Posted by: The Soaring Eagle | April 14, 2013

The Art of Prediction


 

Investing is a business that relies heavily on objective knowledge, such as statistics, probability, math, historical data and trends, analysis, logical judgment, in addition to several other fields of factual knowledge.

Most investors, especially those who rely on technical analysis methods to reach buy and sell decisions, stop there. If their analysis suggested that a specific investment did not fit the mathematical model employed, they wouldn’t invest in it.

There is, however, a small camp of investors who use something else, in addition to all the above. That is intuition.

You may have come across the notion of the two hemispheres of the brain. The left hemisphere is specialized in logic, analysis, the outcome of the data feed that come from the five senses. The right hemisphere is intuitive, subjective, spontaneous  It is responsible for our emotions and spirituality.

People differ in terms of which part of the brain they use more often. Accountants, for example, are mostly left-brained. Poets, on the other hand, tend to be more right-brain oriented. A low percentage of any population can use both sides of the brain effectively. Those are hard to find. If you stumbled upon one of them, and were able to recognize the gift, I’d recommend you stick to them as long as possible!

To be a true enlightened investor, you should not ignore your right side of the brain. Although that is a gift, it could be improved with training and practice (to some extent).

So how would intuition help you make investment decisions?

Let’s tackle that tough, and interesting question in the next article.

Till then, why don’t you get more familiar with your brain/mind? Observe your daily life and see which part you utilize more. Here’s a little drill: The phone rang. It’s your best friend calling from the airport, telling you he’s in town for two days. You already had plans, yet, you’d like to see your friend and spend quality time with him. What would you do?

 

The Wealth Maker

 

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