Because financial decisions are liked with emotions so: The mental trick we play on ourselves here is an over-admiration of people who have been there, done that, when it comes to money. Experiencing specific events does not necessarily qualify you to know what will happen next. In fact it rarely does, because experience leads to overconfidence more than forecasting ability.
Investor Michael Batnick once explained this well. Confronted with the argument that few investors are prepared for rising interest rates because they’ve never experienced them—the last big period of rising interest rates occurred almost 40 years ago—he argued that it didn’t matter, because experiencing or even studying what happened in the past might not serve as any guide to what will happen when rates rise in the future The world is surprising: Exactly. When faced with an unpredictable event that leads to a mistake, it's crucial to acknowledge that the world is full of surprises and that it's impossible to anticipate everything. Rather than simply vowing never to make the same mistake again, it's essential to accept the unpredictability of the world and prepare accordingly.
___ Bên lề: Cornerstone: Nền tảng, cột mốc. Example: Trust is the cornerstone of any successful relationship. Synonyms: Foundation, basis, bedrock Trick (n): trò lừa - an action that is intended to deceive She played a really nasty trick on me - she put syrup in my shampoobottle! Mẹo: an effective or quick way of doing something Trick to What's the trick to getting this chair to fold up? Mental Trick: lừa tâm lý: The mental trick we play on ourselves Not that: The correct lesson to learn from surprises is that the world is surprising. Not that we should use past surprises as a guide to future boundaries; that we should use past surprises as an admission that we have no idea what might happen next.