What I Learned Losing A Million Dollars
If you find those losses intolerable, deal with them by reexamining your method of analysis and refining your rules, but not while you’re in the market.
Brendan Moynihan • What I Learned Losing A Million Dollars
Without a plan, you fall into one of two categories: a bettor, if your main concern in being right, or a gambler, if your main concern is entertainment.
Brendan Moynihan • What I Learned Losing A Million Dollars
One of the most incomprehensible features of a crowd is the tenacity with which the members adhere to erroneous assumptions despite mounting evidence to challenge them.
Brendan Moynihan • What I Learned Losing A Million Dollars
If a person judges himself by criterion that entail factors outside his volitional control, the result, unavoidably, is a precarious self-esteem that is in chronic jeopardy.”18 Therefore, your self-image should not be a function of what you have accomplished but how you have gone about doing it.
Brendan Moynihan • What I Learned Losing A Million Dollars
Okay, so maybe diversification wasn’t the answer either. Maybe you could put all of your eggs in one basket and still get rich by watching the basket very closely.
Brendan Moynihan • What I Learned Losing A Million Dollars
Each of these men personalized his successes and began to believe he would only ever have success.
Brendan Moynihan • What I Learned Losing A Million Dollars
The next step in decision making is establishing controls, i.e., the exit criteria that will take you out of the market either at a profit or loss.
Brendan Moynihan • What I Learned Losing A Million Dollars
If you have ever had a position on and intended to do one thing but actually did something else, then you were a member of the psychological crowd and made a crowd trade—whether you knew it or not.
Brendan Moynihan • What I Learned Losing A Million Dollars
people make purchases for only one of two reasons: to feel better (satisfying a want) or to solve a problem (satisfying a need).