INVESTING amusement average humans myths & traps finally notes & references
I used to love amusement parks, especially coasters. Kind of a theme for my life.1 I was scaring myself to death, but part of me really liked it. For a long time, I even tried to build a lifestyle around it.
In my later years I finally got to meet and talk with my ego. I brought up the roller coasters, playing with fire, drugs & alcohol, the stock market, and other adventures. Ego said, “Hell, I was just fooling around, I thought we were having fun. I didn’t think you actually believed in it. I didn’t know it would do real damage!” Then he said, “I am so sorry!” and we hugged each other. -Larry
Why Does It Feel So Good When Our Stocks Go Up?
On a neurochemical level gambling, day trading and speculation are not very different. Behavioral economist Sarah Newcomb says that “There are certainly legitimate reasons for the occasional trade. Some trading is the result of long-term planning and the execution of a solid strategy. However, repeated studies, including Morningstar’s annual Mind the Gap report, demonstrate that investors who actively trade tend to underperform the market.”