What a prolific thought. You opened my eyes so wide open Sir. So wide it's mind blowing for me. I all the time focused on the goal and not the steps. Thank you for your time sharing your wisdom.
"So, why would anyone spend months figuring out a workable strategy, only to abandon it on news that has nothing whatsoever to do with the strategy?"
Another idea/answer from Morgan Housel's The Psychology of Money:
"The challenge for us is that no amount of studying or open-mindedness can genuinely recreate the power of fear and uncertainty. I can read about what it was like to lose everything during the Great Depression. But I don’t have the emotional scars of those who actually experienced it. And the person who lived through it can’t fathom why someone like me could come across as complacent about things like owning stocks. We see the world through a different lens. Spreadsheets can model the historic frequency of big stock market declines. But they can’t model the feeling of coming home, looking at your kids, and wondering if you’ve made a mistake that will impact their lives. Studying history makes you feel like you understand something. But until you’ve lived through it and personally felt its consequences, you may not understand it enough to change your behavior."
In other words, there is a big difference between backtesting and running a system live as you can't model your emotions.
What a prolific thought. You opened my eyes so wide open Sir. So wide it's mind blowing for me. I all the time focused on the goal and not the steps. Thank you for your time sharing your wisdom.
Thank you Uncle Tom :)
Process over profits, process over profits , process over profits ...I need that beaten into my head! LOl!
"So, why would anyone spend months figuring out a workable strategy, only to abandon it on news that has nothing whatsoever to do with the strategy?"
Another idea/answer from Morgan Housel's The Psychology of Money:
"The challenge for us is that no amount of studying or open-mindedness can genuinely recreate the power of fear and uncertainty. I can read about what it was like to lose everything during the Great Depression. But I don’t have the emotional scars of those who actually experienced it. And the person who lived through it can’t fathom why someone like me could come across as complacent about things like owning stocks. We see the world through a different lens. Spreadsheets can model the historic frequency of big stock market declines. But they can’t model the feeling of coming home, looking at your kids, and wondering if you’ve made a mistake that will impact their lives. Studying history makes you feel like you understand something. But until you’ve lived through it and personally felt its consequences, you may not understand it enough to change your behavior."
In other words, there is a big difference between backtesting and running a system live as you can't model your emotions.