Our comforting conviction that the world makes sense rests on a secure foundation: our almost unlimited ability to ignore our ignorance.

A person who has not made peace with his losses is likely to accept gambles that would be unacceptable to him otherwise.

Individual investors predictably flock to stocks in companies that are in the news.

It doesn't take many observations to think you've spotted a trend, and it's probably not a trend at all.

Courage is willingness to take the risk once you know the odds. Optimistic overconfidence means you are taking the risk because you don't know the odds. It's a big difference.

Policy makers, like most people, normally feel that they already know all the psychology and all the sociology they are likely to need for their decisions. I don't think they are right, but that's the way it is.

Every night for the next week, set aside ten minutes before you go to sleep. Write down three things that went well today and why they went well...Writing about why the positive events in your life happened may seem awkward at first, but please stick with it for one week. It will get easier. The odds are that you will be less depressed, happier, and addicted to this exercise six months from now.