It sounds kind of wishy washy, but actually having someone to keep your innate tendencies in check is a really good idea.
You see humans are irrational. Yes, it is true.
No matter how much modern financial and economic theory says market participants will act in a rational way in light of their own best interests, it is just not true. Do people smoke? They know that it is detrimental to their health but they do it anyways. Do people engage in risky behaviors of all sorts? You bet they do! They know that it is bad, but still do it anyway.
The investment markets are no different. Many market participants act irrationally, but don't even realize it. This is why behavioral finance is so important and having a financial therapist is in your interest.
Behavioral finance has studied and defined a number of irrational behaviors people do. The first step in resolving them is to know what they are and identify situations where they are occurring. The next step is the hardest step. The investor has to "train" themselves to recognize these behaviors and consciously avoid doing the "intuitive" actions which are often irrational and detrimental to their financial “health”. That is easier said than done!
A financial therapist can be your saving grace.
A doctor cannot stop you from smoking, but if he keeps telling you not to smoke, maybe it will sink in eventually. Some will learn and be better for it. Remember how your parents said “If I told you once, I told you a thousand times”? Somehow, when you grew up, you found yourself doing EXACTLY what your parents were trying to tell you to do. (Although, it almost took the parting of the red seas to emblaze this into your brain!)
The same goes for irrational financial behavior. You need to either get a financial therapist or start learning about behavioral finance today. This knowledge can be the "tipping point" between financial success and failure!
