Replies to post #5272 on A.I.M. Users Bulletin Board (AIMUSERS)

[lostcowboy]

Hi Aptus, I supect Richard would like to read this book http://invest-faq.com/fiveminute/ The book is worth reading, however the author recommends using margin in such a way that I feel is risky. He never shows what happens if the market goes the wrong way.

[karw]

Hi Aptus,

Fully agree with your post.

Although the population tends to get fatter. Looking at older movies (lets say from the seventies), people look thinner. I read somewhere this is an 'objective/measured' fact.

I think we should be glad that people invest for 40 years without a solid 'buy low/sell high' strategy. Acting without plan is planning to lose, some say. Theoretically the likes of us, fortified with a toolkit, should be able to exploit this situation.

I posted this web discussion, in reaction to Tom's post 5262, to show an example of people not taking the idea seriously.

Kind Regards, K

[OldAIMGuy]

Good morning Mark, This month's "MONEY" magazine has an article on brain function and its relation to investing and gambling ("Is your Brain Wired for Wealth?" Page 73, October, 2002).

I have a sneaking suspicion that Mr. Lichello knew all that the article tells back in 1977.

"Whenever possible, you need to develop automated, irreversible investing habits that are tailor-made for neutralizing your brain's worst liabilities while optimizing its greatest assets."

"Putting yourself on investing autopilot minimizes the opportunities for your brain to perceive trends that aren't there, to overreact when apparent trends turn out to be illusions or to panic when fear is in the air. That frees up your brain to focus on the harder work of long-term financial planning."

http://money.cnn.com/2002/09/25/pf/investing/agenda_brain_short/index.htm

The article is worth reading even if you're not a brain surgeon!

Best regards, Tom