Face your fears and stay cautious Wisdom and courage in investing

Mondo Finance Updated on 2024-02-25

When humanity faces the end of itself, fear and powerlessness arise. While we can escape many dangers temporarily, the end of life is as inescapable as fate. Whenever we think about the impermanence of life, our brain has an instinctive fear response. This fear may not be evident in our daily lives, but it quietly influences our decision-making and behavior. Even if we are not clearly aware of this fear, it can still drive us to seek out things that bring security, strength, and comfort.

Throughout history, there have been examples of outstanding leaders who lost their way because of excessive attachment to life and fear of death. Emperor Wu of the Han Dynasty, the first emperor of the ages, who coexisted with both literature and martial arts, in his later years, due to his deep fear of death, he indulged in the art of seeking immortals, and even fell into a coma because of this fear, killing innocents indiscriminately.

In the world of investing, this fear is also present. Fear arises when investors witness someone else inadvertently liquidating their positions, or when they see the risks in the market. This fear may lead them to seek so-called "safe" ways in investing, or to be attracted by all kinds of ** and try to find comfort in it. Perhaps, when opening an account, the risk warnings are clearly presented, but driven by fear, people may ignore these warnings or seek other solace.

"Risk management" in investment trading is more than just a simple concept. Sometimes, it is not just an opportunity to avoid risk, but more a test of fear and vulnerability in human nature. If you keep putting off decisions or "forgetting" to perform certain critical tasks, then perhaps you should reflect on whether it is because you are unable to face your inner fear and vulnerability.

It is crucial for traders to face up to their fears. Because only by facing up to fear can we truly make rational choices, make investment behavior more cautious, and be in awe of the market. In the world of investing, wisdom and courage go hand in hand, and facing up to fear is the first step to showing that courage.

Hotspot Engine Program

Related Pages