Summary

Summary

Summary of chapter 9, “Get-Evenitis”, Riding losers too long

“Get-Evenitis”, Riding losers too long is the second chapter of the book “beyond the fear”. This books deals with various kinds of business behaviors with respect to the world of psychology. “Get-Evenitis” is the phrase many people are unfamiliar of, but many people are said to be practicing unknowingly. The phrase “Get-Evenitis refers to the difficulty which is associated with the bearing of a loss.

People are known to be afraid of losses, this human characteristic is called loss aversion. It is a regular human phenomenon that people dislike losing more than they like winning. So we see that losses are given more focus rather than gains, even if the money value is alike. The losers are known to keep the losses for too long, The chapters identify and discusses such examples where the fear of loss plays on the mind of an individual so that he sticks to his choice and in the end commits more losses. Examples of equity markets equity market, mutual fund management and real state, are said so that the audience could identify what part loss aversion plays with a broader look. The chapter further continues to give financial literature will helps the subject of loss aversion structure. The chapter tells the performance which is generated by loss aversion taking into example different kinds of players, from professionals to a student, all are found to be prone to loss aversion. The example of Cy lewi, Steadman mutual fund manager, Steadman mutual Fund shareholder, college student who invests to make money for college is used with sublime hold on the topic to address the general feature of loss aversion among all.

Summary of chapter 2, “Common bIases”

“Common biases”, is the second chapter of the book, “Biases emanating from the availability heuristic”. With the help of different examples, different kinds of biases emanating from the availability and representativeness of heuristics are given. Ease of recall, retrievability and presumed association is the three bases emanating from the availability heuristic. While insensitivity to base rates, insensitivity to sample size, misconceptions of chance, regression to the mean and the conjunction fallacy are known as the biases emanating the representativeness heuristic. There are even some biases with are beyond the scope of the availability heuristic and responsiveness heuristic. These biases are, anchoring, conjunction and disjunction event bias, overconfidence, confidence trap and hindsight and curse ...