A Four-Step Strategy for Learning How to Play Chess or Invest
By Douglas Goldstein, CFP®
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When you learn how to play chess or invest, you’ll soon find that every move you make must have a purpose. In the book, The Winning Investment Habits of Warren Buffet and George Soros, readers pick up a great piece of George Soros advice: He says that if you’re having fun while investing, you’re probably not making serious money because good investing is boring. Some people know what they’re doing, and they make sure that every move they make brings them one step closer to achieving their income goal.
Others – unfamiliar with the rules of sound investing – fail to develop and execute a wealth-building strategy. Worse still, they sometimes do things that appear random simply because they have no idea what they are doing. Think of the chess players you know. Some play by simply moving pieces around on the board, and others play with a set strategy and a list of tactics to implement. Different personalities err for a variety of reasons. Daniel Kahneman, the Nobel Prize winning economist, once pointed out that many people who invest for themselves end up losing money simply because they are overconfident. Since they want to appear like shrewd traders, they often buy or sell some stock just to look good. [CLICK HERE FOR THE FOUR STEPS]
Fantastic.