The influence of selfcontrol on long-term investment success from "summary" of Beyond Greed and Fear:Understanding Behavioral Finance and the Psychology of Investing by Hersh Shefrin
Self-control is a critical factor in determining long-term investment success. Investors who lack self-control often succumb to impulsive decisions driven by emotions such as fear and greed. These decisions can lead to buying high and selling low, which is detrimental to investment returns. On the other hand, investors who exercise self-control are able to resist the temptation to act on their emotions and stick to their long-term investment plan. One of the key aspects of self-control is the ability to delay gratification. This means being able to resist the urge for immediate rewards in favor of achieving long-term goals. In the context of investing, this translates to being patient and not giving in to the impulse to make quick trades based on short-term market fluctuations. Instead, investors with self-control are able to stay focused on their long-term investment objectives and ignore the noise of the market. Another important aspect of self-control is the ability to regulate one's...
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