Rule No. 4- Know yourself and check your Ego

Rule No. 4- Know yourself and check your Ego
Smart investors have an awareness of their psychological weaknesses and seek to manage them. Examples of these include overconfidence,which is the tendency to overreact to the current state of the world,the tendency to look for confirm evidence and innate bias towards optimism or pessimism.A key to successful investing is to leave your ego at the door.