Try replacing advice and opinions from others on what feels right to you. Tune in closely to your body before, during, and after every meal, snack, or beverage. You’ll begin to recognize how certain foods change the way you feel, and you’ll learn that your body already knows exactly what it needs to thrive. 3.
Yet, even legendary investor Warren Buffett noted that while investing is actually simple, it’s not easy. It’s not easy because we’re human beings, almost hard wired to make mistakes. “Investment Mistakes Even Smart People Make and How to Avoid Them” covered 77 such mistakes. And we’re especially vulnerable to mistakes caused by emotions that lead us to make bad decisions. Bull markets lead to emotions such as greed and envy taking over from our rational self — which can result in taking more risk than we should. Bear markets lead to emotions such as fear and panic taking over from our rational self — which can result in what I call “portfolio suicide.” Merriman put it this way: “You can think of investing as a struggle between the emotions that drive us — hope, fear and greed being three prominent examples — and the iron laws of mathematics and probability.” He also noted another interesting analogy between dieting and investing. When it comes to losing weight, there are the multibillion dollar food and restaurant industries whose best interests are counter to your objectives. Similarly, the interests of Wall Street and most of the financial media run counter to the interests of investors.