In modern society, our lives are filled with countless choices and decisions. From what to wear after getting out of bed in the morning, what to have for breakfast, to the route to work and every decision made during work, these seemingly trivial choices are actually quietly consuming the 'decision power' in our brains. This phenomenon is referred to by psychologists as 'Decision Fatigue.'
The scientific principles of decision fatigue
Research shows that the human brain consumes a large amount of cognitive resources during daily decision-making. These limited resources are similar to a smartphone battery, gradually depleting after a full day of use. Every choice, big or small, requires us to invest a certain amount of mental energy. When this energy is gradually depleted, the quality of our decisions declines, becoming more impulsive and simplistic. For example, judges' rulings made in the afternoon are often harsher than those made in the morning because their brains have become fatigued from a full day of hearing cases, making the decision process more blunt.
The 'decision-saving method' of successful individuals
To avoid unnecessary decision-making that consumes excessive mental energy, many successful individuals adopt a 'decision minimization' strategy. Steve Jobs wore the same black turtleneck every day, while Mark Zuckerberg insisted on wearing gray T-shirts. These seemingly 'personalized' clothing choices are actually meant to reduce unnecessary decision burdens, reserving limited decision resources for truly important business decisions. By simplifying decisions in daily life, they can maintain enough energy to tackle more complex and challenging tasks.
Seemingly relaxing, yet exhausting: The psychological trap of short videos
Modern technology products, especially smartphones and short video platforms, seem to provide us with opportunities for relaxation and entertainment. However, from a psychological perspective, these activities actually consume our decision-making ability invisibly. Every time we click 'continue watching' or 'like,' and every time we choose to 'share' or 'comment,' it accumulates as a micro-decision. Over time, these small decisions pile up in our brains, leading to what is called 'decision fatigue.' Hence, many people feel more exhausted after binge-watching short videos all night than after completing a full day's work.
In the cryptocurrency space, the situation is similar. Altcoins, meme coins, and on-chain investment opportunities abound, and each investment decision requires a significant amount of mental energy. Investors, when faced with countless projects, must not only react quickly but also make constant choices. This continuous decision consumption, coupled with high-frequency market fluctuations, makes decision fatigue particularly evident in cryptocurrency investing.
The consumption of decision power among the poor
Decision fatigue not only affects the quality of our daily decisions but has particularly profound impacts on impoverished groups. The daily issues faced by the poor, such as price comparison, calculating living costs, and weighing resource allocation, consume a significant amount of their 'decision power.' In this situation, when they need to make major decisions concerning their future and success, their brains are already exhausted and unable to make efficient decisions. This is why many people in poverty often rely more on intuition and short-term gains when making significant life decisions, neglecting long-term planning and rational decision-making.
How do investors cope with decision fatigue?
As an experienced investor, decision fatigue has a profound impact on your investment decisions. Maintaining calmness and rationality in the face of market fluctuations and uncertainties is crucial. Avoiding excessive consumption of decision power due to daily trivialities can help you maintain a clear mind when making investment decisions. Here are several effective strategies:
Simplifying decisions in daily life: Try to reduce irrelevant choices, such as food and clothing, by establishing fixed selection criteria to save your decision resources.
Set clear investment goals and rules: Before investing, establish clear objectives and risk management strategies to avoid impulsive decisions due to short-term market fluctuations.
Take regular breaks and recover: Investors need to ensure their brains have enough time to recover. Reasonably arrange work and rest to avoid prolonged decision fatigue impacting judgment.
Avoid information overload: In an era of information explosion, avoid over-focusing on irrelevant market news and short-term fluctuations. Set up information filtering mechanisms to maintain focus on key information.
Conclusion
Decision fatigue is a potential psychological trap that affects the decision quality of each of us, whether in life or in the investment field. Understanding this phenomenon and adopting effective strategies to cope will help us reduce unnecessary consumption and make more rational and long-term decisions. For investors, maintaining clarity and rationality in decision-making is not only key to personal wealth management but also an important secret to achieving success.
