Success is often difficult to determine and many use a measurement based solely on absolute returns although all investors seek positive returns in abundant forms. It’s no mystery that the behaviour of investors follows similar cycles seen over and over in both boom and bust segments of market ups and downs and investors for the most part attempt to avoid these cycles only to find themselves frequently falling into a market mentality and accepting the status quo for returns.
I had an opportunity again to watch a video I had seen before at a nursing seminar that discusses what different influences affect our decisions and specifically asks the questions, “What does it take to get people to change?“; especially when you consider that changing behaviour is extremely difficult. Read More…
The real problem with investors is that they are driven too much by the potential returns and not enough with the work that goes behind understanding if returns exist in the first place
I read a study about a week ago that people are only happiest if they know they are making more money than their neighbors and so with that logic if one feels is getting into something that the other is not which has the potential of ballooning then it seems perfectly natural for the other person to want to do the same. Simple sense to me.
The motivation in investing is no different than those who buy a lottery ticket each and every week hoping to hit it big. The only real difference is one is wearing a suit and the other is sitting on a couch.
Load of nonsense. It’s all about the returns. If it isn’t then what would the point be in investing?
I’ve noticed that most investors use the follow the herd mentality most often. If everyone is doing it then i should too. Like lemmings.