Separating your Ego from the Investment Process

Separating your Ego from the Investment Process


The best way to learn something is to teach it

somebody

Avoid forecasting and making predictions. When you make a prediction about the future, part of your Ego is attached to it. You want to keep your Ego out of the investing process. You really do. The Ego will get in the way of what you trying to accomplish because it will have its own agenda which involves thumbing its nose to the rest of the world when its right and making you feel frustrated and angry when it’s wrong. It has no redeeming qualities; that’s what makes it the Ego. Ever have an argument with someone who proved you wrong but you couldn’t admit it, welcome to the Ego. The Ego is all emotion with little logic and very insecure. It has to feel it is in control so it can exist. It’s really a pain in the ass but despite everything I have said about it, it is allowing me to type these words on my keyboard. So as much as I hate to admit it, I need it or I wouldn’t be able to exist as a free and separate entity. So no matter what I can do I will never really be free from the Ego. It’s like a wild horse who will never be saddled but you have to make peace with it and be aware of its impact on your investing portfolio.

Imagine watching yourself from a third person point of view, like watching a movie of yourself while you go about your business. Learn to observe your own behavior and try to stand apart from yourself and whatever you are doing. You may not be able to totally tame and control the Ego but maybe you can put a lot of furniture in his way so he doesn’t break anything or do too much damage. Making predictions about anything removes that furniture.