Wednesday, February 29, 2012

The Blue Focus Effect


To solve the problems of today, we must focus on tomorrow.
 - Erik Nupponen

It has been so long since I’ve got something to post here. It’s not that I haven’t got any interesting stuff to write about; rather I was overloaded with the ideas to discuss here. Just that I was preoccupied with some other academic assignments. Now when I’m finally here, let’s start with a simple exercise as follows:
  1. Take a good look all around you and try and notice everything that is brown. Really try and memorize everything you see that is brown, whether it be dark or light shades of brown.
  2. In a moment, without peeking, close your eyes and try to remember everything you saw… that was blue!

This is tricky, isn’t it? Most people are stumped. Actually, we are so focused on the brown things that we hardly notice anything that is blue. This is what psychologists prefer to call the blue focus effect. We sometimes allow ourselves to get so focused on the negative things in our lives (the brown) that we don’t notice any of the positive things (the blue).
I was just wondering if individual/small investors also behave in a similar way. I’m trying to get detailed account of some individuals who would have behaved similarly. I’ll try to put it down here once I’m through with gathering relevant information. Keep watching this space. Till then... Happy Investing!

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