They also suffer from decision paralysis because they dread
the sensation of regret.
Because when something goes wrong and let's say,
per chance you were to miscalculate something reflectors
tend to have a lot of regret and they hate that feeling of regret.
And therefore tend to make sure that they don't take decisions
which makes them to regret later, and therefore procrastinate.
Matures have, the other end of the z spectrum, they matures.
The matures have less trouble coming in terms with the consequences of their
investment choices.
They don't tend to scramble for excuses to justify incorrect actions,
and they assume responsibility and take responsibility for their mistakes.
Matures also have a far easier time than deflectors with decision making under
pressure because they don't experience regret as acutely as the reflectors do.
They don't reflect on the mistakes too much and
therefore don't experience regret too much.
And therefore, they don't dread decision making and
the consequent if at all that happens.
You don't dread that ahead of time.
Reflectors may be susceptible to some of these biases like cognitive dissonance,
they may have huge loss aversion.
Get even [INAUDIBLE] for instance.
They may have a dormant bias, self control bias,
a regret bias, a status quo bias and a hindsight bias.
Mature investors on the other hand, whom I call on
the z axis matures are typically not susceptible
to the biases that at the other end of the spectrum guys have.
So in terms of the advice that should be offered to each of these personality
types or the advice that you should give yourself as an individual investor,
depends on the personality continuum that is there.
For instance, are you quixotic investor or are you a pragmatic investor?
Are you a framer or desired integrator?
Are you a reflector, who has difficulty making decisions and
has a lot of regret versus somebody who's extremely mature, and can
easily come in terms with the consequences of one so investment decisions.
Now let's say that you find that
you are a quixotic framer,
mature kind of investor.
Let's say, you're a quixotic framer and reflector kind of investor.
So they are susceptible to essentially three negative aspects of
the three continuums of this quixotic framer and deflector.
Then you need to heed the advice of each of the three quixotic personality type,
then you don't have to worry about the others [INAUDIBLE]
mature investors as opposed to a reflector.
So you don't have to worry about that,
you just have to worry about trying to be more pragmatic rather than being quixotic.
So other personality types follow the same scheme of things.
If you are a quixotic,
let's first try to see what other kind of things that you should be looking at,
and what are the kind of advice you should be giving yourself.
And if you're a financial advisor to your client,
you find that the client is let's say, a quixotic.
What kind of advice do you need to give your client or your advisor?
So quixotics need to make sure that they do fundamental research on the investments
and ask some really hard questions before making any investment decisions.
They should seek out information that may be contrary to their beliefs.
So if an individual investor is quixotic, then you need to basically seek out
information that is contrary to your own beliefs.
You need to be a little more skeptical about an investment's
performance prospect, and not overestimate your own market savvy.
You don't have as much, none of us has as much much control as we
think we do over the outcomes of our investments.
In fact, even those most accomplished investors can not control the markets.
Things can and do wrong in investment as they do as they happen in life.
So if you're a quixotic investor,and you're aware of that,
you'll be a better investor for it.
The second continuum or the y axis is actually the framer versus the integrator.
So if you're a framer, one of the advice that you should be giving yourself is
