Hi
I've only just come upon this thread, (not too good still at circumnavigating all the potentials ) but I thought the article in todays "telegraph" pg 43 could be interesting and relavent.
The article is primarily about shares investing, but states same overall responses generally with property investors.
"A Maquarie Bank study shows most investors fail to recognise and manage their emotions. They are frequently over-optimistic when it comes to investing and over-react later when things don't go as planned."
"The best time to invest is when everything looks grim - just when most individual investors are most reluctant to do so." "In fact, it is at these times that investors are most tempted to sell, re-acting to short term losses."
"Investment psychology expert John Notsinger says the brain does not work like a computer when it makes decisions.
Instead it processes information through shortcuts and emotional filters to shorten the analysis time. The decision you arrive at through this process is often not the same decision you would make without these filters."
It seems to be a good explanation, but I'm not that fast at typing, and don't have the know-how to lead you to it through links etc. Sorry.
It does have 1 other good piece of info re information that people work on and from, and it is - "The fact is that past returns provide information about only one thing - the past."
jahn
I've only just come upon this thread, (not too good still at circumnavigating all the potentials ) but I thought the article in todays "telegraph" pg 43 could be interesting and relavent.
The article is primarily about shares investing, but states same overall responses generally with property investors.
"A Maquarie Bank study shows most investors fail to recognise and manage their emotions. They are frequently over-optimistic when it comes to investing and over-react later when things don't go as planned."
"The best time to invest is when everything looks grim - just when most individual investors are most reluctant to do so." "In fact, it is at these times that investors are most tempted to sell, re-acting to short term losses."
"Investment psychology expert John Notsinger says the brain does not work like a computer when it makes decisions.
Instead it processes information through shortcuts and emotional filters to shorten the analysis time. The decision you arrive at through this process is often not the same decision you would make without these filters."
It seems to be a good explanation, but I'm not that fast at typing, and don't have the know-how to lead you to it through links etc. Sorry.
It does have 1 other good piece of info re information that people work on and from, and it is - "The fact is that past returns provide information about only one thing - the past."
jahn