Mental Models: Salience Bias - Fear and Uncertainty: #42

Mental Models Podcast It's not a brain in a jar, that's the gist!

Be the courageous investor! Fear linked to 3 things: 1: To little information 2: Potential Threat 3: Helplessness Investing is linked to 2 things: 1: Fear 2: Greed The Salience Bias is linked to fear and uncertainty and your primal brain functions in your amygdala. There are 2 types of cognition 1)hot and 2)cold. Hot cognition is primal and linked to lymbic system, while your cold cognition is your rational view. Engage your investing process and training established during cold cognition and NOT during points of fear motivated by investing or hot news cycle (i.e. hot cognition). @ 20 mins in review the Papa John Pizza stock effect - use that cold cognition and eliminate the fear! -Thank you to all who have bought our book “Understanding Behavioral Bia$” - Please write a review on Amazon http://amzn.to/2XHtsOE. The sales of the book support the Mental Models Podcast directly! Positive reviews on Amazon increase the likelihood that others will become aware if the book “Understanding Behavioral Bia$”. - BUY BOOK “Understanding Behavioral BIA$” http://amzn.to/2XHtsOE | Behavioral finance advice and solutions. #mentalModels This book will help you overcome the biases that are keeping you from investment success! Authored by Daniel Krawczyk, Ph.D. & George Baxter, JD, CFA your hosts of Mental models Podcast. Published by Business Expert Press Behavioral Finance Book AVAILABLE NOW ON AMAZON http://amzn.to/2XHtsOE Do you want strategies to make better financial decisions? Do you need a translational guide to Thinking Fast and Slow? Do you want to be a better investor and earn more money? If you said yes to any or all of the above questions then this book is for you! #UnderstandingBehavioralBias