CHAPTER 14Digging Deeper into the Way You Think
The key to making money in stocks is not to get scaredout of them.”
—PETER LYNCH
THE GAMBLER’S EFFECT: LUCK/SKILL RELATIONSHIP
In an article entitled, “Gambling Has Drug-Like Effect on Brain,” in USA Today, Dr. Hans C. Breiter explores the effects of gambling on the brain. Breiter found that the parts of the brain that respond to the prospects of winning money while gambling are the same as those that appear to respond to cocaine and morphine. Furthermore, those who act abruptly in the market, chasing gains and treating the market like a poker table or, worse yet, a roulette wheel, would respond with the same parts of the brain. For many investors, this topic hits home or at least should—if you ...
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