This year marks the 20th anniversary of my first investment transaction.
We always remember the losers better. Because thousands of years ago, when we saw a pretty flower and a lion, we tended to focus more on the lion for obvious reasons. How cruel nature really is, making us focus on the bad; A recipe for unhappiness.
Thousands and thousands of transactions later, these are the most important things I have learned:
If you find yourself worrying about your positions in the middle of the night: get out in the morning. At any price. This is important. You are either using too much size (too big a position for your portfolio or your mental state) Or your subconscious doesn't agree with your position.
Remember: you can always get back in!
A stock is never trading too high to buy or too low to sell. It can always go lower or higher.
When a journalist complimented Paul Tudor Jones, one of the best performing investors of all times, how he bought the exact low in the S&P 500 somewhere in the nineties. He replied: Thanks, I finally got it right on my eight try.
