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Muddled Minds Harm Investors

Psychological Isolation

Psychological isolation can seriously damage an investor’s performance.

Muddled Minds Harm Investors

We need to be aware that muddled minds harm investors. Psychological isolation and confused thinking has a direct and bad effect on investment performance. The greatest source of such muddles is isolation. Isolation can quickly generate confusion adding mental blocks to good decisions.

This discussion continues the 10 Paralyzing Mental Blocks of Investors as Part 6 of the White Top View Series, Mind Game . Links to all six parts of the series are at the end of this post.

Isolation: The 9th Mental Block Is A Bad Investment Choice

9. Isolation: You can form a mental cocoon and let yourself become isolated. Doing so means you can miss critical information and market signals. You can rationalize a completely inappropriate or even harmful strategy. Once the walls of isolation begin closing in, wrong or ill-advised decisions can daisy chain into an avoidable disaster.

We really are all in the market together. Your national, provincial, state and community bonds and thus your local taxes are there. Your national, local or corporate and private pension are there. Your direct worth as well as that of all others in society are at play in the market. Trying to take that it all on by yourself is foolish and impossible. Choosing isolation is an expensive and unhealthy error.

Solution: Seek help, most especially when first learning about the market. Be engaged and involved. I am not suggesting that you need the approval of others or that you should seek or act on any consensus. Rather you should use sounding boards and seek impartial advice. Get multiple sources of information and advice. In time, as you grow into your own investing person will recognise what is right for you.

Investment advisors charge fees but the right ones are well worth it and a good sounding boards. The best are excellent sources of impartial advice. Investing is a lifetime game. You have lots of time to learn, to grow and to play your own way. Learn before you try to fly on your own.

If you are going to use an investment advisor be certain to do your homework. Interview them and check them out as thoroughly as you can.

Confusion: 10th Mental Block

10. Confusion: Market noise and media racket plus unending mixed and conflicting signals as well as legions of experts with differing and conflicting information, opinions and solutions can confuse you.

Muddled Minds Freeze

Muddled minds do not work well. Investors need clear calm thinking and knowledge to manage the psychological aspects of investing.

Well the experts are also confused. Heck, they have even hand out Nobel Prizes for concepts and formulas that have been proven nutty ideas and bad research! Your confusion keeps élite company with some high status people and ideas!

Solution: An old academic joke…any two economists together will give you three opinions. On the other hand I could be wrong! Learning and thinking are the solutions for us.

We can work together to build filters for the noise. As our knowledge grows more of that noise will change into information. Two things happen, we recognize most of the racket as noise. It is that and just that.

Tune out the noise and soon we begin to discern useful patterns. We see them emerge and we begin understanding them. That helps. Then we can use the information to our advantage.

In coming conversations we will work step by step to understand exactly how to do that.

That concludes the 6 part  White Top View Series, Basic Numbers. Next we begin discussing the time needed to invest with Part 1: Time to invest or time for an adviser of the White Top View Series, Basic Time.

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Have a prosperous day!


White Top Investor
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These discussions and information intend to help you better understand markets and investing. I am not a financial or investment advisor; opinions are for informational and educational purposes only and are not intended as investment advice. For syndication of the site or blog, please contact

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Links to the White Top View Series, Mind Game

Part 1: 3 Wealth Assassins Lurk

Part 2: Irrational Behavior in Normal Markets

Part 3: Control 10 Paralyzing Mental Blocks of Investors

Part 4: Attached, Stubborn and Helpless Investor

Part 5: Optimism and Unrealistic Minds of Investors

Part 6: Muddled Minds Harm Investors

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