Reading Minds and Markets: Minimizing Risk and Maximizing Returns in a Volatile Global Marketplace

3. Exploit Your Edge; Eliminate Your Weakness I—Beating the Street

Developing an investment process is not for the faint of heart. You have to be ruthless and level-headed when it comes to evaluating not just your portfolio but yourself and your own emotions. The first step toward surviving the jungle of the financial markets is to take a long hard look at yourself. Only then will you recognize the ways your own instincts—everything from your eagerness to believe that hard work is enough to basic human emotions such as greed, fear, pride, and an addiction to excitement—can undermine your ability to remain calm in the face of a noisy and chaotic market. Only then can you realistically evaluate your own abilities and limitations and learn to discern ...