Emotions can cloud judgement when making investment decisions from "summary" of What I Learned About Investing from Darwin by Pulak Prasad
When it comes to making investment decisions, emotions can play a significant role in influencing our judgment. This is due to the fact that humans are inherently emotional beings, and these emotions can often override our rational thinking when it comes to financial matters. As Pulak Prasad points out in his book 'What I Learned About Investing from Darwin,' our emotions are deeply rooted in our evolutionary history, and can lead us to make decisions that are not necessarily in our best interests from a financial perspective. One of the key emotions that can cloud our judgment when it comes to investing is fear. Fear is a powerful emotion that is designed to protect us from danger, but when it comes to investing, it can lead us to make decisions based on panic rather than logic. For example, during a market downturn, fear can cause investors to sell off their assets at a lo...Similar Posts
Don't try to beat the market
The idea of trying to beat the market is a common pitfall that many investors fall into. It involves attempting to outperform t...
Screening for trading opportunities improves success rates
To increase the likelihood of success in trading, one must actively seek out potential opportunities. This can be achieved thro...
The market is a voting machine in the short term and a weighing machine in the long term
In Wall Street, what matters most in the short run, as Benjamin Graham famously put it, is not the financial state of corporati...
Get life insurance
One of the most important financial decisions you can make is to protect your loved ones with life insurance. This type of insu...
Network with experienced investors for advice
One valuable concept shared by successful investors is the importance of seeking advice from experienced individuals in the fie...
Seek out mentors and advisors for guidance
One of the key principles highlighted is the importance of seeking out mentors and advisors for guidance. This concept emphasiz...
Discrepancy between real and perceived value triggers crashes
The discrepancy between real and perceived value can trigger crashes in financial markets. This occurs when investors' percepti...
Overconfidence blinds investors to the dangers of speculative manias
The belief in one's own exceptional insight is a common feature of speculative manias. Investors become convinced that they pos...
Set up automatic investment contributions
Setting up automatic investment contributions is a simple and effective way to consistently grow your investment portfolio. By ...
Control your finances
The concept of controlling your finances is a crucial lesson that many people fail to grasp. To put it simply, controlling your...