5

Smarter investment behaviour

While we all like to think that we are capable of making rational decisions, it appears that when it comes to investing, a switch inside even the most sensible person seems to flick and rationality disappears in a cloud of emotion. It is impossible for me simply to tell you to be rational in the decisions that you face, but what I can do is point out the consequences of emotional behaviour on your wealth accumulation and some of the demons that drive it.

5.1 You are your own worst enemy

Being an investor is not easy. You have to contend not only with the erratic and unpredictable nature of markets but also the sometimes erratic and irrational way in which you will be tempted to think and behave. This book ...

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