Trading to Allow Long-Term Trends to Happen Using IRR to Determine When to Sell

Avoid Emotional Trading

When management really makes us angry, we put the file in a drawer for a while and just don’t do anything. We try not to sell just because we’re angry. If you sell when you’re angry, you can imagine everybody else who sells that way reaches the point of exasperation at exactly the same time. That’s the kind of thing that creates at least a trading bottom. Better to sit on it for some time, and even if you still hate what the company’s doing, you’re probably going to get a better chance to get out.