Stock prices fluctuate constantly. There are several reliable ways to mitigate stock price volatility: trading short-term gap price differences, buying and selling with momentum, or holding high-quality stocks for the long term until volatility averages out. When stock price movement is mathematically differentiated by time, the instantaneous price emerges—but humans cannot act in microseconds. In contrast, computers, with enhanced performance, can now trade at these speeds. Furthermore, by using artificial intelligence to analyze stock data, computers can reduce mistakes and trade algorithmically, unaffected by emotion. Still, even computers are limited if humans incorrectly input trading rules. Humans are not suboptimal investors due to a shortage of information or knowledge, but because they often fail to follow the necessary rules in each situation. - Joseph’s “just my thoughts”
If thinking is categorized practically, it can be broadly split into ‘ volitional thinking ’ and ‘ instrumental thinking .’ Volitional thinking involves the belief that to succeed, a person must have a strong will to overcome hardships and obstacles. Self-improvement falls under this category. However, to actually overcome hardships and obstacles, it is instrumental thinking that drives us to consider that we need ‘tools’ to get past them. In other words, it’s like how carpenters build houses: they construct the structure, but tools are what make it possible. There is no carpenter without tools. Both are essential for success, but if I had to emphasize one, focusing on instrumental thinking is more advantageous. - Joseph’s “just my thoughts”