In Mean Markets & Lizard Brains, former Goldman trader Terry Burnham says our primitive [or "lizard"] brain was designed to help our ancestors hunt for food, daily survival stuff.
But “by its very nature, investing requires us to be forward looking, to anticipate events. Our lizard brains, however, are designed to look backward. Thus, the lizard brain causes us to be optimistic at market peaks (after rises) and to be pessimistic at market bottoms (after falls).” So whether it’s optimism or pessimism, greed or fear, your emotions do your investing, not reasoning and logic—and you can’t trust them. http://www.washingtonsblog.com/2011/03/we-are-easy-prey-for-those-who-want-to.html
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