Stupid, Stupid, Stupid

by billb 14. October 2008 09:31

I've been very good about following my plan.  I've remained fairly emotionless during the recent volatility and scooped up shares the whole way down.  Yesterday I did something very stupid.  I'd be making very good progress on the upswing (as I'm sure everyone had).  So I got nervous that it wasn't going to last and put a hedge in place.  This was completely against my plan.  Then I got on a 2 hour long phone call that took me past the market close.  On my way home I realized just how stupid I was.  I lost sleep over it, so I knew it was wrong.

I closed it out first thing this morning at a loss.  I probably could've waited for the pullback, but good discipline says don't try and correct a mistake, you'll likely only make it worse.  I can already tell you, I feel a lot better.  Psychologically it still stings, but there is no longer a knot in my stomach.  The very next thing you must do (or at least I must do) is remove that quote from your display.  Almost without failure, the mistake will move back in your favor and you'll get to kick yourself twice for the same mistake.

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