http://moneysmartlife.com/money-mistakes-to-avoid-misunderstanding-risk/ Money Tips for a Better Life Tue, 16 Mar 2010 16:58:44 -0400 http://wordpress.org/?v=2.8.4 hourly 1 http://moneysmartlife.com/money-mistakes-to-avoid-misunderstanding-risk/comment-page-1/#comment-89764 » Weekly Roundup - Night on the Town Edition @ fivecentnickel.com Thu, 24 Jul 2008 18:18:11 +0000 http://moneysmartlife.com/money-mistakes-to-avoid-misunderstanding-risk/#comment-89764 [...] Ben talked about the importance of understanding risk. [...] [...] Ben talked about the importance of understanding risk. [...]

]]> http://moneysmartlife.com/money-mistakes-to-avoid-misunderstanding-risk/comment-page-1/#comment-47306 Tomiko Fri, 18 Jan 2008 16:25:14 +0000 http://moneysmartlife.com/money-mistakes-to-avoid-misunderstanding-risk/#comment-47306 Hi there, i really impressed with your thought. Not only these we often makes mistakes and misunderstandings when it comes to money. Hi there, i really impressed with your thought. Not only these we often makes mistakes and misunderstandings when it comes to money.

]]> http://moneysmartlife.com/money-mistakes-to-avoid-misunderstanding-risk/comment-page-1/#comment-14021 Money Smart Life » Money Mistakes to Avoid - Procrastination Mon, 13 Aug 2007 12:21:58 +0000 http://moneysmartlife.com/money-mistakes-to-avoid-misunderstanding-risk/#comment-14021 [...] Misunderstanding Risk [...] [...] Misunderstanding Risk [...]

]]> http://moneysmartlife.com/money-mistakes-to-avoid-misunderstanding-risk/comment-page-1/#comment-12907 Andy Mon, 16 Jul 2007 18:18:58 +0000 http://moneysmartlife.com/money-mistakes-to-avoid-misunderstanding-risk/#comment-12907 The biggest mistakes people make when it comes to investing are overconfidence/optimism/illusion of control and fear of loss. Fear of loss is especially tough since it can make you sell a profitable investment too soon (fear of losing the profit) as well as make you hold on to a losing investment too long (fear of admitting your mistake and taking the loss -- i.e., waiting to "get back to even"). Psychologists report that we feel the pain of a loss twice as intensely as we feel the pleasure of a gain. The biggest mistakes people make when it comes to investing are overconfidence/optimism/illusion of control and fear of loss. Fear of loss is especially tough since it can make you sell a profitable investment too soon (fear of losing the profit) as well as make you hold on to a losing investment too long (fear of admitting your mistake and taking the loss — i.e., waiting to “get back to even”). Psychologists report that we feel the pain of a loss twice as intensely as we feel the pleasure of a gain.

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