Some are controllable and we will be able to control them within our means, while the others are uncontrollable.
I will be able to control my emotions to prevent myself from over reacting.
I will be able to control my decisions and body to do something.
BUT..
I'm unable to control the speed of another car and the chances of getting into an accident if the driver is reckless. But, I'll be able to stay vigilant and alert to the road conditions to prevent the odds of getting into one.
I'm unable to control another person's reaction when this person is filled with emotions. But what I can do is to console this person and possibly change the emotions they have in them, which might prevent the person from doing something silly.
I'm unable to control other's decision and body if they're going to do something. But, similarly, I'm able to provide help by all means to change the fact.
It can applies to Mr Market too!
Importantly, we have to first understand ourselves and define the controllable and uncontrollable in each situation.
I might be speaking a little too early today especially when it come to Mr Market's term as I'm relatively new.
But defining the controllable, I'll see things such as emotion, decision, portfolio sizing, risk appetite etc.
How about the uncontrollable? Market movement, the rationality of Mr Market, Volatility, price movements, upcoming company's performance etc.
Prior to making any decisions, it's important for us to do some homework to get a clearer picture, else it makes no differences from gambling or speculation.
I could use several tools along to help me with that. Upon seeing a clearer picture, I will then need to control my emotions and not act irrationaly.
As humans, if we are always thinking about the uncontrollable factors affecting us. We will soon be affected by things that are controllable.
If I'm constantly affected by the price of a particular counter and losing sleep over it, it's likely that I'm overly-invested.
And having that said, things such as my emotions and decision will make it's way to the door.
This is when we're going to be affected by things that are controllable.
It's important to make plans and be prepared for contigency! It's about the probability and not certainty.
How good would it be if we've a controller all to ourself?
