July 27, 2012 at 12:35 PM EDT
Stupid Investing Tricks
That’s the title of a Jason Zweig article for the Wall Street Journal. In the article, he points out how investors over-react to short-term information. According to new research, this area of the “rational” brain [frontopolar cortex] forms expectations of future rewards based largely on how the most recent couple of bets paid off. We do...
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