Body Surfing and Investing

I read an article by Geoff Davey with FinaMetrica that does a good job of explaining behavioral finance. The core of investing is risk tolerance which is domain specific, there being five domains: physical, social, health, ethical and financial.

As an experienced surfer I am very confident about my surfing decisions. Interestingly, though I am also an experienced investor, I am less confident about my investing decisions. In my view, it is easier to understand the surf as it relates to my physical self than it is to understand investment markets as they relate to my financial self.

The article is a quick read that can be found here: Body Surfing and Investing

Do you really understand your appetite for risk in all domains?