Stock Market Psychology: Why It’s Critical to Successful Investing

When Genius Fails What attributes would you seek for when selecting someone to manage your investment funds? You want them to be trustworthy and knowledgeable, and you're more inclined to choose someone with a strong reputation for networking and intelligence. If you get three of these guys, say two Nobel Memorial Prize winners, you'll be willing to pay more for their 'expertise'. Investors in LTCM, a hedge fund created in 1994 by three geniuses, had high expectations for their investment. Unfortunately, these were not met. The fund failed and needed to be bailed out in 1998. Why IQ is Not Enough Humans are subject to many emotions - fear, greed, loss aversion, denial, external validation. So this…

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