Lesson One · Two Systems
fires in milliseconds. The market doesn't care.
is fast and emotional — sees a red portfolio and screams 'sell everything.' System 2 is slow and analytic, the part that knows the plan you wrote in January still makes sense in March. The problem: fires first, and by the time System 2 catches up you may have already clicked 'sell.' Kahneman & Tversky showed these reactions are predictable patterns called cognitive biases.
“The market doesn't care what you paid. Your brain does — every single day.”