Itsallaguess wrote:If by taking this approach, the bulk of 'optimum Green Room returns' can carry on ticking away and 'doing their thing', and the process which allows for the long-term 'distraction' necessary for that to happen is some relatively low-level Red Room excitement, then doesn't that just fall into the important 'know thyself' aspect of personal investment?
Of course, it's 'self-diversion', but it's actually being done with clarity and purpose, and is based distinctly on an investor knowing themselves well enough to allow themselves to do it - for 'the greater (Green Room) good'...
I'd caution against seeking too much (or much at all) in the way of entertainment from your investing and try to keep the focus on the primary objective, which would be to maximise risk adjusted returns (whatever that translates to for you) in order to meet your financial goals. There's every chance that dull will eventually beat thrilling. Buy a lottery ticket if you want a low cost gamble or do a sport or activity for the excitement, would be my recommendation.
Per Dod's earlier post, though, it's your own money you're running so clearly you can do as you see fit. It's for you to weigh the pros and cons: finding what works for you in practice vs. in theory is key to longer term success, even if that practice might appear imperfect to an onlooker...
Still, by posting about these things on public forums we invite feedback from others, and my opinion is that self-control and investment discipline are fairly low-hanging fruit, with material benefits if you can raise your game:
- It's usually about doing less, exercising patience and retaining a focus on your intended goal and time horizon. When stuff happens in markets, as it does, investors can feel compelled to react somehow as if this improve things, but very often the best reaction is to do nothing. The Jesse Livermore quote is somewhat relevant: "The big money is made by the sitting - the waitin' - not the thinking"
. The over-thinking, driven by emotions, is what can readily unseat people from their previously sound plans.
- Akin to reducing investment costs, the benefits of improved self-control and discipline will compound over time: while In the near term the advantage may be slight, these slight advantages accumulating and compounding over an investment lifetime can(/will) lead to substantial benefits eventually.
- Furthermore - and perhaps the money-shot - self-control is a skill that transfers readily and beneficially to other aspects of life where compounding also applies: think good dietary habits, beneficial exercise regimes, avoiding reacting emotionally to "events" that occur or idiots you come across, etc. Practice this stuff across different aspects of your life and it all gets easier and the outcomes usually better. What's not to like?