In other words, no matter how much you learn about market behavior or how smart an analyst you become, it is impossible to perfectly predict the market.
If you are afraid of making a mistake or suffering a loss, you cannot escape the negative effects that this fear has on your ability to act objectively and without hesitation.
That is, you become uncertain in the face of continued uncertainty.
In the world of investing, uncertainty of outcomes is a harsh reality.
Unless we learn to fully embrace uncertainty, we will consciously or unconsciously try to avoid many possibilities that we find painful.
And along the way, you'll make countless costly mistakes.

---From "Chapter 1_ Fundamental Analysis, Technical Analysis, and Mental Analysis"

The market is like a 'flow' that is constantly moving.
The market never stops or waits.
Even when the market is closed, prices move.
There is no rule that says the opening price of a day must be the same as the closing price of the previous day.
Yet, we haven't prepared ourselves to operate effectively in this "boundary-less" environment.
Even gambling has a 'built-in structure'.
So in some ways, gambling is much less risky than investing.
For example, if you play blackjack, the first thing you have to do is decide how much money you want to risk.
Because you can't start the game without making this decision.
However, in investing, there is no device that allows you to estimate the level of risk in advance.
You are standing in an environment where virtually anything can happen.
Only investors who consistently achieve success determine the risks involved in investing.
People who fail at investing fail to accept the reality that even if they seem to be doing well at the moment, they may actually be losing money.
So they fall into a distorted logic that makes them believe, through countless justifications and rationalizations, that they can never fail.
As a result, they do not even try to know in advance about the risks of the investment.
---From "Chapter 2_ Accept the Temptations and Risks of Investment"

By investing without self-criticism or regret and embracing the endless flow of opportunities the market offers, you're in the best "frame of mind" to act for maximum profit and learn from past experiences.
Conversely, if we perceive market information as painful in any way, we will likely try to avoid the pain by consciously or unconsciously blocking ourselves from recognizing such information.
In the process of blocking out such information, you are further and further distancing yourself from the opportunity to become rich.

Moreover, if you expect the market to do something for you or believe that the market owes you something, you will view the market hostilely.
You might feel the urge to fight at this point, but what exactly are you fighting against, and who are you fighting against? The market is clearly not fighting you.
Yes, that's right.
The market wants your money, but it also wants to give you as many opportunities as possible.
When you fight the market with hostility, you're really just fighting the negative consequences of not fully accepting that you need to take full advantage of the opportunities the market presents.
---From “Chapter 3_ Take Responsibility for Your Investments”

Yet, most investors fail to adhere to this basic principle.
Why can't they act in an absolutely and perfectly rational manner? Ordinary investors fail to define risk in advance, cut losses, or systematically realize profits.
He 'does not believe' that such things are necessary.
Why is this? Because we mistakenly believe we already know what will happen next based on what's happening "right now."
If he thinks he already knows what's going to happen, there's virtually no reason to stick to these three principles.
By assuming that 'I know', he will make every investment mistake he can make.
---From “Chapter 6_ Look at it from the market’s perspective”

I always ask my workshop participants a difficult question about the paradox of investing: "How can investors learn to be both rigorous and flexible?"
The answer to this question is this.

“We must be strict with ‘rules’ but flexible with ‘expectations.’”
We must strictly adhere to the rules we have set to gain confidence that they will protect us now and in the future from the environment that has boundaries.
On the other hand, in order to perceive the information the market conveys with clarity and objectivity, we must be able to flexibly change our expectations.
But when it comes to this issue, typical investors behave quite the opposite.
In short, be flexible with rules and strict with expectations.
Interestingly, the more stringent expectations become, the more the rules are bent, broken, or disregarded to get what the market offers.

---From "Chapter 7_ Think Probabilistically"

Remember that every thought, word, and action serves to strengthen the belief you have in yourself.
If we repeatedly hold negative self-criticism and develop the belief that we are a "mess," that belief may find a way to manifest itself in our thoughts, truly making us a mess.
In other words, even if we say what we believe about ourselves or others, our actions may be excessively self-defeating.

If you want to be a consistent winner, you must not accept mistakes and errors in a negative context, as most people do.
You need to be able to observe yourself to some degree, but if you are likely to feel emotional distress when you catch yourself doing something wrong, objective observation becomes difficult.
If you find yourself in that situation, you have two choices:

---From Chapter 11: Think Like a Top Investor