In his latest book, Unshakeable, Tony Robbins pinpoints the great paradox of investing - it's an extremely simple concept which most of us get wrong. It's why the wealthy tend to get the compounding growth that tends to elude the rest of us.

The financial industry has done a masterful job of playing up the many "beat the market" strategies which sucks us into our innate desire to "swing for the fences" when it comes to investing. Here's the paradox Tony Robbins discovered after interviewing 50 of the world's most financially successful people:

"By admitting to yourself that you have no special advantage, you give yourself an enormous advantage!"

That's right. The smartest, most savvy investors in the world are the first ones to admit that no one - not them and especially not your broker / dealer financial advisor - have any special advantage over the stock market. To attempt to beat the stock market amounts to a fool's errand and it should not be attempted.

"The best way to win the game of investing is to achieve sustainable long-term returns," says Tony Robbins. "But it's enormously tempting to swing for home runs, especially when you think other people are getting rich faster than you!"

"Don't Do Something, Just Stand There!"

Speaking from personal experience, it's our investor psychology that tends to do the most damage. How many of us have panicked and pulled money out during a market crash? I know I have and most of my middle-class friends and family members have done so as well. We "jump in" when the market is heating up, and "bail out" when things are getting ugly.

"The stock market is a device for transferring money from the impatient to the patient," says Warren Buffett. Or, as John C. Bogle famously said, "Don't do something, just stand there!" This advice sounds crazy, I know; especially for us Type-A entrepreneurs who are used to taking massive action when things aren't going our way. But investing is different.

You only memorialize your losses when you sell after a correction. Some of the largest gains in the stock market happened after a massive correction. And, if you pulled out, then you suffered all of the loss with none of the gain (or bounce-back).

As Tony Robbins reminds us, "The financial media reinforces the sense that the markets are just one giant casino - an intoxicating get-rich-quick scheme for speculators!" We feel compelled to take action when a substantially more passive approach is warranted for long-term investing.

The Solution: Automate & Revisit Once A Year

This is where a "set it and forget it" strategy can really pay off. Stop getting all hyped up about the latest stock tip, growth spurt or financial prediction. If the smartest investors in the world fully admit that they don't have any special advantage, why should you believe anyone else?

Tony Robbins sums up some important advice he received from Guy Spier, a renowned value investor who, in 2008, paid over $650,000 to charity to have lunch with Warren Buffett. "Guy suggests checking your portfolio only once a year," says Tony Robbins. "He recommends avoiding financial TV entirely. And he suggests that you disregard all research produced by Wall Street firms, recognizing that their motive is to push products, not to share wisdom!"

Instead, follow Tony Robbins "Core 4" which I recap in my previous article, "Tony Robbins: How to Retire Rich." By automating your "wealth tax" (i.e. auto-deducting a percentage of your salary and putting it into your investment account) and dollar-cost averaging your investments into minimal fee index funds, you are investing for the long-term (and not trying to "beat the market").

Investing should never feel like gambling. If you want to retire rich, you need a sound strategy and the right investor psychology to stay the course even when things get bumpy. A great first step is to pick up your copy of Unshakeable, so that you can discover for yourself what so many of us have been doing wrong when it comes to managing our own retirement and financial freedom.

And if you love hearing from him directly, feel free to watch my interview with Tony Robbins, as he talks about all of this in his own words.