Investing isn’t just about picking stocks, buying low, and selling high. It’s about thinking - specifically, how you think about information, patterns, and probabilities. Understanding deductive and inductive reasoning can enhance your investment strategy.
“Don't accept your dog's admiration as conclusive evidence that you are wonderful.” ― Ann Landers
Remember the saying "Predictions are iffy, especially the ones about the future".
Who buys more of what they want when they think the price of what they need will rise?
In many ways becoming a skillful investor is a lot like becoming a skillful golfer. But I know several good amateur golfers, ones who consistently shoot in the low 80s, that are lousy investors. Part of the success in the decision-making process of each activity can be determined by how well you manage three things - hidden information, your sample size, and knowing the difference between a good decision and a good outcome.
Don't fall victim to a big fib with your financial advisor