I saw the following in my news feed and thought, "how could he be so greedy?"
And then I thought, he actually did the right thing by "buying the dip" - and yet he still lost. Millions. He literally became a millionaire overnight, and then lost it all, thinking that somehow he knew what he was doing.
The truth is that his becoming a millionaire was an accident of luck. If he had a strategy, a trading system, an investment policy. A policy that told him when to buy, when to sell, when to diversify, when to double down. If he had a policy that was based on facts and logic and not emotion then he would have become a millionaire and he wouldn't have lost it all!
Would you have done any better? It is easy to tell yourself that you would have, but we are all human. I probably would have made the same mistake and I know better. The only thing that would have stopped me from making the same mistake would have been my financial decision making process. A process that I use to evaluate all my decisions, a process that marries my emotional, physical, and financial needs together - and ensures that my needs are always protected.
When you have a financial decision making process that is designed to reduce your anxiety, that is designed to help you live your dreams, you cut the bonds of greed and fear. You break the emotional ties of bondage that we all live in, which cause us to make objectively bad financial decisions.
What is your process? What are your goals? What financial and emotional needs do you need to protect, in order to ensure that you always make the best decision for yourself and your loved ones?