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Fear and greed drive financial decisions from "summary" of FAKE: Fake Money, Fake Teachers, Fake Assets by Robert T. Kiyosaki
Fear and greed are powerful motivators that shape financial behavior. When people experience fear, they tend to react conservatively, avoiding risks and clinging to what they have. This fear often stems from uncertainty in the market or economic instability. Individuals may liquidate investments at the worst possible time, driven by anxiety over potential losses. As a result, they miss out on opportunities that could lead to significant gains. On the flip side, greed manifests when markets are booming. Investors become overly confident, often ignoring warning signs and diving headfirst into risky ventures. The allure of quick profits can cloud judgment, leading to poor decision-making. In this euphoric state, individuals may invest in assets without fully understanding the risks involved. They chase after the latest trends, hoping to strike it rich, often resulting in devastat...
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