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freeforex-signals
Wednesday, 4 January 2023
Self-control

Self-control

 

Self-control, an aspect of inhibitory control, is the ability to regulate one's emotions, thoughts, and behavior in the face of temptations and impulses.[1][2] As an executive function, it is a cognitive process that is necessary for regulating one's behavior in order to achieve specific goals.[2][3]

 

A related concept in psychology is emotional self-regulation.[4] Self-control is thought to be like a muscle. According to studies, self-regulation, whether emotional or behavioral, was proven to be a limited resource which functions like energy.[5] In the short term, overuse of self-control will lead to depletion.[6] However, in the long term, the use of self-control can strengthen and improve over time.[2][6]

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Self-control is also a key concept in the general theory of crime, a major theory in criminology. The theory was developed by Michael Gottfredson and Travis Hirschi in their book titled A General Theory of Crime, published in 1990. Gottfredson and Hirschi define self-control as the differential tendency of individuals to avoid criminal acts independent of the situations in which they find themselves.[7] Individuals with low self-control tend to be impulsive, insensitive towards others, risk takers, short-sighted, and nonverbal. About 70% of the variance in questionnaire data operationalizing one construct of self-control had been found to be genetic.

 

Counteractive

Desire is an affectively charged motivation toward a certain object, person, or activity, but not limited to, that associated with pleasure or relief from displeasure.[9] Desires vary in strength and duration. A desire becomes a temptation when it impacts or enters the individual's area of self-control, if the behavior resulting from the desire conflicts with an individual's values or other self-regulatory goals.[10][11] A limitation to research on desire is the issue of individuals desiring different things. New research looked at what people desire in real world settings. Over one week, 7,827 self-reports of desires were collected and indicated significant differences in desire frequency and strength, degree of conflict between desires and other goals, and the likelihood of resisting desire and success of the resistance. The most common and strongly experienced desires are those related to bodily needs like eating, drinking, and sleeping.[11][12]

توصيات الاسهم الامريكية

 

Desires that conflict with overarching goals or values are known as temptations.[11][10] Self-control dilemmas occur when long-term goals and values clash with short-term temptations. Counteractive Self-Control Theory states that when presented with such a dilemma, we lessen the significance of the instant rewards while momentarily increasing the importance of our overall values. When asked to rate the perceived appeal of different snacks before making a decision, people valued health bars over chocolate bars. However, when asked to do the rankings after having chosen a snack, there was no significant difference of appeal. Further, when college students completed a questionnaire prior to their course registration deadline, they ranked leisure activities as less important and enjoyable than when they filled out the survey after the deadline passed. The stronger and more available the temptation is, the harsher the devaluation will be.[13][14]

 

One of the most common self-control dilemmas involves the desire for unhealthy or unneeded food consumption versus the desire to maintain long-term health. An indication of unneeded food could also be over expenditure on certain types of consumption such as eating away from home. Not knowing how much to spend, or overspending one's budget on eating out can be a symptom of a lack of self control.[15]

توصيات الذهب

 

Experiment participants rated a new snack as significantly less healthy when it was described as very tasty compared to when they heard it was just slightly tasty. Without knowing anything else about a food, the mere suggestion of good taste triggers counteractive self-control and prompted them to devalue the temptation in the name of health. Further, when presented with the strong temptation of one large bowl of chips, participants both perceived the chips to be higher in calories and ate less of them than did participants who faced the weak temptation of three smaller chip bowls, even though both conditions represented the same amount of chips overall.

 

Weak temptations are falsely perceived to be less unhealthy, so self-control is not triggered and desirable actions are more often engaged in, supporting the counteractive self-control theory.[16] Weak temptations present more of a challenge to overcome than strong temptations, because they appear less likely to compromise long-term values.[13][14]

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Satiation

The decrease in an individual's liking of and desire for a substance following repeated consumption of that substance is known as satiation. Satiation rates when eating depend on interactions of trait self-control and healthiness of the food.

 

 


freeforex forex freeforex-signals at 4:25 PM EST
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Tuesday, 17 January 2023 - 12:03 PM EST

Name: "gold gold"
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Understanding Risk Management

Risk management occurs everywhere in the realm of finance. It occurs when an investor buys U.S. Treasury bonds over corporate bonds, when a fund manager hedges his currency exposure with currency derivatives, and when a bank performs a credit check on an individual before issuing a personal line of credit. Stockbrokers use financial instruments like options and futures, and money managers use strategies like portfolio diversification, asset allocation and position sizing to mitigate or effectively manage risk.

 

Inadequate risk management can result in severe consequences for companies, individuals, and the economy. For example, the subprime mortgage meltdown in 2007 that helped trigger the Great Recession stemmed from bad risk-management decisions, such as lenders who extended mortgages to individuals with poor credit; investment firms who bought, packaged, and resold these mortgages; and funds that invested excessively in the repackaged, but still risky, mortgage-backed securities (MBSs).

Practice trading with virtual money

Find out what a hypothetical investment would be worth today.

SELECT A STOCK

TSLA

TESLA INC

AAPL

APPLE INC

NKE

NIKE INC

AMZN

AMAZON.COM, INC

WMT

WALMART INC

SELECT INVESTMENT AMOUNT

$

1000

SELECT A PURCHASE DATE

5 years ago

 CALCULATE

Good, Bad, and Necessary Risk

We tend to think of "risk" in predominantly negative terms. However, in the investment world, risk is necessary and inseparable from desirable performance.

 

A common definition of investment risk is a deviation from an expected outcome. We can express this deviation in absolute terms or relative to something else, like a market benchmark.

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While that deviation may be positive or negative, investment professionals generally accept the idea that such deviation implies some degree of the intended outcome for your investments. Thus to achieve higher returns one expects to accept the greater risk. It is also a generally accepted idea that increased risk comes in the form of increased volatility. While investment professionals constantly seek—and occasionally find—ways to reduce such volatility, there is no clear agreement among them on how it's best done.

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How much volatility an investor should accept depends entirely on the individual investor's tolerance for risk, or in the case of an investment professional, how much tolerance their investment objectives allow. One of the most commonly used absolute risk metrics is standard deviation, a statistical measure of dispersion around a central tendency. You look at the average return of an investment and then find its average standard deviation over the same time period. Normal distributions (the familiar bell-shaped curve) dictate that the expected return of the investment is likely to be one standard deviation from the average 67% of the time and two standard deviations from the average deviation 95% of the time. This helps investors evaluate risk numerically. If they believe that they can tolerate the risk, financially and emotionally, they invest.

 

Risk Management Example

For example, during a 15-year period from Aug. 1, 1992, to July 31, 2007, the average annualized total return of the S&P 500 was 10.7%. This number reveals what happened for the whole period, but it does not say what happened along the way. The average standard deviation of the S&P 500 for that same period was 13.5%. This is the difference between the average return and the real return at most given points throughout the 15-year period.

 

When applying the bell curve model, any given outcome should fall within one standard deviation of the mean about 67% of the time and within two standard deviations about 95% of the time. Thus, an S&P 500 investor could expect the return, at any given point during this period, to be 10.7% plus or minus the standard deviation of 13.5% about 67% of the time; he may also assume a 27% (two standard deviations) increase or decrease 95% of the time. If he can afford the loss, he invests.

 

Risk Management and Psychology

While that information may be helpful, it does not fully address an investor's risk concerns. The field of behavioral finance has contributed an important element to the risk equation, demonstrating asymmetry between how people view gains and losses. In the language of prospect theory, an area of behavioral finance introduced by Amos Tversky and Daniel Kahneman in 1979, investors exhibit loss aversion. Tversky and Kahneman documented that investors put roughly twice the weight on the pain associated with a loss than the good feeling associated with a profit.

توصيات الاسهم الامريكية

 

Often, what investors really want to know is not just how much an asset deviates from its expected outcome, but how bad things look way down on the left-hand tail of the distribution curve. Value at risk (VAR) attempts to provide an answer to this question

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