Domain 6
Investor Behaviour & Wealth
Your own psychology, the biases that trip investors up, and the habits that build lasting wealth.
- You're here1Why behaviour beats fund choiceThe biggest driver of your investing results is not which fund you pick. It is how you behave, especially when markets get frightening. 2 min read
- 2The investor's worst enemy is in the mirrorMarkets do not lose you money nearly as often as your own reactions to them do. The main risk in your portfolio is you. 2 min read
- 3FOMO and buying at the topWhen everyone is making money and you feel left out, the urge to jump in is strongest, and it is usually the worst moment to do so. 2 min read
- 4Panic-selling at the bottomFOMO's twin. When markets crash and fear peaks, the urge to sell and 'stop the bleeding' is strongest, and it locks in the loss. 2 min read
- 5Loss aversion: why losses hurt doubleA loss feels about twice as painful as an equal gain feels good. This lopsided wiring quietly pushes us into bad decisions. 2 min read
- 6Recency bias: the last thing you sawWe assume the recent past will continue. After a good run we expect more gains; after a crash we expect more falls. Both assumptions mislead. 2 min read
- 7Herd mentality and hot tipsDoing what everyone else is doing feels safe, but in investing the crowd is often most confident right at the worst moments. 2 min read
- 8Overconfidence and overtradingA little success convinces us we have a gift. That belief leads to more trading, more risk, and usually worse results. 2 min read
- 9Anchoring to a priceWe fixate on a specific number, what we paid, a past high, and let it drive decisions it should have no part in. 2 min read
- 10Confirmation bias in investingOnce we believe something, we hunt for evidence that agrees and dismiss what doesn't. It quietly blinds us to risks in our own choices. 2 min read
- 11The danger of checking prices dailyThe more often you look at your portfolio, the more volatility you see, the more anxious you feel, and the more likely you are to act badly. 2 min read
- 12Why "time in the market" beats timingTrying to jump out before falls and back in before rises sounds smart. In practice it is nearly impossible, and usually costs more than it saves. 2 min read
- 13What market crashes teach usCrashes are terrifying in the moment and, viewed across history, temporary. What feels like the end has always, so far, been followed by recovery. 2 min read
- 14Sticking to the plan when it's hardA plan is easy to follow when markets are calm. Its entire value shows up in the moments when following it feels almost impossible. 2 min read
- 15Rebalancing: selling high, buying low, on autopilotA simple, mechanical habit that keeps your risk in check and quietly forces you to sell what's expensive and buy what's cheap. 2 min read
- 16Reviewing your portfolio: how often is enoughReviewing is not the same as reacting. A calm, scheduled check once or twice a year keeps you on track without feeding the urge to tinker. 2 min read
- 17Goal-based investing in practiceInstead of one vague pile of money, tie each investment to a specific goal. It clarifies decisions and steadies you when markets wobble. 2 min read
- 18Planning a home down-paymentA classic medium-term goal. As the buying date nears, the priority shifts from growth to protecting the money you have gathered. 2 min read
- 19Investing for your child's educationA long-horizon goal that lets you use growth early, then dial down risk as the education date approaches. Time is your ally here. 2 min read
- 20Building a retirement corpus that lastsThe biggest goal of all: a pot large enough to fund decades of life after your salary stops. It has to last as long as you do. 2 min read
- 21The 4% rule and safe withdrawalsA famous rule of thumb for how much you can spend from a retirement pot each year without running out. A useful starting frame, with an Indian caveat. 2 min read
- 22Sequence-of-returns risk near retirementA subtle but serious danger: a crash in the early years of retirement can do far more damage than the same crash later, even with identical average returns. 2 min read
- 23What financial independence really meansNot a number of yachts, but a simple condition: your assets generate enough to cover your living costs, so work becomes a choice, not a necessity. 2 min read
- 24The FIRE idea, minus the hypeFinancial Independence, Retire Early: a movement built on a high savings rate. Inspiring in principle, but worth seeing clearly, without the fantasy. 2 min read
- 25Growing income vs cutting costsTwo levers build wealth: earn more, or spend less. Cutting has a floor; earning has no ceiling. The best investors work both. 2 min read
- 26Avoiding get-rich-quick schemesWealth built through this track is slow and boring by design. Anything promising fast, easy, guaranteed riches is, almost always, a trap. 2 min read
- 27Spotting fraud and Ponzi signalsBeyond hype, some schemes are outright fraud. A few concrete warning signs can save you from losing everything you invest. 2 min read
- 28When to consider a financial adviserYou can do a great deal yourself with what this track teaches. But there are moments when good, unbiased professional advice genuinely earns its cost. 2 min read
- 29The mistakes that cost investors mostAlmost all serious investing damage traces back to a short list of avoidable errors. Knowing them by name is how you sidestep them. 2 min read
- 30Your lifelong investing checklistThe entire track, distilled into one enduring checklist. This is what a sound financial life looks like, kept simple enough to actually follow. 2 min read