Lars Tvede gives you tips in the
Euroinvestor Stock School to improve your investor skills. Part
seven is about being honest to your strategy, and identifying good
and bad decisions. Lars Tvede highlights the most important
"We use mental boxes, and treat each investment as
- We try to make money on each trade instead of optimizing the
portfolio as a whole.
- We close our long-term investments after one week if they have
a profit and keep the short-term investments if they make any
- If we have losses on short term investments, we re-name them to
- We throw good money after poor investments, and double down to
"improve our average buy price" in a declining trend.
- We hide our losses with related investments instead of cutting
- We treat each investment isolated and stubbornly keep a loss
giving position in hope of a possible positive return.
- When things turn bad, we focus on how we can trade losses in
the existing portfolio to a profit, instead of focusing on what the
future optimal portfolio would be.
Learn more about investing
You can buy book The Psychology of
Finance, by Lars Tvede here
Or see the latest book by Lars Tvede: Super Trends - Winning Investment Strategies for the Coming
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