I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!

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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

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Friday, 21 January 2011

3M's - Inside Investor's Mind

Beware "The Seven Deadly Sins of Investing" and best to avoid them.



Confirmation Bias:

Only looking for information and news which is in favour of your ideas

Optimism Bias:

Believing that you are above average and that misfortunes are more likely to befall others

Illusion of Control:

Overestimation of the control you have over economic affairs thinking that you can always influence the outcome

Overconfidence in Prediction:


Believing that your prognostication of the future is the best one

Risk and Regret Aversion:

Either being too cautious to invest or to risky to get out (risky shift; Shift to Caution)

Group Think:

Responding to conformist pressure to think like others

Memory Distortion:

Selective forgetting and memory for past experience in the financial world
Posted by Createwealth8888 at 19:08
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4 comments:

  1. Anonymous21 January 2011 at 20:36:00 GMT+8

    Hi CW8888,
    I am sure there are many more.
    Some of the mistakes I had made not even in your list leh.
    But then how are you able to swim, without first jumping into the water?
    Can you learn swimming on dry land?
    Anyway in life you have to pay something to learn something; no mistake, no learning.
    I am still learning how not to repeat mistakes.
    And I hope not to commit new mistake.
    But there is no guarantee as long as I am in stock marketing.
    Happy learning ,everyone.

    ReplyDelete
  2. Cheng21 January 2011 at 23:53:00 GMT+8

    We are bound to make mistakes. Just make sure your mistakes are small and not large. :)

    ReplyDelete
  3. Createwealth888822 January 2011 at 08:17:00 GMT+8

    Yup. May be avoid using leverages as they will magnify your mistakes too.

    ReplyDelete
  4. Anonymous22 January 2011 at 08:59:00 GMT+8

    Hi,
    Yes, the higher the leverage, the faster you become a multi-millionaire if you succeed.
    If you fail, you must prepare to declare yourself a bankrupt.
    And you may be a bankrupt for life.
    You cannot own anything to your name.
    I have witnessed people in both situations.
    I rather sleep soundly every night and like the tortoise beat the hare in the race, finally.
    And I also preserve my good health and protect the peace and happiness in my family.
    You may choose the other path.
    To each his own.
    Shalom.

    ReplyDelete

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