You can’t afford to give the stock market a miss. Start now to have enough later!
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…
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…
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…
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…
… 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…
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…
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…
Let’s talk about Habituation. Habituation is really just another trick that our inner con man plays on us: He makes us believe that wonderful things are especially wonderful the first time they happen, and that their wonderfulness wanes with repetition. “Psychologists call this effect habituation,…
Now, that is a no-brainer! Others might even call this a “know-brainer”. Still, I know from personal experience that this principle is not easy to apply; nevertheless, it is worth your utmost attention as it is the key to growing your savings. People are always talking about character,…
Your answer might be a clear “Yes,” in case you have loads of money and zero concerns about it—EVER—being depleted. Congratulations! But in all other cases, I would recommend that you get yourself informed about how money (in general) and the stock market (in particular) work.…