Risk of Ruin
Michael Gelb, author of How to think Like Leonardo daVinci suggests seven principles, that when applied to our daily living, allow us to act like a Genius.
Think of it as becoming the modern Renaissance Man or Woman.
One of the more intriguing principles we have to resolve is the concept of Sfumato (literally “Going up in smoke”). It is a willingness to embrace ambiguity, paradox, and uncertainty.
For those of us who would be wealthy, there’s the rub. How do we move out of our comfort zone and take the necessary risks to get what we want out of life?
Several other authors come to mind when we explore this thinking, and are worth reading in my opinion: Fooled by Randomness, The Black Swan, Sway, and Take the risk. While many books on trading and Investing deal with technical or fundamental analysis, not many explore the psychological aspects.
Two other outstanding authors come to mind if you are interested in the neuropsychology of trading: Dr Janice Dorn and Brett Steenbarger .
These books make a great addition to Trading in the Zone, which you probably already have if you are following the first of the seven da Vincian Principles: Curiosita.
Whatever the scale, large or small, many businesses are run by people, and that introduces the human element.
If Societe General had applied more diligence in overseeing their traders, Jerome Kerviel would not have been allowed to accrue a $7 Billion loss. But why did he do it?
Whether in our own small business, or in our personal trading and investment business, we need to establish systems that prevent us from sabotaging our own best interests.
Logic is usually over-ruled by our primitive brain stem and our emotional responses. If you can find a copy of Sway, you will undoubtedly see yourself as I have seen myself.
In the words of Pogo: I have seen the enemy and he is us.
It’s time to change all that.
Personal Growth Blog
Post a Comment
You must be logged in to post a comment.