Truisms

Scouring for confirming views: Jason Zweig once wrote that, “…people are twice as likely to seek information that confirms their beliefs then they are to consider evidence that contradicts them.”  Do you carefully considering opposing views?

Easily shaken out by fluctuations:  How can you have faith to ride out short-term fluctuations without the confidence of a full vetted idea?  While there is nothing wrong with having tight stops and loss disciplines, it is a whole lot easier to be shaken out if you don’t trust the idea.

Lack of conviction: What is the point of holding a stock that you don’t have high conviction in?  I’d rather own an index fund than a stock I don’t love.  Investors lukewarm on a holding end up becoming “long-term investors” as they are inevitably under water.

Loss Aversion:  Does your original investment thesis still hold?  If not are you only holding as you are reluctant to take a loss?  Cut bait and get out.  These situations lead to investors taking on more risk due to their loss aversion.  http://pragcap.com/the-road-to-investment-losses