Here is an interesting consideration - our psychology (I hate spelling that. I'm changing the spelling to 'cy-call-ogy').
Master Song (Avatar Pending) informed me that it's very important to understand how our cycallogy affects our decisions. At first I thought, "I'm not affected by this cahooey hooa fluffy cyko stuff," but it seems that I was wrong... I was wrong once before too.
He used the example of how a person, when there are many bidders bidding on an item will bid much more when there is great competition, while they will usually be much more cautious when there is only one other competitor. Their starting bid is much higher in a high-competition environment. Of course, I immediately thought about Ebay. That's pretty cool. It's true. I would do the same thing. I'm a victim of my cykee.
So, I saved you a google search on the subject and came up with, of course, a wiki link and a random PDF. Turns out the random PDF displays well and seems to sum up some of the big items well.
Here you go:
Wiki link
Random PDF on Behavioural Economics Cycallogy
B.L.I.P. Heros
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3 comments:
I didn't read the link because I fear knowledge. Your constant gardening will lead to large flowers. In laymans terms, pimpin your brain to books an ejukashuns gon put duckets in yo hizzay.
That's pretty accessible.
Come over to my condo today T1. You can watch me blow my brains onto the wall over some recent bad investments I made.
no really I'm joking. rrreally
T2 - I find your suicide jokes to be not only distasteful but also distasteful.
If I didn't know that your soul is safe with Jesus, and that you know Him and His ways, I would have been more concerned.
Maybe I'm not concerned because I'm a cold, money-hungry investor and too lazy to reach out to a friend in his time of need. It's important to question these things as an investor. Like today when we purposely walked across the road to avoid the homeless people sleeping on the street. I decided to fight with my wife about it and make her and I both realize that we are simply trying to avoid reality and that when we don't walk on that side we're avoiding Jesus. If Jesus needs something we should give it to him. End of story. But...I feel like a helpless puppy because my resources are always tapped and my heart wants to do so much more.
So that's why we're investors!
/END MINI SERMON>
It's been a while since I posted this initial post. With recent events I decided it was important to review this again. The PDF I originally attached, I think, will shed much light on what is going on with the volatility in the market. To my surprise, I have not heard a word in the media about behavioral economics. Kind of sad. I think it would have helped to educate the population and calm the volatility if people could take a better look at themselves.
Anyways, for us Blippers, we can benefit by actually reading this and contemplating how these principals may be affecting our finances.
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