"As a matter of fact, your happiness depends far more on the number of instances of positive feelings, what psychologists call "positive effect", then on their intensity when they hit. In other words, good news is good news first. How good matters rather little. So to have a pleasant life you should spread those small effects across time as evenly as possible. Plenty of mildly good news is preferable to one single lump of great news. The same is property in reverse applies to our unhappiness. It is better to lump all your pain into a brief period, rather than have it spread out over a long time."

at any point in time, the richest traders are often the worst traders. This, I will call the cross-sectional problem: At a given time in the market, the most successful traders are likely to be those that are best fit to the latest cycle. This does not happen too often with dentists or pianists — because these professions are more immune to randomness.

As an empiricist (actually a skeptical empiricist) I despise the moralizers beyond anything on this planet: I still wonder why they blindly believe in ineffectual methods. Delivering advice assumes that our cognitive apparatus rather than our emotional machinery exerts some meaningful control over our actions. We will see how modern behavioral science shows this to be completely untrue.