Looking at the reports today, I realized to myself how easy it is for us to succumb to our brain’s inherent biases – in this case the narrative fallacy / apophera
Just last week, I noticed my anxiety slowly creeping up as for days in row, there were a total lack of buying opportunities that got surfaced by the report because every stock was going up.
Day after day, as the trend continued self doubts started creeping in slowly. Stories of myself sitting out because of some key factors I missed in my model while the largest bull run ever happened constantly haunted my thoughts.
And then I did the unthinkable on Monday and succumb to this narrative that was going on in my head. I deviated from my strategy only to pick a 10% capital loss within a day before coming to my senses.
Retaining the ability to sit and do nothing while the whole world gets taken over by hype or acting when everyone is cowering in fear is the hardest form of discipline to practice.