Syndicate
Fighting Against Our Ego
One common argument that an investors ego will tell him is that the loss is not real until it is not been made material through concreting the sale. In this way, our ego will push us to withstand the Calvary of seeing the price of our stocks descend down to the most unknown of depths, while we hope that one day this tendency turns around and then slowly goes up getting closer, with lucky, to the original price at which it was bought at. In that moment our joy will be so immense that we will feel that we were right for selling. But is it really worth all the terrible night sleeps, and all the energy that was used to go back to our original position? Our objectivity indicated to us that we were wrong and that we should sell but our ego got in our way in order to save its image and self esteem. When we sometimes hit the nail on the head, we become invaded with a feeling of superiority and feel like fighters that cannot be beat for having been so smart. In this situation our ego will push us to quickly take the profit because it needs to gratify itself for having gotten it right. Our egos are childish and they require of immediate gratification and pushes us to quickly grab the profit, no matter how small they are, but that is the reward it needs. It loves to boast and to the contrary, hates being in the wrong, and will deny it when confronted with reality. That is why one will always hear about the performances and great exploits of the speculators in the market but they will rarely talk about the times they were wrong. The first thing that needs to be done in order to rid ourselves from the trap of our own egos is to make a conscious effort that our human nature leads us to act in a way that is contrary to our interests. Taking control of our internal enemy can be one of the most difficult things to accomplish. Overcoming it requires continual and permanent effort on our part.