2 Little Quizes on How To Be A Cold-blooded Investor!

It’s been ages since my last blog! I have been reading and researching a lot of psychology and finance papers, thus i want to share some of my thoughts on them.

We, human, have been claiming to be a rational being. We tend to think that we have calculated every risk and return before taking any decision (financially of course!). In fact, we are trap in those thoughts and act irrational instead. How so? You are to pick two (A or B) gambling choices.

#1

A: If head, you would receive $100. If tail, you would pay $50.

B: Forfeit the gamble and receive $20

#2

A: If head, you would receive $50. If tail, you would pay $100.

B: forfeit the gamble and pay $20.

Believe me, there are quite a few researcher that have used this experiment and they have consistently found remarkable insight out of it. Most of people would pick B for the first quiz and A for the second quiz.

Disposition theory by Daniel Kahneman is the answer! People tend to take safer choice when faced with a “sure-win” choice (#1: B) regardless how big the profit. In contrast, people tend to gamble when faced with a “sure-lose” choice (#2: B).

Let me give you time to swallow the bitter pill and after that allow me to humbly congratulate you on becoming a cold-blooded investor. Proficiat!

P.S: It would help if someone can give me the mathematics explanation on both quizes :D

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Pros and Cons of Working on Campus

Have you ever given thoughts of working for your own school? Working in campus does not mean, that you are financially distressed (read: desperate). Inversely, your own school acknowledge your skills.

For those who think that your pocket money needs some upgrade, here are my thoughts.

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4 Quick Examples of Making and Selling Small Things

Remember my previous post on “5 Things To Earn Money Young?” I did mention on making things and selling them. Here are 4 things that came into my mind recently.

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5 Things to Earn Income Young

Let me ask you, how old are your parents when they bought their first homes? how old are they when they have you? And here comes the ultimate question, how did they earn that much money at that time?

Well, we don't have that much time to mingle with the problem any longer, because we are going to give out some pointer on how to generate cash from now. Earning money can be anytime and anywhere if you understand the know-how. This blog point out five know-hows. By reading this blog, you have already pass the first know-how. Congratulation! Here are they:

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