Adrian Reid explains that emotions—fear and greed—drive most investment decisions, triggering a fight-or-flight biological response that reduces rational thinking and causes poor financial outcomes. He argues investors must ‘bypass’ emotion by following a systematic set of rules or a trading system to make consistent decisions.
Yeah, this is. This is the big thing. This the killer with all sorts of investment. Really, if you think about money, it's really emotionally charged, right? So if you make some money, how do you feel? It's like if you lose some money, it's like, oh, if someone steals some money from you, if you get ripped off, there's all this emotion. And then we have all of the baggage from all of the times in the past that money things have happened to us and we have all the fear and greed about these things happening again. And those emotions drive most people's decisions when it comes to money investing. And this is why most people don't get ahead. Because emotion up means intelligence.
Down. Why? Because it's a fight or flight response. You know, the saber tooth tiger attacks the caveman, stress goes up, blood diverts from the brain to the body, cortisol is released. We get ready to fight or run and survive. But nowadays, in the modern world, that doesn't work for us. We still have the same stress response, the same response to the emotion. But there's no saber tooth tiger to run from. There's only the stock market going up and down, or the fear about the real estate deal or, oh my gosh, someone stole 100 bucks from me, or whatever it is. And that emotion kills your financial freedom. And so my whole thing is you've got to bypass the human emotion that we have if you want to be successful as any sort of investor. And the way you do that is by having a system or a set of rules, a process that you follow time and time again so that you know what you've got to do regardless of what's going up on up here. And this is why trade your system, not your emotions.
