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The Blue Focus Effect

To solve the problems of today, we must focus on tomorrow.

– Erik Nupponen

It has been so long since I’ve got something to post here. It’s not that I haven’t got any interesting stuff to write about; rather I was overloaded with the ideas to discuss here. Just that I was preoccupied with some other academic assignments. Now when I’m finally here, let’s start with a simple exercise as follows:

(1)   Take a good look all around you and try and notice everything that is brown. Really try and memorize everything you see that is brown, whether it be dark or light shades of brown.

(2)   In a moment, without peeking, close your eyes and try to remember everything you saw… that was blue!

This is tricky, isn’t it? Most people are stumped. Actually, we are so focused on the brown things that we hardly notice anything that is blue. This is what psychologists prefer to call the blue focus effect. We sometimes allow ourselves to get so focused on the negative things in our lives (the brown) that we don’t notice any of the positive things (the blue).

I was just wondering if individual/small investors also behave in a similar way. I’m trying to get detailed account of some individuals who would have behaved similarly. I’ll try to put it down here once I’m through with gathering relevant information. Keep watching this space. Till then… Happy Investing!

PS: Respected readers may contribute their valuable opinions on this issue. Thanks!

One Response

  1. Abhijeet, I find this topic interesting. I would say without a doubt all investors focus on one thing over another. Your example of focusing on the negatives over the positives happens all the time. When Martha Stewart went to jail her stock plummeted! People were focusing on the negative and drove the stock price down. Anyone that was focusing on the positive would have seen that the market over reacted. Fairly quickly the price went back up. Luckily for us, we can use this to our advantage and make a profit!

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