Acting Fast and Slow
We might have the order in reverse
When most people feel like there's a moment to make money, they act very impulsively, very quickly, and they don't put as much thought or research or diligence or patience into making a decision.
They don't sleep on it.
Because it's making money, you want to strike while the iron is hot.
It might serve you well, but it can also be the source of many unforced errors.
It's likely the opportunity will still be there if you sleep on it.
Then there's the other side of it: when you're trying to protect money.
You'll see the writing on the wall. And you'll wait and see how things work out.
Yet out of an abundance of caution the more prudent thing to do would be to withdraw the money from this investment, place a hedge, or do something to protect yourself immediately.
When the writing's on the wall, they writing's on the wall.
But this time you sit back and wait and see for the action to arise.
An interesting decision making rule that emerges is:
- If you're trying to make money, that's the time to slow down and be a little more diligent. Sleep on it for a day.
- If it's about protecting money, you should be pushing the action and acting more decisively and quickly. Because your nature is to do the opposite.
Actively reminding yourself of this dynamic, and putting in place processes to enforce decision making discipline could save you a lot of misery.
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Note: This is not investment advice.