No. of Recommendations: 1
In investing, we're often our own worst enemies. Being aware of the pitfalls helps us avoid them, or at least begin to minimize them. And that can only help our investing results.


In studying about investing, I noted mention was of this pattern. My solution: to make improving my choices the goal, and choose to ignore the gain/loss factor except as a feedback factor. When prices are rising, I look forward to sales, when dropping, to buys.

As with Templeton, my primary tools are a watch list and limit orders. The watch list is on a spreadsheet, and has a column that calculates a ranking relating to likely best/worst buys/sales from the inputs. Sorting on this gives a list with the best probable buys at the top and best probable sales at the bottom. Then prices are according to the rank so that the best sell/buy limits are closest to the current price for that stock. The stocks smoothly set prices from one end to the other. Each week data is updated, and when there is an action, a large jump away from current price occurs for the price column involved, whether buy or sell. If there is no action, a small adjustment closer is made. Sooner or later there is some action, and the odds are improved.

Primarily this keeps me from taking impulsive actions. Putting stocks on or off the watch list is a different activity than setting the price and is done on fundamentals.
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