ad verecundiam
Have you noticed that we are social creatures who devote a lot of our time to thinking about social ranking? And that a by-product of this obsession is a tendency to blindly trust the claims and ideas of people who rank…
Category: Junior Investor You can’t afford to give the stock market a miss. Start now to have enough later!
This-time-is-different-bias or why we don’t learn from our mistakes
Did you know that it is the default settings of our brain that often drive us—despite past experiences—to do things that make no logical sense, though they make perfect emotional sense? That, however, does not make us completely irrational; it…
Unpredictability Ignorance
It’s not so easy to be active in the stock market. Because when people I meet learn that I make my money predominantly from the abundant stock market, they—more often than not—flood me with questions on my prediction of the future trends and…
Employ your brain to save money, or 10.5 safe ways to safely save you money
1) Next Tuesday: Before a purchase, take the time to consider what you’ll be doing, from morning to night, this coming Tuesday. How will this purchase affect you on Tuesday? This simple exercise—thinking about time used on a specific day (you…
Wanna be a trillionaire?
Sounds great, doesn’t it? And you would be the first on this planet, provided that you measure your wealth in the current USD, since I am quite certain that there would already be existent trillionaires when measured in Vietnamese Dong or Indonesian Rupiah. Trillions are flung around in the news nowadays to…
Others are just like me
We have the tendency to overestimate the degree to which others agree with us; therein making this—tendency—just another of those predictable patterns of thought and behavior that lead us to draw incorrect conclusions. Psychologists call this the False Consensus Bias. Let me ask you: “Is agreeing…
The good ol’ gut feeling
We sometimes tend to think that ideas and feelings arising from our intuition are essentially superior to those achieved by reason and logic. As such, intuition—the good old “gut feeling”—has come to be idealized as the Noble Savage of the mind, fearlessly cutting through…
Don’t get framed by …
… the Framing Bias. This is another beautiful mental shortcut that we use to solve common problems. Although this heuristic speeds up processing in our brain, it occasionally makes us think so fast that we miss what is important. When heuristics work, they…
Don’t trust yourself
Have you ever been convinced that you could predict how well you would perform in any stock market situation? If the answer is yes, then you are suffering from the Dunning-Kruger Effect. What that effect literally means is that you are so bad at a…
Correction
In my earlier blog post, I asked which animal kills more people? Despite that the Hippopotamus emerged victorious; in truth, the animal that creates by far the greatest havoc to humankind is the Black Swan. How so? Because the most influential and devastating events in history…
You can’t afford to give the stock market a miss. Start now to have enough later!
This-time-is-different-bias or why we don’t learn from our mistakes
Did you know that it is the default settings of our brain that often drive us—despite past experiences—to do things that make no logical sense, though they make perfect emotional sense? That, however, does not make us completely irrational; it…
Unpredictability Ignorance
It’s not so easy to be active in the stock market. Because when people I meet learn that I make my money predominantly from the abundant stock market, they—more often than not—flood me with questions on my prediction of the future trends and…
Employ your brain to save money, or 10.5 safe ways to safely save you money
1) Next Tuesday: Before a purchase, take the time to consider what you’ll be doing, from morning to night, this coming Tuesday. How will this purchase affect you on Tuesday? This simple exercise—thinking about time used on a specific day (you…
Wanna be a trillionaire?
Sounds great, doesn’t it? And you would be the first on this planet, provided that you measure your wealth in the current USD, since I am quite certain that there would already be existent trillionaires when measured in Vietnamese Dong or Indonesian Rupiah. Trillions are flung around in the news nowadays to…
Others are just like me
We have the tendency to overestimate the degree to which others agree with us; therein making this—tendency—just another of those predictable patterns of thought and behavior that lead us to draw incorrect conclusions. Psychologists call this the False Consensus Bias. Let me ask you: “Is agreeing…
The good ol’ gut feeling
We sometimes tend to think that ideas and feelings arising from our intuition are essentially superior to those achieved by reason and logic. As such, intuition—the good old “gut feeling”—has come to be idealized as the Noble Savage of the mind, fearlessly cutting through…
Don’t get framed by …
… the Framing Bias. This is another beautiful mental shortcut that we use to solve common problems. Although this heuristic speeds up processing in our brain, it occasionally makes us think so fast that we miss what is important. When heuristics work, they…
Don’t trust yourself
Have you ever been convinced that you could predict how well you would perform in any stock market situation? If the answer is yes, then you are suffering from the Dunning-Kruger Effect. What that effect literally means is that you are so bad at a…
Correction
In my earlier blog post, I asked which animal kills more people? Despite that the Hippopotamus emerged victorious; in truth, the animal that creates by far the greatest havoc to humankind is the Black Swan. How so? Because the most influential and devastating events in history…