Psychology of Wealth

February 24, 2011 1 Comment


wealthymatters.comThe question why some people accumulate substantial wealth and others struggle so much in this field has attracted the attention of  quite a few psychologists.There have been many studies to correlate various personality traits and behaviour patterns, cognitive patterns , self motivation habits, moods and emotional behaviours and social behaviours with the wealth a person accumulates.

The results of these studies have been used to construct the various quizzes here http://www.marketpsych.com/personality_test.php .They are free and a pretty good way to get to know both one’s strengths and weaknesses as an entrepreneur , investor and/or speculator.

Taking these tests is a great way to get to know the strengths we can play to and the weaknesses to guard against.The results sheets also have many good psychological  tips to work around our individual weaknesses.

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I’ve Joined Tne RandomBlog2011 Challenge

February 24, 2011 1 Comment


wealthymatters.comI’m a bit late, but I’ve decided to join the RandomBlog2011 challenge I found at http://whatsbuggingmetoday.wordpress.com/randomblog2011-challenge/. So here is what I’ll do :-

1.    I will read a minimum of 2 new blog posts every day from any of the tags on WordPress.com at a blog I have never visited before.

2.    I will look outside of my comfort zone and read something totally different from what I normally would. In this way I will expand my horizon.

3.    I will go “Tag Surfing” on the Hot Topics page.

4.    I will follow a “comment trail” – starting with a comment on a friend’s blog from someone I’ve never met and see how far it takes me.

5.    I will try and find new bloggers looking for readers and leave a “like” and a “comment”and ssk them to join in the fun and check out the RandomBlog2011 Challenge.

6.    I will tag my own posts with RandomBlog2011.

7.    I will visit the Daily Post and read through the comments and see if I can find someone looking for readers.

8.  I will specially visit and comment on blogs that may have recently joined the WordPress PostADay2001 or PostAWeek 2011 Challenge.

Filed under Tidbits

The Right Approach To Long Term Investment Success In The Stock Market

February 24, 2011 2 Comments


wealthymatters.comThere are many ways to make money in stocks. But not every way works well over longer periods of time.There are people who never make any money from stocks and there are others who make significant amounts of money in the stock market only to lose it again.To understand how to make money from stocks and keep it the long term we need t0 study the habits of investors who have remained successful over a long term.Such an exercise shows that the odds of long-term investment success are greatly enhanced with an approach that embodies most or all of the following characteristics:

  • Thinking about investing as the purchasing of companies, rather than the trading of stocks.
  • Ignoring the daily noise of  the market. As Graham wrote in his classic, ‘The Intelligent Investor‘, “Basically, price fluctuations have only one significant meaning for the true investor. They provide him an opportunity to buy wisely when prices fall sharply and to sell wisely when they advance a great deal. At other times, he will do better if he forgets about the stock market.”
  • Only buying a stock when it is on sale i.e. available at a discount to its intrinsic value.
  • Focussing first on avoiding losses, and only then think about potential gains. “We look for businesses that in general aren’t going to be susceptible to very much change,” says Warren Buffett “It means we miss a lot of very big winners but it also means we have very few big losers…. We’re perfectly willing to trade away a big payoff for a certain payoff.” Read more of this post

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