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Emotional Forces

Peter Kam Fai Cheung SBS

"It's all about fear and greed." A friend investing well in public equity wisely remarked. When others are fearful and the prices of stocks are low, he buys; and then when others are greedy and the prices of stocks are high, he sells. The outcome - he casually treated me with caviar during tea time.

I often hire cars, and get the basic insurance covers. I am always suggested to buy premium insurance covers for fear the unexpected may happen. When I can afford to take the risk or suffer the financial pain, the low-fear message cannot persuade me to avert the potential threat anymore.

Since the introduction of "Mark 6", I have been supporting the lottery game. Betting a little money, I hope to get the 1st division prize. For the past decades, I had asymmetric gain - one 3rd division prize, two-three 5th, and dozens of 6th and 7th; and over all, I have contributed a lot to charity.

Being rational, the power of fear and greed (or hope) has not taken control of me. I have been staying stupid not seizing opportunities to capitalise on others' fear and greed. Having had a taste of the lifestyle of wise ones, I find it hard not to gravitate towards the world's great emotional forces!

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