The Intellectual
Investor’s
Lexicon
By Vitaliy Katsenelson
Daily Liquidity (feature and bug)
The stock market’s daily liquidity — stocks being priced continuously throughout the day — is both a feature and a bug. If you unintentionally let the market into your life, it will ruin you. The human mind is not built for it; it interprets frequency and loudness as authority.
Dichotomy of Control
Some things are within our power — our values, our character, our decisions — and some aren’t. We can control what we do. We cannot control when the stock market will stop pricing fast-growing companies as priceless and slower-growing companies as worthless.
Discomfort of Right Decisions
The right decisions usually come with a certain amount of discomfort, and for good reason: you are making them against the grain of the market. Selling when everyone else is excited and enthusiastic is incredibly difficult.
