Why People Resist Process (And Why That’s a Huge Mistake)
Pre-Flight Check: What’s Your Investment Strategy?
Aviators don’t just hop into the cockpit, fire up the engines, and hope for the best.
Every flight—whether it’s a short hop or a transcontinental journey—follows a structured process:
- Pre-flight checklists
- Weather analysis
- Fuel calculations
- Contingency planning
Each of these steps ensures that pilots aren’t just flying, but flying safely and efficiently.
Now, let’s shift gears.
What if I asked you to explain your investment strategy with the same level of rigor?
- What’s your process for selecting investments?
- What risk management measures do you have in place?
- What’s your contingency plan if the market nosedives?
Most people, when pressed, don’t have clear answers.
And that’s a problem.
Because investing—like flying—is not about intuition, luck, or gut feelings. It’s about having a disciplined process that gets you to your financial destination safely.
But from my observations, most investors are flying blind.
The Illusion of Control: Why Most Investors Are Just Guessing
Let me ask you:
- Have you ever bought a stock because it was in the news?
- Have you ever sold an investment because you got nervous during a market drop?
- Have you ever waited on the sidelines because you thought a crash was coming?
If so, you’re not alone. But here’s the uncomfortable truth:
That’s not investing—that’s gambling.
And the data proves it.
The Dalbar Study: How Emotion Kills Returns
The Dalbar Study, one of the most comprehensive analyses of investor behavior, tells us that the average investor dramatically underperforms the market.
Why? Because most investors make decisions based on emotion, not logic.
- They buy high when markets are euphoric.
- They sell low when fear takes over.
- They constantly tinker with their portfolios, chasing performance.
The result? Instead of earning the 8-10% annual return the market historically provides, the average investor barely achieves 2-3%—less than inflation.
Think about that: you could fly at 500 knots, but instead, you're taxiing down the runway thinking you're making progress.
Why Smart People Still Make Dumb Investment Decisions
Now, I know what you’re thinking.
"That’s not me. I’m educated. I make rational decisions."
But here’s the kicker—your training as an aviator doesn’t make you immune to human psychology.
In fact, the same cognitive biases that impact everyday investors also affect pilots in the cockpit.
Let’s break them down.
1. Loss Aversion – Why Pain Feels Stronger Than Gain
If I handed you $100, you’d be happy.
But if I took $100 from you, you’d be twice as upset.
This is why investors panic when markets drop.
- A 20% portfolio decline feels catastrophic, even if history tells us markets recover.
- The fear of loss outweighs rational analysis, causing investors to sell at the worst possible moment.
But here’s the truth: temporary turbulence is not the same as a crash.
2. The Dopamine Rush – The Thrill of Hot Stocks
Ever had that feeling when a stock you picked jumps 20%?
That’s dopamine, the same chemical behind gambling addiction.
This is why people chase speculative tech plays, meme stocks, or cryptocurrency. It’s not about long-term financial success—it’s about instant gratification.
Aviators know that chasing an immediate thrill—say, hot-dogging a maneuver at low altitude—can be fatally short-sighted.
The same applies to investing.
3. Overconfidence – Thinking You’re Smarter Than the Market
Most pilots have a high degree of confidence—and for good reason. You’re trained, disciplined, and capable.
But in investing?
Even the smartest minds—hedge fund managers, PhDs, and Nobel laureates—struggle to consistently beat the market.
And yet, the average investor still believes they can outthink, outguess, or outmaneuver an entire system fueled by trillions of dollars, cutting-edge technology, and machine learning algorithms.
The result?
- Investors make concentrated bets instead of diversifying.
- They try to time the market, thinking they can predict downturns.
- They jump in and out, convinced they know something others don’t.
And just like that, their financial plan crashes before it ever takes off.
Why People Resist Process (And Why That’s a Huge Mistake)
Now, let’s talk about the elephant in the room.
Even after everything I’ve said, some of you are still thinking:
"I don’t want to follow a rigid investment process."
"I like being in control."
"I’ll just hire someone to do it for me."
I get it.
But let me challenge that thinking.
Would you ever trust an unstructured, emotional approach to flying?
Would you skip your pre-flight checklist? Ignore your instruments? Rely on gut instinct rather than training and data?
Of course not.
Yet, that’s exactly what most people do with their investments.
They prefer guesswork over structure, reaction over discipline, and gut feelings over historical data.
And then they wonder why they’re always stressed about money.
The Bell Curve of Investors (And Why Most People Lose)
Think of a bell curve.
- On the left, you have reckless investors—those who make uninformed bets and lose big.
- In the middle, you have the average investor—sometimes winning, sometimes losing, but never really gaining ground.
- On the far right, you have structured investors—the ones who follow an evidence-based plan and build real, lasting wealth.
Most people cluster in the middle. And that’s the problem.
If you want to be on the far right—where financial security and freedom exist—you need a structured investment process.
Not a hunch. Not a guess. Not a prediction.
A process.
Your Call to Action: From Hoping to Planning
So, I’ll ask you one final time:
Are you gambling, or are you investing?
If your decisions are based on emotion, you’re gambling.
If your process isn’t backed by data, you’re gambling.
If your strategy changes with the latest headline, you’re gambling.
But if you build a structured, disciplined, evidence-based investment plan, you’re investing.
And that’s the difference between a lucky streak and real financial altitude.
So—will you fly with a plan? Or will you keep hoping and guessing?
The choice is yours.
Disclosure: This article is for informational purposes only and does not constitute personalized investment advice. Tax rates and laws may vary and are subject to change. Consult a financial advisor or tax professional for guidance tailored to your situation.
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February 2025