Have you ever asked yourself this: How can I control myself when I feel the irresistible need to break my rules about how to invest in the stock market? That question pertains to the “hot-cold-empathy gap”, where we say to ourselves in a calm (= cold) moment: “The level of risk that I want to take is bound on one side by gains of up to 15 percent and on the other, by losses up to 10 percent”. Nevertheless, when we lose 5 percent of our money, we panic (= hot) and we sell everything! When we view such cases, we usually think that the colder, more rational voice in our head (that set up the initial risk level and portfolio choice) is the correct one, whereas the voice that panics—while reacting to short-term market fluctuations—is the one that causes us to stray. From this perspective, there are two types of solutions available: The first is to get the “rational” ......