How our mind Fool us?
Reading & Knowing something doesn't make us competent at execution.
When I was a teenager it occurred to me to go to the gym, lift some weights and become physically strong. I very happily purchased a book by Arnold Schwarzenegger.
The only weight I ever lifted was the bulky book.
Though when starting to lift weights I imagined myself to be Arnold.
What I did not realise was the commitment it takes to be Arnold.
Similarly when we read about 18% or 20% or 24% annual returns and read the journey of others who have done it our mind tricks us into thinking we can also do it.
We don't realise the fact that it takes huge amounts of commitment & resources to achieve those kind of returns.
Hence for our benefit we should be humble enough to not get swayed by such over confidence merely on the basis of reading about finance.
Investments are a full time serious vocation.
