The Vox Markets Podcast With Justin Waite

“Nothing in the world is worth having or worth doing unless it means effort, pain, difficulty” Theodore Roosevelt In this episode I talk about the psychology of investing because I believe investing is 99.9% a mind game. “The investor’s chief problem—and his worst enemy—is likely to be himself. In the end, how your investments behave is much less important than how you behave.” A highly regarded study led by mathematical psychologist Amos Tversky and Nobel Prize winner Daniel Kahneman found that investors feel the pain of a loss twice as much as the joy of an equivalent gain.  They call this 'Loss Aversion', and it means that investors hate losing money far more than they enjoy gaining money. Fidelity has over $10 trillion AUM and they noted an internal performance review on accounts to determine which type of investors received the best returns between 2003 and 2013 The customer account audit revealed that the best investors are either inactive or dead. IN SUMMARY I’m going to borrow from Rudyard