Investing psychology
Everyone wants to be a great investor. And Why not? Investing is challenging, best way to have financial freedom and thereby live life the way we want to live. But market study has suggested that an average investor loses more money than he gains while doing investing or stock trading. Why does this happen? Does it have to do with technical knowledge like fundamental analysis, stochastic analysis, ability to reach charts diligently, knowledge of useful patterns, etc. Well! Expert investors say quite contrary to this. According to them, an average investor remains average because he/she lacks the temperament, the character and above all lack the way successful investors think. It all boils down to psychology. Behavioral psychologists have pointed many limitations which leads to error in our decision making process. Whenever we make decisions we have plenty of information available. But that information contains noise as well. Eliminating noise is quite important while doing investing.