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Rules of psychology for the average investor.

December 16, 2013

Disney shares are easy to buy directly from the Disney company. The fee is very low and the nice dividend goes automatically into your account, even Roth IRA. Easy does it. Three years ago I wrote my contrarian 2 books on the simple and effective Psychology of Investing, trying to show ordinary folks how easy it was to make good money in the stock market, if they could only master and control their fear of losing money and their true/false belief that 25% CG every year is impossible to achieve by speculation.

Ten years ago I bought thousands of Disney shares at $24 per share (it is now $70). I also bought 1000 shares of Disney for my 4 kids as a present. Within a few months I realized that my kids were not interested in learning how to make money (I was surprised that they didn’t ask questions because I raised them to love money). I share this with you the reader to show folks how the human mind likes to lose opportunities in life, yes, likes because it makes an effort to ignore opportunities when they show up (Think about 2 great opportunities in your life you missed because of your laziness or carelessness about doing a serious decision-making. See Kahneman, System 2).

I closed my kids accounts at Disney and transferred the money to work for me instead. “Let my children earn their living the hard way, like most folks,” I said to myself. Today, at $70 per share each one of my grown up kids with Disney shares could have fetched $70,000.00+ for each one! Oh well, for myself I did even better than Disney 10 years ago when I bought 20,000 shares of Apple and Pixar for $14 per share (I recognized Steven Jobs Genius when he started Apple. Oh well again, my kids, actually folks in general have taught me a lesson, “Very few people try to break away from their mind-set of fear and anxiety about investing. Sorry folks, that is the only way you can break into the great life! Sorry again, I wish people were as flexible as I was 24 years ago when my dad passed away and left me a small mutual funds account. I “smelled” the money opportunity and I took an early retirement as a college professor and a well-known psychologist in California. I said to myself, “Use knowing the psychology of the market place to make money.”  I hit the Google classroom. I  learned to invest by asking investors and brokers questions. I spent 3 hours a day on Google until I figured out what investing is. I wrote two books because investing was not what most people believed it was.

Since I retired, every year I earn up to 8 times my top college salary! Read my books, they are great but are now selling 50% off in Amazon or the book stores because the books read like text books, not exciting novels. Funny, I am no longer in the middle class. “You are just lucky,” a friend said. Yes, I am lucky to be flexible enough to become aware of how great life can be when you activate your consciousness and start looking how things are and could be! (Freud said that only 5% of the people engage their consciousness seriously and become really aware of things! Hey, try harder!

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