Frank Henry knew a man who actually managed to talk himself into being happy when his speculations slumped. If he bought something and the price fell, he would buy more and average down his cost. The lower the price went, the more he would buy and the lower his average cost would fall and the happier he would become. This was one fancy psychological trick, but it kept him content. It didn’t make him rich, however. He got stuck in some bad investments for years, continually averaging down and genuinely believing he was being smart.
