Following is a great lesson I am copying and pasting from an article I just read.
We all need to keep this in mind to be successful investors over time:
A big error when investing is price anchoring: “I really want to buy this stock, but it’s at $25, and it was at $21 three months ago, so I’ll wait until it gets back down there before I buy,” or “I know that I should sell this stock but I bought at $34 and I want to wait until I can get back to $34 before I sell.” The stock has no memory. It’s at the price it’s at. The question is: what do you want to do with it now.
User comment: Agreed. Sometimes it’s good to remember this principle over our daily psychology
