The topic of today's blog is not so much portfolio control as it is self control!
No one else knows better than you!
If you haven't already, you'll find out soon that when it comes down to talking about the market, especially stocks, everyone is an expert.... everyone has an opinion that they are more than willing to feed you.
Some will tell you that they think the market is going for a crash, some will tell you its going through the roof, some will give you stock tips and 100 reasons why its sure to make you money. The sad part is that the human mind with all its complexities is a vulnerable emotional mushy machine! Add the potential for making money into the future and you have a potential for disaster. When it comes to trading, you are the only one who knows best. Take it from a guy who's made all the mistakes there is to make when he started out trading.
There are people who know what they are talking about and their views will be profitable, but more than 80% of time they will lose you money. What is worst is not that you lost money, but that you let someone influence you and didn't make the decision on your own.
So, stay away from stock tips. Or at least do your own research on what you've heard.
As a side note, what I've found to be very interesting is that people's advice is governed by their own confirmation behavior. This is a very strong human emotion. The people who will tell you the market is going up, have accumulated long positions. The ones that will tell you the market is going down, have short positions. Their advice is their own rationalization of their positions.
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