STE's Stocks Investing Journey

Have you been nudged? (  Link ) from BBC.com) <In probably the most well-known example, spillage around the toilet , an age-old problem for at least half of the human race was cut by -80% using an ingeniously simple  intervention. > The 2017 Nobel Prize in Economics was awarded to Professor Richard Thaler for his contributions to behavioural economics. Prof Thaler's work essentially questions the economic dogma of the so-called "rational man" as defined by classical economic theory, who makes decisions based on weighing the additional benefits against the additional costs of every single option.

Finally, one of my favourite and top Behavioral  Economist Richard H Thaler from University of Chicago won the 2017 Nobel Laureate in Economics , joining another top behavioural economist like Robert J. Shiller and   Daniel Kahneman   in the list of Nobel Laureate. He has been recognized by much insightful research link to the economic decision and psychology like “ Endowment Effect “ and “ Mental Accounting “ and also a writer of many best-selling books in economics and behavioural finance.

image credit to AZ Quotes.com John M Keynes may be famous for his metaphors of using “ Beauty Contest “ to explain and describe the investors' perception which caused the price fluctuation in the stock market  and “ Musical Chair “ of how investors speculate in the market. You may find these two interesting metaphors here ( Keynes on Beauty Contest ) and here ( Keynes on Musical Chair ) if you have never heard about it.

What is the 'Gambler's Fallacy' image credit to lanieshope.org The gambler's fallacy is when an individual erroneously believes that the onset of a certain random event is less likely to happen following an event or a series of events. This line of thinking is incorrect because past events do not change the probability that certain events will occur in the future.

If you are investing in any stocks market, you will have experienced on the stock you first purchased in your investing life. For me, it was a counter called “ Magnum Bhd “, a company who operate and manage 4-digit numbers forecast betting in Malaysia. ( yeee.. a sin stock !) . Yap, indeed, it is a “sin “ stock with quite a decent dividend. There was a story on why am I investing in such counter as a start in my investing life. As you may notice from my post on “ About me “, I came from a big family with 7 siblings and my father was a construction worker. We are poor and most of my siblings don’t even have a chance to complete their primary school ( I am just the lucky one who has the chance to complete my tertiary education ). My father like to buy 4-D and he has won quite a big sum in the early days ( around RM10K ) in 35 years ago.  It would have considered a huge sum of money at that time, but since then ..he lost all the money he won plus much more i...