In this video clip from “Man on Fire,” Pita is a competitive swimmer. Creasy is a highly trained operative, currently serving as Pita’s bodyguard. At a previous swim meet, Creasy observed that Pita was “the slowest off the block, but one of the fastest in the water.” He further observed the reason Pita was the slowest off the block was that she flinched at the sound of the gunshot.
This is a problem that Creasy can train out.
Creasy must reprogram Pita’s instincts and reflexes. Rather that fear the sound of the gunshot, Creasy will train Pita to concentrate and welcome it. “The gunshot holds no fear.” “The Gunshot Holds NO FEAR!” “You are a prisoner of this block until that sound sets you free.”
In like manner, Benjamin Graham attempts to reprogram the novice investor in Chapter 8 of his book, The Intelligent Investor, “The Investor and Market Fluctuations,” that the market holds no fear, “The Market Holds NO FEAR!” Rather than fear market fluctuations, which is the natural, instinctual response, the intelligent investor can be reprogrammed and trained to expect and welcome market fluctuations as an opportunity to buy wisely when prices fall sharply, and to sell wisely when they advance a great deal.
As a boxer, I had to be trained to keep my eyes open when punches were coming at my face. Only then could I maintain composure, respond correctly, defend myself, and counterpunch effectively.
An investor can likewise be trained to maintain composure in the midst of market fluctuations, defend gains by selling into market exuberance, and pick up bargains by buying into times of fear.
When Pita overcame her fear of the gunshot sound, she was able to swim her best time, and triumphantly declare, “I’m tough, Creasy.”
Creasy gently corrected her, “Yeah? There is no such thing as tough. There’s trained and untrained. Now which are you?”
“Trained,” Pita understands.
Unscrupulous advisors will prey on your fear, build up your fear, and use your fear against you to sell you products you don’t need. Shame on them.
Let’s train out your fear so you can master the markets.
The market holds no fear.
The market holds NO FEAR!