You cannot control:
Markets - what markets will do
Outcomes - the outcomes from your actions
Returns - The returns you will receive
You can control:
Your behavior relative to the markets
The process you use for making decisions
The amount of diversification you want
One of the most important investment lessons for either a discretionary or quant investor is knowing what you can control and what is out of your control. You may form expectations and forecasts that you may think you control, but the end result is still out of your control. The focus has to always be on the process. If you have a better process, you will have better outcomes.
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