold on to a losing trade because they believe that it will reverse its trend and become profitable.

Tip: Set realistic goals. Be happy with what you have earned, rather than frustrated by what you could have earned.

Frustration

Traders can get annoyed when the markets have behaved in unexpected ways and generates losses or fails to deliver anticipated gains.

Tip: Accept in advance that asset price movements are completely unpredictable and you will suffer losses at some point. These can be managed, say, by attaching stops and limits to your trades.

Boredom

Too many investors buy and sell because they want something to do. They are trading as entertainment, rather than in the hope of making money. As well as making bad decisions, the extra dealing charges eat into returns.

Tip: Open an online demo account and get your thrills without risking real money.

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