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August 13, 2008 - "Your
Brain vs. Your Portfolio"
Summary: Jason Zweig has written an interesting book on behavioral
economics and how your brain can impact your portfolio. Figure out
hot to overcome your natural instincts to ensure that you make money in
the stock market. 1) Understand your investments and
set a game plan for what to do if your stock goes up or goes down
significantly. 2) Control the instantaneous
fear response in your
brain. Don't let fear control you and force you to panic
sell. 3)
Businesses evolve slowly. Stocks change quickly. Our brains are built for
trading.
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