Bigger Pockets: The 3 “Lies” You Can’t Afford to Tell Yourself in This Market
When it comes to investing, we can be our own worst enemy. Our brain likes to use shortcuts. That’s fine for everyday decision-making. But not for financial markets.
Part of that process is not to focus on the truth, but on our worldview. That can lead investors into making bad decisions that cost them money, no matter where or how they’re investing.
The most important lesson about markets right now is that investors have agency. They can change their minds.
Today, it’s easier than ever to make a quick change and get out of a bad investment. Or to exit a losing trade and get into a winning one.
Investing, like other areas of life, will never be perfect. But striving to improve can lead to great results if practiced consistently.
In most cases in life, the idea has been drilled in that a mistake is a failure. However, that may not be the case. A mistake can be a learning experience.
In the world of investing, that can help develop rules and parameters for investments and trades. Doing so can help avoid losses, better lock in gains, and make fewer mistakes.
What appears to be a failure is simply a form of feedback. A losing trade in the markets is a signal to get out and try a different approach.
To listen to the full interview on the common lies we tell ourselves, click here.