Money Psychology 16: You and me
Investors often innocently take cues from other investors who are playing a different game than they are. When investors have different goals and time horizons, the factors they should pay attention to are different.
When a commentator on CNBC says, “You should buy this stock,” keep in mind that they do not know who you are. Are you a teenager trading for fun? An elderly widow on a limited budget? A hedge fund manager trying to shore up your books before the quarter ends? Are we supposed to think those three people have the same priorities?
So, identify what game you're playing. And beware taking financial cues from people playing a different game than you are.
[The Psychology of Money: Lessons 16 of 18]
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