One important way to Apply The Inaction Intertia Effect

Th e oldest rule in investing is also the simplest: “Buy low; sell high.”

 obvious— on the surface: it means that you 

should buy something at a low price and sell it at a high price. But what, in turn, does th...

People place too much importance on one aspect of an event and fail to recognize other factors.

To combat this effect, it is important to remember to keep perspective, look at problems from many angles, and weigh several factors before making a decision. 

The halo effect is a cognitive bias. It causes people to assume something because of their impression of other aspects of it. For example, people think someone will have an interesting personality simply because they find the person attractive.

We can find the hal...