PSYCHOLOGY

Be fearful when others are greedy and greedy when others are fearful.

The investor's chief problem — and his worst enemy — is likely to be himself.

You have to let winners run. That is the hardest thing to do psychologically. But the math only works if your wins are bigger than your losses.

Most traders fail because they are inconsistent. They follow their rules when they're winning and abandon them when they're losing. That is exactly backwards.

The debt snowball works because personal finance is 80% behavior and only 20% math.

Most personal finance makes you feel guilty. Mine does not. Guilt is not a financial strategy. Systems are.

Number go up technology is powerful. Do not underestimate what people will do when they see a number going up.

Fear and greed are the two biggest enemies of the investor. Learn to use them instead of being used by them.

The most important quality for an investor is temperament, not intellect.

Heal your relationship with money first. The strategy comes after.

The behavior gap — the distance between what we should do and what we actually do — is the biggest cost in investing.

Most people don't fail because of the market. They fail because of their own emotions.

I can tell within a few minutes of walking the floor whether a trader is trading or hoping. Hoping is dangerous.

Every diet app counts calories. We count habits. The psychology of why you eat at 11 PM is more important than the number of calories in the chips you ate. That insight built a $4 billion company.

A streak is the most powerful feature we ever built. People will do insane things to avoid breaking a 500-day streak. Loss aversion is a hell of a drug.

The goal isn't to be the smartest investor in the room. The goal is to build a life where you can think clearly when everyone else is panicking.

Investing is 80% psychology and 20% analysis. Most people spend all their time on the 20%.

Investors are their own worst enemies. The data says one thing. They do the opposite.

Markets are made by humans. Humans are emotional. Emotional humans make predictable mistakes. That's the entire hedge fund business model.

I always say you could publish my trading rules in the newspaper and no one would follow them. The key is consistency and discipline.

When you have a system, the hardest part is following it when it's losing.

The stock market is a mechanism for transferring wealth from the impatient to the patient.

The market is driven by fear and greed in the short term. Dividend yield cuts through both emotions with arithmetic.

Emotion is the enemy of good market analysis. The model removes the emotion.

The goal is not to predict. The goal is to respond to what the market is showing you with discipline and without emotion.

He who panics first, panics best.

The most important attribute of a successful investor is behavior, not intelligence.

The key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money trading.