quiet-the-power-of-introverts-in-a-world-that-cant-stop-talking-susan-cain

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“You are never going to make thatmoney back.”He asked what he’d done wrong.Dorn had many ideas about that. Asan amateur, Alan shouldn’t have beentrading in the first place. And he’drisked far too much money; he shouldhave limited his exposure to 5 percentof his net worth, or $50,000. But thebiggest problem may have been beyondAlan’s control: Dorn believed he wasexperiencing an excess of somethingpsychologists call reward sensitivity.A reward-sensitive person is highlymotivated to seek rewards—from a promotionto a lottery jackpot to an enjoyableevening out with friends. Rewardsensitivity motivates us to pursue goalslike sex and money, social status andinfluence. It prompts us to climb laddersand reach for faraway branches inorder to gather life’s choicest fruits.452/929

But sometimes we’re too sensitive torewards. Reward sensitivity on overdrivegets people into all kinds oftrouble. We can get so excited by theprospect of juicy prizes, like winningbig in the stock market, that we takeoutsized risks and ignore obvious warningsignals.Alan was presented with plenty ofthese signals, but was so animated bythe prospect of winning big that hecouldn’t see them. Indeed, he fell into aclassic pattern of reward sensitivity runamok: at exactly the moments when thewarning signs suggested slowing down,he sped up—dumping money hecouldn’t afford to lose into a speculativeseries of trades.Financial history is full of examplesof players accelerating when theyshould be braking. Behavioral economistshave long observed that executives453/929

“You are never going to make that

money back.”

He asked what he’d done wrong.

Dorn had many ideas about that. As

an amateur, Alan shouldn’t have been

trading in the first place. And he’d

risked far too much money; he should

have limited his exposure to 5 percent

of his net worth, or $50,000. But the

biggest problem may have been beyond

Alan’s control: Dorn believed he was

experiencing an excess of something

psychologists call reward sensitivity.

A reward-sensitive person is highly

motivated to seek rewards—from a promotion

to a lottery jackpot to an enjoyable

evening out with friends. Reward

sensitivity motivates us to pursue goals

like sex and money, social status and

influence. It prompts us to climb ladders

and reach for faraway branches in

order to gather life’s choicest fruits.

452/929

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