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Share Investing For Dummies, with James Dunn, finance commentator
blacksheep
post Posted: Oct 20 2018, 11:33 AM
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Posts: 5,115
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Infographic from Visual Capitalist - http://www.visualcapitalist.com/6-biggest-...investors-make/

QUOTE
The 6 Biggest Mistakes Ordinary Investors Make
In many areas of life, we are often our own worst enemies. The realm of personal finance is no different.

What’s the biggest threat to achieving financial independence?

Unfortunately, it’s your own brain.

You can invest in all the right things, minimize fees and taxes, and even diversify your holdings. But if you fail to master your own psychology, it’s still possible to fall victim to financial self-sabotage.

THE BRAIN’S DESIGN
Today’s infographic is from Tony Robbins, and it uses data and talking points from his #1 Best Selling book Unshakeable: Your Financial Freedom Playbook, which is now available on paperback.

The graphic is based on a chapter in the book that reveals the key psychological limitations of the human brain. It turns out that these fallible survival instincts have been hardwired into our brains over millions of years, and they become very troublesome when we try to make rational financial decisions.

To overcome these instincts, investors need to adopt simple systems, rules, and procedures that can ensure the decisions around money we make are in our best long-term interest.

SIX PSYCHOLOGICAL PITFALLS TO AVOID
Remember these six pitfalls – and how to counteract them – and you’ll be able to avoid the biggest mistakes often made by investors.

MISTAKE #1:
Seeking confirmation of your own beliefs

Your brain is wired to seek and believe information that validates your existing beliefs. Our minds love “proof” of how smart and right we are.

Even worse, this is magnified by the online echo chambers of the modern world.

News media (MSNBC, Fox News, etc.) tend to favor one point of view
Google and Facebook filter our search results
Unsubstantiated rumors can run unchecked, as long as they reinforce existing points of view
This can be exceptionally detrimental in investing.

Convincing yourself that a particular stock or strategy is correct, without taking into account contradicting evidence, can be the nail in the coffin of financial freedom.

The Solution: Welcome opinions that contradict your own

The best investors know they are vulnerable to confirmation bias, and actively ask questions and seek qualified opinions that disagree with their own.

Ray Dalio, for example, seeks the smartest detractor of his idea, and then tries to find out their full reasoning behind their contrary opinion.


read the rest - http://www.visualcapitalist.com/6-biggest-...investors-make/

Rule #1 - Welcome opinions that contradict your own - rarely works on stock discussion forums sadsmiley02.gif



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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington

Said 'Thanks' for this post: crooky  
 
blacksheep
post Posted: Aug 2 2017, 11:03 AM
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Wasn't sure under which thread to post this, but "Dummies" seemed to be the right word. This is a "doozy" about an overseas company....couldn't happen here, or could it?

QUOTE
Carlsbad man claimed his mines were worth $30 billion

But they weren't worth anything, says SEC
By Don Bauder, Aug. 1, 2017

Long before Mark Twain defined a gold mine as a hole in the ground with a liar on the top, slippery salesmen have tried to peddle highly inflated mining claims to naive investors.

Document
SEC suit against Wilson

On Friday (July 28), the Securities and Exchange Commission filed a doozy of a case in federal court. Defendants are long-time Carlsbad pitchman Robert W. Wilson and two Wyoming companies he owns. Wilson said he was going to resuscitate a mining project in Yuma that could produce graphite. He initially said the claim was worth $18 billion, then escalated the value to $30 billion.

Investors would get a 20 percent profit in 18 months, said Wilson. But in truth, Wilson's companies had "no significant assets" other than an option to purchase the claims on federal land, says the securities commission. Wilson estimated the size of a deposit by taking readings from his car's odometer as he drove around the land, and then made an estimate based on the price of the material. Wilson "has no education or training in mine valuation techniques, "says the securities agency.

In 2015 he told investors that the graphite deposit "may be upwards of 4 billion tons!" and the material was then selling for $2,500 per ton. He brought in $2 million in the graphite project, and used the money on a massage spa, residential rent, restaurants and payments to participants in previous investment offerings. Thus, he was also running a Ponzi scheme. He brought in $2 million on the Yuma project.

In 2015, he claimed that a gold project he was peddling was worth $375 billion. In 2011, he was slapped with a desist and refrain order from the State of California barring him from making any oral or written untrue statements in a securities offering.


https://media.sandiegoreader.com/news/docum...1/comp23890.pdf



--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
flower
post Posted: May 11 2014, 10:47 AM
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In Reply To: mpl's post @ May 10 2014, 08:38 PM

Perhaps a better terminology would be what NOT to "Invest" in due to the company's state of affairs or viability.
Agreed, thought it unwise to start another thread heading, so used this one.

As for Trading, does it really matter in what state the particular stocks finance's are in ?. As most would be Scapling or agile Trades anyway. Most would be traded on the usual Hype, Pump N Dump types. EG: NEN comes to mind.
This is where we probably differ, IMO (taking the investing/trading public as a whole). Its doubtful if more than 20% of all investors/traders are of the scalping or/and ultra short term traders mindset and will use explorers as a medium in which they hope may graduate into a producer, probably trading that stock along the way over a number of years, plenty of examples on this site.

My overall point is that there is little point in even considering the bulk of ASX explorers currently since there is only a remote chance they will even exist next year, so why get yourself into a position where the inevitable outcome will be locking your capital into a non tradeable ASX shell company.

There are however several excellent examples of companies that have made all those transitions and today produce yet have exciting upside potential through their current and planned exploration programmes, surely it is those exploration companies that have to be a better "bet" than one of the possibly 503 who seem headed for financial disaster.



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Combining Fundamental comments with Fundamental charts.
 
mpl
post Posted: May 10 2014, 08:38 PM
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In Reply To: flower's post @ May 10 2014, 07:29 PM

Flower

Perhaps a better terminology would be what NOT to "Invest" in due to the company's state of affairs or viability.

As for Trading, does it really matter in what state the particular stocks finance's are in ?. As most would be Scapling or agile Trades anyway. Most would be traded on the usual Hype, Pump N Dump types. EG: NEN comes to mind.

Just a thought.

 
flower
post Posted: May 10 2014, 07:29 PM
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Didn't know where else to post this implied warning gleaned from today's West Australian on probably what NOT to invest/trade in , especially following the 2014 Q1 reports which exposes many "bare bones"
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503 out of the 684 ASX listed commodity explorers have a market cap of less than $A10 m, according to a Perth broker.

They have an average of $A1.5m in their bank accounts.

The bottom 300 have less than $600,000 in their bank accounts.

Confidence in the sector is already at multi year lows.

Only 181 ASX listed explorers therefore remain as "possibilities" with sufficient capital to keep going.(IMHO)



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Combining Fundamental comments with Fundamental charts.
 
colaiscute
post Posted: Apr 5 2007, 12:13 PM
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Good to see ShareScene.com mentioned as one of the reccomended internet websites to check out if you are starting trading!

I've always loved the style of the "for dummies" range. Really, theres nothing "low level" about it, it has real solid top level concepts. The key difference with these books is its set out so well.

I love the tips, and the definitions, and the examples. Its like being back at school (only less whispering and messing around). The book really takes you through the concepts nice and easy and makes sure you get the points. Very little "expert academic" language.

Share Investing for dummies covers practically every topic you could ask for. At 490 pages, its not a small book, but then again the font size is a bit bigger than normal, which is easy on the eyes.

My only negative comment is that it spends too much time on derivatives (I dont think people new to investing should even try to think about these) and not enough time on tax.


I just love this book.... Share Investing for Dummies and "Bullseye top trader thinking" are the perfect combination to give to any investor with 3 years or less experience, or anyone willing to make sure their education and life goals are on the mark.

On the cover it says "your plain english guide to success on the sharemarket" and this book is just that. Its great content (some things ive never read or heard of before, completely new) in a great format.

Well done James Dunn! Keep up the good work.





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colaiscute
 


BOOK CLUB
post Posted: Mar 16 2007, 11:30 AM
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This topic has been created for free and open discussion of "Share Investing For Dummies" (scroll down for book covers).

I invite any member to please feel free to post any comments or questions you have about this book. Even if you havn't read the book, feel welcome to discuss the general topic of the book.

WIN FREE BOOKS: Each week, members who make quality and interesting posts about this book or any other book in the ShareScene Book Club will be offered a free copy of a John Wiley investment book of their choice.

These book prizes are given to members who support and encourage intelligent discussion in the book club. Simply make a post in any of the Book Club topics to be in the running for a free book. So give it a shot!


 
BOOK CLUB
post Posted: Mar 16 2007, 11:29 AM
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FRONT COVER
Attached File(s)
Attached File  Share_Investing_For_Front.jpg ( 181.95K ) Number of downloads: 0

 


 
BOOK CLUB
post Posted: Mar 16 2007, 11:29 AM
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BACK COVER
Attached File(s)
Attached File  Share_Investing_For_Back.jpg ( 166.98K ) Number of downloads: 0

 


 
 



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