The Psychology of Trading, page-58

@yelrom, the reason for creating this tread was to share my particular expertise and encourage reflective post like yours. My intention was and is, to give my limited contribution to the collective wisdom to overcome the knowledge illusion #48373283. In that regard nothing has changed.

Due to my work and my personal experiences I am used to long journeys. Despite today’s interconnectedness and instant communication I have retained the virtue of patience. Patience is however not to be confused with “sticking your head into the sand” and ignoring the possible downside.

As long as I am convinced of the revolutionary nature of Mesoblast I will not sell my shares. My two boys (young men!) were asking me a few months back when Ethereum was around $ 380 if they should sell because it was trading sideways. Well they are glad they showed patience. In my post #48012808 I reference the Stanford Marshmallow experiment which outlines the benefits of patience. I think patience applies also to Mesoblast and IF Mesoblast succeeds it will make the wait for Marshmallows even sweeter.

A lot of confusion and arguments on HC stem from the fact that traders lecture investors and vice versa. I myself have trade in the early 2000´s very successfully but found the life to stressful and by now I very rarely trade. Since 2015 I have change my style and invest. I found I sleep much better and don’t spend my time in front of the computer. On top of it the returns are spectacular even with Mesoblast!

In my post #49370089 I predicted the wild swings and the feelings these swings would create. Unfortunately these feelings more often than not control our behaviour, be it trading or personal. The good news is that we can control these feelings. First we must recognize them in ourselves and others, then understand the causes and consequences of those emotions, proceed to label them accurately (there is more than fear and greed), then express the feelings appropriately and finally regulating them effectively. I have listed in my previous posts a number of regulating strategies.
In my experience psychology in trading is hugely undervalued. HC is a good example of this. It shows how some people are driven by their emotions and make investment decision based on them. This leads to buying high and selling at low prices. So whilst we cannot influence trial outcomes, FDA decisions, partnership deals etc. I for one can influence and regulate my emotions which are nothing else then bio-chemical reactions and so can you, or as @Photoguru said “only worry about what you can change”.

P.S. In my holiday if have been digitalizing my old photos from Tibet, India, Pakistan, Afghanistan and Nepal. I allow myself to post one from Tibet which shows contentment and patience.

@Damolition I am flattered that you think Mesoblast would pay me for my post. But since I live in Switzerland I should maybe contact Novartis.