Tongue-tip phenomenon
Tongue-Point Phenomenon
The tongue-point phenomenon is the phenomenon that occurs when you try to say something and the words don’t come to you immediately, causing you to stumble over your words mid-sentence. This phenomenon is a type of cognitive bias, arising because you predict words based on your own knowledge and experience.
Even in investing, the tongue-point phenomenon can occur. For example, you are considering investing in a certain stock. You have collected a certain amount of information about the stock, but you have not yet fully understood it. In such a case, when you try to discuss the stock with someone, you may stumble over your words.
This is because you are relying on your own knowledge and experience to make a certain judgment about the stock. For instance, if you know that the stock’s performance is favorable, you might judge that investing in it will be successful. However, in reality, even if the stock’s performance is favorable, other factors could cause the investment to fail.
Thus, the tongue-point phenomenon can lead to incorrect judgments in investing.
Impact of the Tongue-Point Phenomenon on Investing
There are two main impacts of the tongue-point phenomenon on investing.
The first is an incorrect investment decision.
Because of the tongue-point phenomenon, you may make a judgment based on your knowledge and experience that turns out to be incorrect. For example, if you know that a stock’s performance is favorable, you might decide that investing in it will be successful. However, in reality, although the stock’s performance is favorable, other factors could cause the investment to fail.
The second is a mis-timing of investment.
The tongue-point phenomenon can cause you to misjudge the timing of an investment. For example, you are considering investing in a stock and have gathered some information, but have not fully understood it. In such a case, when you try to discuss the stock with someone, you may stumble over your words.
This happens because you are making a certain judgment about the stock based on your knowledge and experience. For instance, if you know the stock’s performance is favorable, you might decide that you should start investing immediately. But in reality, even if the stock’s performance is favorable, it may not yet be in an uptrend.
Thus, the tongue-point phenomenon can also cause you to misjudge the timing of investments.
How to Prevent the Tongue-Point Phenomenon
There are the following ways to prevent the tongue-point phenomenon.
- Do not overestimate your knowledge and experience
Your knowledge and experience are based on past events. Therefore, they may not necessarily apply to the current situation. Do not overtrust your knowledge and experience; always incorporate new information and strive for objective judgment.
- Organize your own words
One cause of stumbling over words is that your thoughts are not organized. To organize your thoughts, write them down on paper and organize your words.
- Consult an expert
If you cannot judge by yourself, consult an expert. Hearing objective opinions from a professional can help make your judgments more accurate.
Summary
The tongue-point phenomenon can be a cause of incorrect judgments in investing. To prevent it, do not overtrust your knowledge and experience, continually incorporate new information, and strive for objective judgment. Also, organizing your thoughts and consulting an expert can be effective strategies.
