22 Tips about Psychology

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Many people suffer from confirmation bias. That is, they seek out information that confirms their viewpoint. This is also true of most investors....
A wise man should have money in his head, but not in his heart.
Tags: money, psychology
Much of financial theory is based upon the idea that individuals act rationally and consider all available information in their decision-making...
The stock market is the story of cycles and of the human behavior that is responsible for overreactions in both directions. Success in the market...
What investors should really ask themselves when contemplating selling a stock (or mutual fund) is, "What are the consequences of repeating the same...
"I can calculate the motions of the heavenly bodies, but not the madness of people." Sir Isaac Newton, who sold out profitably during the South Sea...
Most people tend to underestimate the role of chance in events and thus will erroneously attribute their skill as the defining factor for achieving...
Successful investors tend to be unemotional, allowing the greed of others to play into their hands. By having confidence in their own analysis and...
Our brains are in sync with the speed at which the market is moving and totally out of sync with the speed at which a business is moving. It seems...
Mental accounting occurs when investors mentally compartmentalize assets such as stocks, bonds, real estate or accounts. This causes investors to lose...
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