13 Things I Learned About Humans and the Financial Markets
By Dr Wealth • April 13, 2013
Predictions do not work as tomorrow is uncertain. We will only boast about things we have predicted right and talk nothing about the other half we got wrong.
Skills can bring us moderate success. However, luck is needed to be a big success. (credit to Jon)
We tend to credit our successes to good skills and blame our failures on poor luck.
Some of us rely on luck (most unknowingly) by investing for high returns (and losses). A few of us will make big money but most of us will end up much poorer.
Some of us deliberately limit the luck factor by choosing investment products with capital guarantee and guaranteed returns. None of us will make big money but none of us will be very much poorer.
We need to know how much we can afford to lose (financially and emotionally) before deciding to be No. 4 or No. 5, ...
