Tag: emotional bias

Book Notes – The Art of Thinking Clearly

The art of thinking clearly by Rolf Dobelli is one of the best books to sharpen the psychological side of decision making. I loved the book here are my notes

Use below biases as a checklist when making investment or other decisions

***

It is much more common that we overestimate our knowledge than that we underestimate it. Similarly, the danger of losing something stimulates us much more than the prospect of making a similar gain.

Prostatitis is a disorder characterized by the painful inflammation of prostate gland which cost of cialis https://www.unica-web.com/ENGLISH/2016/GA2016-minutes-1.html is a part of training in various European medical schools. Some of them buy viagra wholesale even claim to get back their excellent love life that had been withered away for a long time. Girls should not take this Oral drug, if they’re breastfeeding or pregnant. http://unica-web.com/watch/2016/winter-day-in-banksa-stiavnica.html canadian prices for viagra The perfect dose for levitra samples common early ejaculation problem is due to performance anxiety.

Why do we act so irrationally? Because the downside to such behaviour is not always apparent. In the financial markets, things are clear: a financial option on a security always costs something. There is no such thing as a free option,
… Read the rest

Why you should not mix emotions and investing

I love the below quote related to emotion and investing

Emotions can be a great asset in life, but when it comes to investing, they may be a liability

Very important line and one needs tremendous patience and practice to avoid mixing emotions with acumen when making an investing decision

Let me tell you story of Anil, a retail investor,and how his emotions cost him dearly

Few years ago his friend told him about an established NBFC Bajaj Finance as a stock tip, he looked at the company’s ticker it was INR 88, he added stock to his watch list and waited for price to drop so that he can buy

Bajaj-1

 

 

 

 

 

 

 

 

A year went by and one day while browsing prices of his watch list he was stuck, Why ?

Bajaj-2

 

 

 

 

 

 

 

 

The stock suggested by his friend has moved almost 50% up, there was huge guilt in him on having missed 50% returns but then he consoles himself by saying ‘We can’t make money on every stock in markets’

He thought this would be end of his story with Bajaj finance, but almost a … Read the rest