Saved by Matthew Giampetroni
Who Is On the Other Side?
I didn’t lose that kind of money simply because of a faulty method of analysis. That may have played a role, but something else was going on to keep me in a losing position even to the point where I went into debt to hold onto it. That something was the psychological distortion accompanying a series of successes, drawing my ego into the market posi
... See moreBrendan Moynihan • What I Learned Losing A Million Dollars
Many finance and investment decisions are rooted in watching what other people do and either copying them or betting against them. But when you don’t know why someone behaves like they do you won’t know how long they’ll continue acting that way, what will make them change their mind, or whether they’ll ever learn their lesson.
Morgan Housel • The Psychology of Money: Timeless lessons on wealth, greed, and happiness
The totally unpredictable perceptions of market participants, reflected in momentary stock prices and in the changing multiples that drive speculative returns, essentially have counted for nothing.
John Bogle • Enough: True Measures of Money, Business, and Life
These contrasting points of view reveal our first mistake, a tendency to favor the inside view over the outside view.6 An inside view considers a problem by focusing on the specific task and by using information that is close at hand, and makes predictions based on that narrow and unique set of inputs.