This applies to many areas of life but especially investing. When we invest we crave certainty. We want to know the whichever shares we buy will definitely without shadow of a doubt "go up". And they must go up in a straight line. So when this doesn't happen and share prices jump around, we panic and do stupid things (like liquidating and holding on to cash... just waiting to catch the bottom of the market). We must embrace uncertainty... even celebrate it.
I am trying not to be a groupie but the Behavioural Investor sure has some wise words in it!
Here is the rest of Daniel Crosby's favourite paragraph in his book:
Here is the original tweet.
My favorite paragraph in The Behavioral Investor. Let’s get it, folks. pic.twitter.com/bYQlAAD994— Daniel Crosby (@danielcrosby) January 27, 2019