SIDELINE ADJUSTMENTS TIP #4: WALK AWAY FROM THE CRAP TABLE!
WALK AWAY FROM THE CRAP TABLE: Move to the sidelines so you can refresh your spirit and refine your investing system while waiting for your next good buying opportunity.
Once you cash out on your stock market positions, be sure to immediately remove yourself from the game; as a result, you’ll be less inclined to second-guess your recent selling decisions. Realize that selling stocks early into market strength will often have you watching them continue to go up without you being along for the ride.
The easiest way to handle this anguish is to get away from the stock market and not monitor its performance for a healthy period of time. Don’t return to the stock market game until your emotional attachment to previously held positions has been significantly diminished and your mind is clear enough to play again from a well-balanced perspective.
Comment: Always respect how powerful the fear of missing out exists in gambling and the stock market. When you watch either activity continue upwards on the path to easy money, it’s hard not to get sucked into the action. As any savvy gamblers can attest, the smartest thing to do when you come to a decision to cash out (or sell in case of the stock market) is to get the heck out of the casino as quickly as possible.
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“Investments are like trains, and if you miss one, don’t worry because another one will come down the line.”
Charles Munger ~ Vice-Chairman of Warren Buffett’s Berkshire Hathaway