How to Overcome The Most Important Daily Battle Investors Face

By James E. Wilson via

Fear sells. Most sales pitches about investing focus on fear. The more fear, the better.

Our internal wiring nudges us towards reacting emotionally to the lure of fear. However, there is an antidote; there is a way to stop letting fear unravel your financial life.

Conquering Fear

The entirety of our approach to investing is to emphasize evidence over emotion. This is a tall order because fear is evoked from the outside. That is, while fear is innate, the impulse to act on fear comes from external forces. Professor Jeremy Siegel of Wharton says, “fear has a greater grasp on human action than does the impressive weight of historical evidence.”

The best way to conquer investing fear is through a combination of data, behavior, and common sense. Taken together these constitute what is known today as Evidence Based Investing. Evidence Based Investing places emphasis on the sources of observed market outcomes rather than narratives and anecdotes.

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