Emotions can cloud judgement from "summary" of The Dao of Capital by Mark Spitznagel
When we are in the grips of our emotions, it is easy for us to lose sight of the bigger picture. Our judgment becomes clouded, and we are unable to see things clearly. This is particularly true when it comes to making decisions about our investments. Emotions such as fear, greed, and panic can all influence the way we think about our finances. When the market is booming, we may be tempted to invest more than we can afford, driven by the fear of missing out on potential gains. On the other hand, when the market is on a downward spiral, we may be quick to sell off our investments in a panic, fearing that we will lose everything. This emotional rollercoaster can have a significant impact on our financial well-being. It can lead us to make rash decisions that we later regret, causing us to miss out on potential profits or incur unnecessary losses. In order to make sound investment decisions, it is crucial to keep our emotions in check. We must learn to detach ourselves from the moment and take a step back to assess the situation objectively. By doing so, we can avoid falling victim to our emotions and make decisions that are rational and based on sound judgment.
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