‘I just want someone to decide for me!’ exclaimed my 18 yr old niece, when it came to deciding which university course to choose. Often we want to be certain about what decision to make in life. Certainty is, however, something that one can only have retrospectively. Should I buy, or wait? This was my dilemma in the example that I discussed last week.
Why do we want certainty? I wonder whether it is an ego issue? We don’t want to either look or feel foolish for making what, in retrospective might appear to have been a poor decision. We feel that the success or failure or our trades reflects upon us personally.
In the novel ‘The Dice man’ by Luke Rhinehart, the protagonist is a bored and depressed psychiatrist who decides to inject more chance in his life by using the roll of a dice to make a decision on his behalf.
Picture from 0Four (via Flickr)
The book is , of course, an iconic read, but the point that I am making is that if I use my trading technique ‘like the dice’ in the book, then my trading decision-making is easy. Who am I to question the dice?…..
If you want to see my thoughts about the different asset classes this week, then have a look at this video: