365QOD- Day1233

A Bit of Certainty With a Little Bit of Uncertainty

“One of our primary needs is Certainty.  Another one is Uncertainty”- Unknown

According to James Altucher:

Lesson#3 Uncertainty is your best friend

Human beings are interesting to study.  We like certainty.  It fulfills a need that we have that if leave our keys in a place that when we come back they will be in the same place.  The idea of someone messing with our keys bugs us.

Keys are a simple example but overall we want our lives to be full of certainty.  Unfortunately, we reach a point when there is such a thing as having too much certainty.  When we reach this point we get bored with certainty.

So at that point we tend to seek a bit of uncertainty to spice up our lives.  This makes things new again and we enjoy them until we feel certainty and start looking for uncertainty.  It is a cycle of certainty followed by uncertainty followed by certainty and so on.

An application in trading would be to not always just pick the investment that you feel will beat the market but to also consider ones that have been loosing recently.  This Warren Buffet strategy of buying when an investment is on sale works well if we accept that we might be wrong at times.  In the past I have read of people who strictly apply this idea by buying what is out of favor and riding it back up as it rebounds.

Today’s question is:

“Do you seek out uncertainty often?”