3 Years ago, I was told by my friend to buy property in a rapidly growing area. despite my friend plea to buy it, I choose not to. I choosed the most comfortable option. Today, the house value almost doubled and since then I had almost regretted my decision.
My thinking back then was that I thought it was too risky but I certainly knew the house would have appreciated - but I never knew it would grew a lot more.
The reason I thought it was risky was because I choose the long term pain instead of the short term pain. it was the most comfortable thing to do - doing nothing.
I read a financial book about great market traders called market wizards. it explained the most successful stock traders are usually doing the opposite what the general heard are doing.
For example, if the market would go down, the crowd would usually bet it would go up, thinking there is a lot of value in the stock.
Whereas, the great traders would do the opposite, bet it would go down. most people would feel really uncomfortable betting the market would go down. instead, they would choose the most comfortable option, bet it will go up. This is usually the worst option because the chances the market will fall is greater.
This can apply in anything in life. eg are you currently in a bad relationship and in the future you know it won't lasy. would you choose the long pain - hoping that he/she would change, or the short term pain?
