In Part 4, we address how emotional reactions to news, availability bias, and the endowment effect influence investment decisions. Overreacting to headlines, prioritizing readily accessible information, and overvaluing owned assets can lead to poor investment choices. Combatting these biases requires thorough research, strategic planning, and emotional detachment to ensure decisions are rational and effective.

The often debated distinctions between investors and speculators are largely exaggerated. Both groups aim to profit from their financial activities, using similar assets and strategies despite differing risk tolerances. I suggest that the effort to distinguish between the two is not only challenging but largely unnecessary, as their goals and methods overlap more than commonly perceived. The article calls into question the value of maintaining these separate labels within the financial community.