Over thinking & Fear → Wrong Decisions

Most of the time, we do courageous activity but success is postponed due to lack of patience. Lack of patience is derived from Fear and the fear is the cause of over thinking. This is explained in the picture attached clearly.

Yes, many times we would have observed in our past that what we desired would have been achieved just by having some extra patience. When we deep dive into the negative reaction showed by us, it will give the answer that we thought many unnecessary things in our mind which would have never happened.

I made many mistakes in life when coming to financial decisions due to Over thinking. Decision fatigue ( getting tired of making too many decisions ) is another big criteria which will keep us away from success. How to over come this ?

Taking less decisions as possible and stop over thinking will lead to success. This is said easily but when we are trying to implement this in our life, it is not that easy. This can be achieved by having a clear conviction by analyzing the facts before entering into any activity. By having the proper conviction in mind, that will give us the confidence and will keep us away from over thinking.

Let's say, I'm taking a position in stock market. I have the conviction that in near term, the market is going to fall. How I made this conviction ?, just by analyzing the fact that foreign institutions are selling heavily in the Indian market for past few months and the budget for 2023 is around the corner and new investments will be delayed. By having this conviction I would have sorted the market. For my surprise the market would have gained 200 points or little more than 1% after I have sorted. What to do in this situation ?

Will I book the huge loss and exit the market ? or will hold the position till the expiry and wait for my conviction to come true ?. Due to this 200 points upward movement, there could be many thoughts running in our mind. The only way to gain profit or success in our activity is to have patience and avoid over thinking. It is not wise to change the decision frequently, which will result in decision fatigue and will eventually end up in losses most of the time.

Financial markets across the globe is defined in a way to deal with traders and investors emotions. When we know how to deal with our emotions, that's when we see profits in financial world. The same is applicable in most of the happenings in our life. Let's not over think and make wrong decisions. By avoiding over thinking, fear is destroyed by itself. When the fear is destroyed, we will have great amount of patience and this will lead to success.

Have a Great Day
B G Nareshkumar