Investment decision-making, the most important ability is emotional management ability. In fact, what I am talking about is the mental apparatus that humans inherently possess.
The concept of a mental apparatus can be seen as a psychological "immune system" that helps us cope with the uncertainties of life and past losses.
The most important aspect of investing is emotional stability. The mental apparatus can help us optimize our system:
- Rational decision-making: Guides you to shift from emotional responses to rational thinking, enabling you to make wiser choices.
- Adapting to change: Encourages you to break free from past constraints and be brave in trying new things.
- Psychological reset: Provides a mechanism for you to psychologically restart and adapt to new environments or challenges.
This apparatus or system can be understood as a self-regulating mechanism that enhances an individual's ability to cope with investment challenges through reflection, learning, and practice.
Moreover, this apparatus and system can be deliberately practiced. Generally speaking, the stronger this ability, the more specific the risk assessment and decision-making framework will be, and the greater the likelihood of making correct judgments in the face of market fluctuations!
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