Investing In Body Building Can Literally Leads You To A Big Business, Famous Celebrity, Famous Coach…….
7 Ways Your Brain Makes You A Terrible Investor ….
It doesn’t matter how rational you think you are.
You have a brain, and the chemicals in your brain often force you to make irrational decisions. This affects everything from decisions you make in your love life to trades you make in your investment portfolio.
Reads more:16 brilliant quotes from Charlie Munger, Warren Buffett’s right-hand man
Here’s a list of the 7 common behavioral biases that drive investor decisions. Read through them, and you’ll quickly realize why you make such terrible financial decisions.
Most importantly, learn the system and join the community of like-minded people this new year… to be a better investor!
1. You Believe You Are Awesome At Investing
Overconfidence may be the most obvious behavioral finance concept. This is when you place too much confidence in your ability to predict the outcomes of your investment decisions. Overconfident investors are often underdiversified and thus more susceptible to volatility. You will need a mentor with proven track record to show you where are your blindspots.
2. You are bad at processing new information
Anchoring is related to overconfidence. For example, you make your initial investment decision based on the information available to you at the time. Later, you get news that materially affects any forecasts you initially made. But rather than conduct new analysis, you just revise your old analysis. Because you are anchored, your revised analysis won’t fully reflect the new information.
3. You connect the wrong things to each other.
A company might announce a string of great quarterly earnings. As a result, you assume the next earnings announcement will probably be great too. This error falls under a broad behavioral finance concept called representativeness: you incorrectly think one thing means something else.
Another example of representativeness is assuming a good company is a good stock.
4. You Absolutely Hate Losing Money
Loss aversion, or the reluctance to accept a loss, can be deadly. For example, one of your investments may be down 20% for good reason. The best decision may be to just book the loss and move on. However, you can’t help but think that the stock might comeback. This latter thinking is dangerous because it often results in you increasing your position in the money losing investment. This behavior is similar to the gambler who makes a series of larger bets in hopes of breaking even.
Discover here how you can effectively minimise your risk, EVEN before you place a trade!
5. Investors Have Trouble Forgetting Bad Memories
Investing in body building is not like trading in stock.
How you trades in the future is often affected by the outcomes of your previous trades. For example, you may have sold a stock at a 20% gain, only to watch the stock continue to rise after your sale. And you think to yourself, “If only I had waited.” Or perhaps one of your investments fall in value, and you dwell on the time when you could’ve sold it while in the money. These all lead to unpleasant feelings of regret. Regret minimization occurs when you avoid investing altogether or invests conservatively because you don’t want to feel that regret.
6. Investors like to go with the flow
Your ability to tolerate risk should be determined by your personal financial circumstances, your investment time horizon, and the size of an investment in the context of your portfolio. Frame dependence is a concept that refers to the tendency to change risk tolerance based on the direction of the market. For example, your willingness to tolerate risk which may lead you to train, train and train when out there in the markets they are maybe selling you drugs. Alternatively, your risk tolerance may rise when depend in the markets are rising. What ultimately make a Champion? Don’t be fool by the size or beauty. The true will tells in the real competition who will be the Champ. This often causes the investor to workout high or maybe low in spirit. You need a Coach. A good coach may charge you thousands of dollars or they may give you free it all depend on how you approach them.
7. You Are Great At Coming Up With Excuses
Sometimes your investments lose money. Of course, it’s not your fault, right? Defense mechanisms in the form of excuses are related to overconfidence. Here are some common excuses:
· ‘if-only’: If only that one thing hadn’t happened, then I would’ve been right. Unfortunately, you can’t prove the counter-factual.
· ‘almost right’: But sometimes, being close isn’t good enough.
· ‘it hasn’t happened yet’: Unfortunately, “markets can remain irrational longer than you and I can remain solvent.”
· ‘single predictor’: Just because you were wrong about one thing doesn’t mean you’re going to be wrong about everything else, right?
Stop giving yourself excuses and start winning in your investments this new year.
In my young days I wanted to invest in body building. After seeing all the celebrities, magazines and many images etc. It kind of giving you the organism and power as a man but true man come from your heart. How you want woman to be your lawful spouse. I love my body to have just muscles enough for a woman to appreciate them and like dinosaur. Back then I bought myself some weights and those days to I train myself but something just wasn’t there.
Consistent training knowledge and nutrition can paid your off.
It also take a person a lot of gut, love and serious investment to built that body. You need to set goals & manage your times.
I have big dream of having my own gym to workout with, do business and have a coach maybe. But it all went off like nutshell and crazy merely because I lack the knowledge, gut and family support.
Today technology, we can have everything knowledges, images, ideas etc in the websites. Well, thanks to those inventor, genius, business, editor, writer and many others that share on the internet.
I am pretty sure you watch Ice Age this cute animal always got greedy and end up with nothing.
1. Wisdom begins with the dawn of reason, an understanding of the knowledge and principles whereby we may know the true meaning of things.
2. “Knowledge is the endless pursuit of truth, goodness and beauty” Professor Nonaka
3. “Knowledge is the source of Wealth. Applied to tasks we already know, it becomes Productivity. Applied to tasks that are new, it becomes Innovation”…Peter Drucker
Apply Your Knowledge: >>Click HERE now to discover how!<<
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