What does the title mean ? It means that you take so many decisions from time to time on daily basis with respect to investments and so many other things. Many times you form judgements and opinions about persons and things on the some basis. Most of the time when you take a decision, form judgement or internal opinion, you think you have got sufficient information or as much information as much is required to take the decision and again most of the times, you are convinced that the decision taken by you would lead to the desired results.
What happens then ? The decision you made or the judgement or opinion formed, proves you wrong. It is in front of you. You can’t refute. You start thinking that your decision, judgement or opinion was based on objective and rational thinking. You can go into a denial mode and continue to insist to yourself and others that what is happening is just an aberration and is actually not happening. OR. You may start thinking how could you have gone wrong ? This happens with all of us all the time. This is because all our thoughts, views, judgements and opinions are filtered in our mind through preset ones or preset rules based on our understanding and learnings from past experiences.
So what should you do, especially in financial markets ? Keep an open mind. AND. If you think you are thinking markets are acting crazy, watch the market behaviour but minimize your transactions and stick to what you understand. Market symbolizes mass psychology. If your thinking is against the mass thinking especially with respect to any financial position taken by you, your financial health can get seriously affected, unless you are always open to the possibility and awareness and alternative gameplan (which I call Plan B) in case you are proved wrong though you know how right you are.
