Financial Psychology

Chances are, at one point or another in your life, you’ve had concerns revolving around money. In fact, according to the American Psychological Association, money is the leading cause of stress in the U.S.

While learning from your past investment mistakes should certainly teach you lessons, they also shouldn’t prevent you from making sound investment decisions today.

Having the ability to accept repetitive loss increases your odds of hanging on long enough to eventually see a return, and hopefully, more than make up for the risk.

The “Margin of Safety” concept can be dated all the way back to the 1930s, first mentioned by American economist and author, Benjamin Graham. In the case of investing, it means you should always leave room for error, or the possibility that your potential outcome may not be precisely right.

Upon making any choice in life, the concept of second-order thinking allows you to consider all aspects more thoroughly.