The Two Golden Rules in Investment and Life: Keep You Away from Pain and Hesitation
In investment and life, mastering the following two principles can help you make more rational decisions:
1️⃣ Break Free from the Shackles of Sunk Costs
Sunk costs refer to costs that have already been incurred and cannot be recovered. These past investments should not affect your judgments and choices about the future. The core of decision-making should be based on 'current conditions' and 'future benefits', rather than past gains or losses.
2️⃣ Do Not Let Losses Dominate Current Choices
Existing losses are a fact, but they should not become a shackle for current decision-making. Whether in the market or in life, a 'recouping mindset' often leads to more erroneous decisions. What truly matters is to examine the present and focus on options that can improve the future.
💡 Why are these two principles crucial?
The first helps you control risk and avoid unnecessary losses;
The second helps you adjust your mindset and start anew.
📝 Action Suggestion:
Whenever you face a tough choice, ask yourself:
Is this based on past emotions or future rationality? Is the current choice the most beneficial for the future?
Let rationality guide your every step, and your investment journey will be more stable! 💪✨
