Monday, 26 September 2016
What Wrong With Investment Bias??? How I Work Around It?
Loss Aversion Bias?
Most commonly mentioned in investment blogosphere by many bloggers.
Uncle8888 is really big on loss aversion bias! No stop-loss! So what?
Like Chinese saying : Hit till death also never run! But; it doesn't mean he will end up as big loser!
Our own investing bias will continue to base on our personal investing experience, and outcome. We are most unlikely to alter such behavior when it still lead to desirable outcome.
Knowing common concepts is just knowledge; skills are developed when we evolve and develop ourselves around these core knowledge to achieve our own desired investment outcome and goals.
Learn whatever investing theories and concepts when we can; but we better know ourselves well and work around ourselves to fit into our bias to achieve results as by nature we can't really change our nature that much until it hurts us so much!
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LOL!
ReplyDeleteQian bei "marah"!
Stop-loss is just one risk managing technique. Peter Lynch is not a fan of stop-loss either.
There are loads of other risk managing methods and techniques out there.
If you have big outsized winners to dilute out your losses, I don't see anything wrong leh...
Unless of course your portfolio is all red ;)