While I was reading “What I Learned Losing A Million Dollars” there was a destructive thought process that states:
“Once I realized I was breaking the rules but still succeeding, I thought rules were for everybody else and that I could break them and still succeed.
What this means is that sometimes I was breaking the rules whether I knew it or not, and that one time I was going to be wrong (and we will all be wrong sometimes) but not accept or believe it. That approach ensured that when the loss occurred, it would wipe me out.
If you occasionally break the rules and still have an unbroken string of successes, you are likely to compound the problem because you assume that you are better than other people and above the rules. Your ego inflates, and you refuse to recognize the reality of a loss when it comes. You assume that you will be right. You assume that even if the market is against you, it will come back. Well, if I had an ego problem at one million dollars, what kind of problem would I have had if I had ridden through the valley of death and cheated death? If I had survived the loss and the market had gone on to make money for me, my ego problem would have been much worse.”
Are there areas of your life where you are in denial, or think the rules don’t apply to you, that are worth revisiting while you can still rectify things?