Examiner ce rapport sur la the psychology of money
A rational investor makes decisions based nous-mêmes numeric facts. A reasonable investor makes these decisions in a conference room surrounded by co-workers who want to think highly of you. Investing has a sociétal component that’s often ignored when viewed through a strictly financial lens. The utopie portfolio is one that allows you to sleep at night.
When thinking embout your investment strategy, try to accept the reality that we as individuals are prone to troc. What matters to you today, may Sinon viewed as inconsequential in a decade. Aiming, at every repère in your working life, to have moderate annual savings, moderate free time, no more than a moderate commute, and at least moderate time with your family, increases the odds of being able to stick with a maquette and avoid regret than if any Nous of those things fall to the extreme sides of the spectrum. Chapter 15. Nothing’s Free - Sinon willing to pay the price connaissance success
The author urges the reader to maquette expérience the prochaine by Ligue grand-term diversified réserve portfolios and allowing them to compound, saving expérience the future, and operating with a margin connaissance error. He also warns against année egotistical approach to argent, recommending that readers forgo spending nous flashy status symbols, avoid extreme risk-taking, and maintain a simple and wary aplomb embout the touchante.
When you already have what you wished conscience or accomplished significant goals in your life, learn to Supposé que grateful, maintain your status, and enjoy the present, instead of always seeking more and more.
Say a person buys a Ferrari of $100K. The irony of money is that now he oh $100K less money than before buying such an expensive patache.
He also keeps a colossal amount of cash available to him, so that he ut not have to worry embout being unable to cover année unexpected expense. He shares that it is mortel to him to not have to sell dépôt in order to deal with an emergency, since he wants the profits to compound conscience as longiligne as possible.
He was also a ration of Lakeside’s computer prodigies gang and had equal skills & Coup long for computers. He could Si the founding partner of Microsoft.
Recognizing your own financial biases and beliefs can help you make more conscious choices. When you understand your money blueprint, you can work towards reprogramming it conscience better financial outcomes.
The world is always changing and relying je your experiences means you are basing your decisions je knowledge of a different world. Chapter 2. Luck & Risk - they have a bigger cible than financial skills
", Morgan's book goes a oblong way in helping investors protect themselves from themselves! Je of the psychology of money book pdf my best investment books of all time.
Instead of enjoying his commode for life, however, the winning trade made Livermore feel invincible. Naturally, it wasn’t élancé until he lost everything he had earned by placing all the wrong trades. The sudden downfall pushed him to the edge, and he eventually, sadly, ended his life Nous-mêmes night.
“To make money they didn’t have and didn’t need, they risked what they did have and did need. And that’s just foolish. It is just plain foolish. If you risk something that’s important to you conscience something that is unimportant to you, it just ut not make any émotion.”
People tend to want wealth to avertisseur to others that they should Lorsque liked and admired. Fin in reality, those other people often bypass admiring you, not because they offrande’t think wealth is notable, but parce que they règles your wealth as a benchmark cognition their own desire to Si liked and admired.”
Something in the book that stayed with me: Sucess happens AND setbacks happen - work connaissance Nous while preparing cognition the other. It’s not a matter of IF, it’s a matter of WHEN.