Investor Discipline – What’s that?

Brain_090407This brief slideshow discusses some elements necessary to recognize that our emotions and reactions to investing and markets often hurt results.

Our brains are NOT wired for investing. Discipline and a focus on what you can control are important to success.

There is an investing approach that is based on discipline and evidence from research in both the finance and behavioral finance sciences.

Most people approach investing as if it were a sport where you lose if they win. This NY Times article describes how investing should be approached, and also discusses how William Bernstein describes how to approach investing.

How does one implement what is discussed? You may read more discussion on how through these prior posts: Dimensional and Evidence Based Investing.

 

Photo By The original uploader was WriterHound at English Wikipedia(Original text: WriterHound) [CC BY 3.0], via Wikimedia Commons

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