Personal finance 101

After reading many times, one up on wall street, the intelligent investor, thinking fast and slow and losing various opportunities. I observed that biases tend to make us blind! Therefore, we must be aware of our biases before we look into the market because preconceived notions destroy us even before starting our journey that may be finance/non-finance.

Here is the list of all biases and make yourself aware of them-

Let's talk about a simple bias i.e. exponential biases, research has shown that people tend to be confused by numbers, one such case is the exponential one. **Exponential growth bias is the tendency to underestimate compound growth processes. This bias can have financial implications, it can either make or break your financials. **
Best way, do a quick google search and see the projections by keeping time on the x axis and varying it for 1 year to 30 years at the least!

A simple Indian story is the The wheat and chessboard problem

First and foremost, broadly, three types of strategy are there:

1. Fundamental strategy, e.g., P/E, P/B ratio analysis etc
2. Technical analysis, e.g., graph patterns, a falling knife, etc
3. Qualitative(subjective), e.g., your emotions, yearly turnover, industry direction in future

All used in tandem give better results, but we all are working professionals who don't have the time right to follow markets. Solutions-
time, compounding, dollar-cost averaging.

Suggested books are must read

1. One up on Wall Street by Peter Lynch
2. Rich Dad Poor Dad by Robert Kiyosaki
3. The Intelligent Investor by Benjamin Graham
4. Influence: The Psychology of Persuasion by Robert Cialdini
5. The Little Book of Value Investing
6. Warren Buffett's Annual Letters to Shareholders
7. Fooled by Randomness by Nassim Nicholas Taleb
8. The Psychology of Money by Morgan Housel
9. Almanack of Naval Ravikant Read for free :D

Suggested websites for selective reading

1. finshots.in
2. fool.com (google accountbot if you want a shared account at low price) Thank me later!
3. investopedia.com
4. nav.al

Use this image to get an idea of how to start-

Caution: this page is dynamic, and continuous up-gradation might be there that will be updated in future iterations.
Note: More details will be added as time progresses. :D cheers! Ashish