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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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