The Problem With Positive Thinking

Trading is often about how to take the appropriate risk without exposing yourself to very human flaws.
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gutuami
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there is a difference between positive thinking and high expectations which author put under the same thing.

there's also a difference between dreams and goals. As author says: "Fantasizing about happy outcomes — about smoothly attaining your wishes — didn’t help" - of course it would never help. If you fantasize about something you make up a dream. Make a list of actions to do achieve that dream and it will become a goal. Start working hard and your dream will come true.

this one is pure nonsense also:
Why doesn’t positive thinking work the way you might assume? As my colleagues and I have discovered, dreaming about the future calms you down, measurably reducing systolic blood pressure, but it also can drain you of the energy you need to take action in pursuit of your goals.

so we need to think negatively to preserve energy :lol:
Iron
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He's not saying that. I think he's essentially saying,

'Think about what you want to achieve, then think about the obstacles you could face. If you know that the goal is worth pursing despite the obstacles, then go for it. Otherwise, find something else to focus your energies on'.

Also, whilst no-one likes to dwell too much on the negative, and it's not healthy to do so, it's worth going into ventures with both eyes wide open. For a start, there would be fewer divorces if more people put their optimism bias aside and thought about the worst case scenarios before tying the knot!

I think there is a fine line between assuming you'll fail at something and talking yourself out of giving it a go, and being too optimistic and going all in on the red...

Jeff
gutuami wrote: so we need to think negatively to preserve energy :lol:
Iron
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Just came across the attached on Twitter, and thought it was relevant.
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Naffman
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Your best quote yet Jeff!
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gutuami
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