I recently read a book, Drunk Tank Pink And Other Unexpected Forces That Shape How We Think, Feel And Behave by Adam Alter after listening to an interesting interview with the author on my favorite radio station, National Public Radio (NPR).
The book itself was awesome; it gives great insight into the subconscious mind, making us realize the truth behind some of the decisions we make that we think are unconscious but not rightfully so, especially when it comes to our finances.
I also read an article in Forbes Magazine that related this book to the decisions we make in terms of our investments. The first on the list was a very important experiment described in the book that showed people with last names beginning with the second half of the alphabet (N-Z) were more likely to jump at a limited time offer or sale.
The reason? These people were almost always called last at school and had to wait. Although, I do remember one phenomenal professor of mine that decided to start from the middle and go in the opposite direction, which seemed pretty arbitrary for most of my classmates.
This experiment basically showed to take time before seeing those flashing signs for an exclusive one-time only offer, that way you won’t experience buyer’s remorse and feel more satisfied with your newly found purchasing power especially if your last name starts with an N-Z.
Next on the list showed something very simple, yet we usually don’t take into consideration when making an investment. The simple truth we sometimes don’t realize is that stock markets rise on sunny days more than rainy days.
I know that sounds absurd that the weather can have an influence on stocks but, think about it. We tend to be happier when the sun is out. So be wary of the weather when investing in stocks. If you can, invest on rainy days, where your mind may actually be clearer.
So be aware of your subconscious, as contradictory as that sounds. Your subconscious is highly influenced by your environment and surroundings so make sure your judgment is not clouded by the weather or your last name.