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Episode 3198:
J.L. Collins reveals the psychological traps that cause most investors to lose money in the stock market, despite its long-term upward trend. From panic selling to the illusion of stock-picking skill, he outlines how emotional decisions, media noise, and overconfidence sabotage returns and why the smartest move is often the simplest: stay the course with index funds.
Read along with the original article(s) here: https://jlcollinsnh.com/2012/04/25/stocks-part-iii-most-people-lose-money-in-the-market/
Quotes to ponder:
"We are psychologically unsuited to prosper in a volatile market."
"Even slightly beating the Index year after year is vanishingly difficult."
"It is the beer that is the real, operating, money making underlying businesses beneath all that foam and froth that relentlessly drives the market ever higher."
Episode references:
The Psychology of Money: https://www.amazon.com/Psychology-Money-Timeless-lessons-happiness/dp/0857197681
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