The psychology of risk
Risk aversion is an unwillingness to take on a risk in spite of the fact that the reward amply justifies the risk taken
risk seeking
Thoughts on beating the market
No investment decision should ever be motivated by trying to beat the market. The moment this impulse creeps in, the investor is liable to risk seeking behavior.
The special risks of investing a windfall gain
Investors always need to be alert for things that make us risk seeking. Risk seeking is bad. Risk seeking is being willing to take a risk even if the chances of success are poor. Risk seeking causes investors to lose money.
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