7 Ways Your Brain Doesn't Let You Make Money

By SiliconIndia   |   Tuesday, October 30, 2012   |    2 Comments
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Bangalore: “The love of ‘Money’ is the root of evil”, but money itself is a necessary evil for all. You need to earn it, spend it to live but need to invest and save as well. The money decisions are very much correlated with the mind hence is also called behavioral finance. This subject is also a very important part of the Chartered Financial Analyst (CFA) curriculum. Meir Statman, a prominent thinker of this field says, “Investors are ‘normal’, not rational”. Sam Ro from Business Insider has compiled seven such thoughts of the human mind which makes us lose money.

1. Your Brain Thinks It's Great At Investing

You are a newbie in the market and still busy experiencing the pros and cons of investments, but it’s an aspect of behavioral finance that you are super confident about your ability to guess a positive prediction about the market. You take heavy investment decision based upon these predictions and end up investing a significant amount of money, and unfortunately lost all your money, then whom to blame? No, it’s not you, but you being over confident and your brain who has redirected you to go for it.

So before your brain boosts too much, you make it understand that you need to study the market, learn all the vices and virtues of investing then try your luck at it.

Also Read: 7 Secrets of Millionaires Revealed

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