When we go for any kind of shopping, we have lots of options available with us to select from. Nowadays, we are getting bombarded with options, such as hundreds of mental disorders, thousands of different careers, even more, holiday destinations and an infinite variety of lifestyles.
When we have offered with lot many options then our mind gets confused about what things we looking for and that will result in postponing of selection or we selected the wrong option. That will create dissatisfaction after selecting an option.
Investment – When we come to equity investment, we have almost 3000+ listed companies available. Now, when we track movements of stock prices then definitely few of them comes as a winner and a few come as a loser in particular day or weeks or months. In addition, we are bombarded with lots of information from various sources. So, when we get offered and focused on so many options our mind starts getting confused. Now, similarly, we have different avenues for investment. We have some criteria for the selection of investment but when we see large options, our mind gets confused and ended up with few choices which later on becomes a part of our regret.
So that what we can do? We can make a checklist regarding what can be our selection criteria for investing and have to follow it rigidly. If the investment option falls under our criteria, then should proceed with it otherwise give it a pass. It is very difficult to perform practically for many people and that is a reason for very few get succeed in the investment field. If we cannot able to avoid noises then this flow of overloaded information will make us paralyzed to make an appropriate choice.
This entire series will be review with various examples from books which are “Thinking, Fast and Slow” and “The Art of Thinking Clearly“.
I am grateful to Mr.Meihol Jhaveri (Founder of Gatisofttech) for development of Lucky Idiot website.