25 March 2011

Ajit Jain : Distinguishing outcome and decision making

Screenshot from CLSA report (click to view)

Same for trading. Focus always on making the right trade decision and do not let its outcome affect emotions. In other words, do not be too sad if right decision results in loss. And do not fool yourself when a bad decision leads to a profit.


Anonymous said...

This principle is one of the key teachings of the Gita (the Hindu scripture): Focus on doing your duty right, do not be concerned with the fruits thereof. (I'm paraphrasing, not an accurate quote.)


Taichiseal said...

Very wise.