Marks quotes Feynman that physics would be harder if electrons had feelings, unlike human investors.
“Richard Feynman, the great physicist, said that, physics would be much harder if electrons had feelings. We walk in the room, we turn on the light switch, the lights go on every time.”
Marks argues people's asymmetric response to gains versus losses warps their ability to bear necessary risk.
“Most people care a little about a dollar made and a lost. Exposing yourself to the risk of loss is integral in trying to have a good investment return.”
Marks notes investors sell more when prices fall, opposite of normal behavior in every other walk of life.
“In every other walk of life, we buy more when things go on sale. In the markets, we sell more when things go on sale.”
Marks describes how emotion drives buying when prices rise and selling when prices fall.
“Emotion, what we call human nature, tends to get us excited when things go well. And as things go well, prices prices rise rise rise and people wanna buy more and more and more.”