Humans are prone to attachment. Attachment can come in many forms, ranging from damaging addictions, attachments to people (lovers or family members), and attachments to outcomes in all sorts of fields including investments and financial markets.
Attachment is part of the human experience. It’s not necessarily a bad thing, but when we allow our attachments to become all consuming and “run us” then they can become very detrimental. Falling in love with someone who suddenly changes their mind can send us spiraling into a depression for months, substance abuse addictions can literally ruin lives and even kill. And so it is with financial markets, a realm that is plentiful in opportunities for us to become attached to all sorts of things that are largely out of our control.
As financial market participants, or speculators, we should strive to tilt the probabilities in our favor as much as possible while always being prepared for worst case outcomes (risk management). To be a great investor/speculator some level of conviction in ones positions is necessary, however, there is an important distinction between confidence or a high level of conviction, and complete obsession/commitment to a one-way viewpoint. This sort of obsessive one-way thinking and analytical filter more often than not results in disaster when one tempts fate for long enough in financial markets.
The most effective mindset is to carry out the due diligence and analysis necessary to generate a high level of conviction in an investment thesis, while also always being willing to be completely wrong. And most importantly, being willing TO ADMIT WHEN ONE IS WRONG.
It is this last part that is usually the most challenging for human beings - on some level admitting that we are wrong about something, especially something we have staked financial resources on, is a tremendous blow to our ego. It is this ego attachment that is the root of all suffering in the human experience.
Our egos love to attach to external things, ranging from allowing our personal happiness and joy to rise and fall with the results of sports teams, to what other human beings are saying about us, to the numbers on our brokerage account statement.
The key to the human experience is to act like the results of the ‘game’ matter, and to strive for extraordinary results, while all the time being aware that it is all just a game. And to not lose our peace and forget who we are when the results we generate do not match up with our (often lofty and unrealistic) expectations.
Never forget to smile and laugh loudly at how seriously we take some things in this infinitely transitory human experience that we call our life.
The lover, the numbers on the screen, the win in overtime, and even the image in the mirror are ultimately all fleeting and can never provide us with a lasting sense of fulfillment. That deep sense of lasting fulfillment, that can only ever come from within.
DISCLAIMER: The work included in this article is based on current events, technical charts, company news releases, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. This publication is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on www.SEDAR.com for important risk disclosures. It’s your money and your responsibility.