Limited Attention-Why do people become selectively blind?

1. Human attention is limited, and when faced with multiple tasks and various information, we unconsciously distribute our attention. This characteristic of limited attention leads to distortions in asset prices in financial markets.

2. Due to the limited attention of investors, strategies that aim to diversify investments are difficult to implement in practice. Limited diversification should be based on individual circumstances. "Limited attention" was first proposed by Daniel Kahneman in 1973, referring to an individual's limited ability to process information or execute multiple tasks, making attention a scarce resource in cognitive processes.

Do you find yourself in this situation? Since you started investing in blockchain, do you open the trading platform and check the prices several times a day? Even when you get up to go to the bathroom at night, do you take a glance? If you fall into this trap, how will you have the extra energy and time to learn and grow?

As for the current digital currency investment targets, most of them have not yet landed. In fact, if you study them in depth, the ideal targets are not so numerous. We often rely on our subjective perception and feel that a certain currency is good, imagining how much return it will bring in the future. Therefore, at this stage, we should focus more on improving our investment abilities, understanding the market more accurately, understanding the truth of investment, and understanding human greed and desire. Instead of spending time on hot spots! Sometimes hot spots are not as authentic as you imagine

Limited Attention-Why do people become selectively blind?

1. Human attention is limited, and when faced with multiple tasks and various information, we unconsciously distribute our attention. This characteristic of limited attention leads to distortions in asset prices in financial markets.

2. Due to the limited attention of investors, strategies that aim to diversify investments are difficult to implement in practice. Limited diversification should be based on individual circumstances. "Limited attention" was first proposed by Daniel Kahneman in 1973, referring to an individual's limited ability to process information or execute multiple tasks, making attention a scarce resource in cognitive processes.

Do you find yourself in this situation? Since you started investing in blockchain, do you open the trading platform and check the prices several times a day? Even when you get up to go to the bathroom at night, do you take a glance? If you fall into this trap, how will you have the extra energy and time to learn and grow?

As for the current digital currency investment targets, most of them have not yet landed. In fact, if you study them in depth, the ideal targets are not so numerous. We often rely on our subjective perception and feel that a certain currency is good, imagining how much return it will bring in the future. Therefore, at this stage, we should focus more on improving our investment abilities, understanding the market more accurately, understanding the truth of investment, and understanding human greed and desire. Instead of spending time on hot spots! Sometimes hot spots are not as authentic as you imagine