How much you can take risk

 

Ability to take risk depends upon personal history not intelligence or education

👉If one grew up when the stock market was strong(Bull phase) , can take more risk and invest more money in stock market.

👉If one grew up when stock market was in bear phase , will not take more risk and always hesitate to pour money in stock market.

👉If one grew up when inflation was high, will invest less money in bonds compared to those who grew up when inflation was low.

-When a person takes financial decision, everytime he tells himself a story about what he is doing and why he is doing it and  that inner story has been shaped by his own unique experience felt and his behavior.

-Since we as a humanbeing are emotional and take decision based one the experience what we felt , not by the quality of education or intelligence.