From the UX Beginner Newsletter
What is confirmation bias?
Confirmation bias is the tendency to favor information that confirms existing beliefs; specifically by giving more faith to evidence that confirms beliefs and undermining claims that go against them.
Cognitive biases are systematic patterns in thinking that occur when people are processing and interpreting information in…Higher prices attract attention and create FOMO
Here’s the flywheel driving “buy high & sell low” behavior:
- A stock’s price starts going up
- The higher and more dramatic the increase, the more it attracts media attention.
- Investors feel FOMO and buy
- When the price falls, the investor forgets why they bought the stock, and sell.
Rising prices…
When social signaling ends up hurting us
I’m walking down the street. Out of the corner of my eye I spot an attractive person. I don’t want to look like I’m checking them out, so I try to play it cool and nonchalant. I’m so in my head that I trip over a snag in the sidewalk.
…
Perfectionism is toxic.
If you’re that person who puts toilet paper next to the holder instead of taking 10 seconds to install it… you’re a disgrace to humanity.
If you can’t even do this one thing right, you won’t get anything else right. I don’t care that you’re the CEO of a successful…
Psychology of Money @ ozchen.com
Missed a big investing opportunity? Here’s how to feel less miserable.
My friend bought some AMC stock at $8 and sold it for $56. Incredible gains. I was surprised at his disappointment:
“If I only had put in my life savings in AMC…I’d be a millionaire now.“
I’ve also ruminated on missed opportunities that seem so obvious now: Google, Apple, Netflix…
Psychology of Money
In 1929, the American stock market crashed and accelerated the beginning of the Great Depression.
Imagine how folks who lived through that time felt about the economy. Then imagine the stories they’d tell their children about the stock market.
It’s not hard to guess why someone who’s been burned may…
Psychology of Money
- Financial models = ways to represent a specific financial situation.
- Mental models = ways of thinking about how something works.
Let’s pretend I’m new to investing. I come across a financial model that the stock market will return 8% per year on average. …
Edition #6: Psychology of Money Newsletter
Plus, a personal update about Annual Reviews
Some personal updates. I did an Annual Review Workshop and it was immensely useful to see themes from 2020 and allow new goals to emerge for 2021. I’ll be sharing my Annual Review takeaways next week.
In the workshop I saw the power of Notion, a new productivity tool that…
When will the game stop?
Hey there, you look like a million bucks GameStop shares today.
You’re reading my newsletter about psychology and money. If you missed a week, you can check out the archives here.
I know you really want to talk about GameStop, full stop.
In a moment, I’ll share with you my layman’s…
The financial tradeoffs between singles & couples
Whether you’re single or in relationship, the financial grass may look greener from the other side. In this article, I examine the tradeoffs of both scenarios. Tl;dr? Singles shouldn’t feel too bad, and couples shouldn’t feel too smug.
I never felt more single than in Argentina, 2017. “There will be…
