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Mindtraps: Unlocking the Key to Investment Success
you are biologically "wired" to lose a great deal of money in your lifetime. Most people will ignore this warning and self destruct, yet the solutions to "secure" investing are in this book.
- GenresFinance
260 pages, Hardcover
First published April 1, 1988
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Displaying 1 - 2 of 2 reviews
November 15, 2017
IT IS IMPORTANT TO REMEMBER THAT WE ALWAYS HAVE A CHOICE IN THE STOCK-MARKET. THE DIFFICULTY COMES IN BEING WILLING TO USE OUR FREEDOM TO CHOOSE AND NOT BE TRAPPED BY COMMITMENTS.
Change is always discomforting. It requires a willingness to experience unpleasant emotions, a commitment to overcome well established habits and having new and well-defined alternatives to use instead.
Its our attitude to events, rather than events themselves, that's important. Our attitude accounts for the emotions we feel.
Dont have one-track thinking - dont have just one investment rule.
Fear blinds us to opportunity, greed blinds us to danger.
Strong feelings - be they greed, fear or passion, blind us from seeing and reacting to the total picture.
Responding to expectations about the future is in sharp contrast to how people function in most other aspects of life - its neurotic to always anticipate the future and not live in the present.
Years of clinical experience has shown that when things get said out loud (includes writing them down) they dont seem as bad or feel as terrible as when they are rattling around in our minds.
Greed traps us in the market through; our constant desire for more, our unbridled desire for riches, our envy of the success of others, or our expectation of unlimited success.
Evaluating the facts forces you to respond rationally rather than emotionally.
Fear of success - success makes her feel anxious because she expects unpleasant consequences to result from it.
Matters are rarely life or death these days, so using 'have to' puts on unnecessary pressure.
We all know that we can forget things but we assume what we recall is accurate.
Dont let what you want to happen influence your judgement.
Peoples desire for certainty causes them to undervalue moderate to high probabilities when investing and therefore miss out on higher returns.
People are poor judges of unlikely events. Any chance is perceived as some chance, so people tend to overvalue low probability events.
People tend to lump losses together and suffer one big hit rather than be tortured by having them strung out separately (eg growth vs value investing).
Change is always discomforting. It requires a willingness to experience unpleasant emotions, a commitment to overcome well established habits and having new and well-defined alternatives to use instead.
Its our attitude to events, rather than events themselves, that's important. Our attitude accounts for the emotions we feel.
Dont have one-track thinking - dont have just one investment rule.
Fear blinds us to opportunity, greed blinds us to danger.
Strong feelings - be they greed, fear or passion, blind us from seeing and reacting to the total picture.
Responding to expectations about the future is in sharp contrast to how people function in most other aspects of life - its neurotic to always anticipate the future and not live in the present.
Years of clinical experience has shown that when things get said out loud (includes writing them down) they dont seem as bad or feel as terrible as when they are rattling around in our minds.
Greed traps us in the market through; our constant desire for more, our unbridled desire for riches, our envy of the success of others, or our expectation of unlimited success.
Evaluating the facts forces you to respond rationally rather than emotionally.
Fear of success - success makes her feel anxious because she expects unpleasant consequences to result from it.
Matters are rarely life or death these days, so using 'have to' puts on unnecessary pressure.
We all know that we can forget things but we assume what we recall is accurate.
Dont let what you want to happen influence your judgement.
Peoples desire for certainty causes them to undervalue moderate to high probabilities when investing and therefore miss out on higher returns.
People are poor judges of unlikely events. Any chance is perceived as some chance, so people tend to overvalue low probability events.
People tend to lump losses together and suffer one big hit rather than be tortured by having them strung out separately (eg growth vs value investing).
December 22, 2019
A good recollection of biases but I don't know what an investor can do with them.
Displaying 1 - 2 of 2 reviews