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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (70714)	7/22/2022 12:28:00 AM
From: Paul Senior	2 Recommendations Recommended By Lance Bredvold petal Read Replies (2) \| Respond to of 79013

Ot. So I will briefly tell you my story: Exit my car to walk into a restaurant. Nicely-dressed guy pulls up beside me and asks, "Sir, in which direction is the Los Angeles airport? I'm trying to catch a flight to Milan." I give him directions, about straight up the road. a couple of miles. He says, thanks, turns to drive away then stops, gets out of the car. "Look", he says. "I'm just returning home to Milan from a couple of weeks here demonstrating our perfumes at Macy's (down the road). "I've got these perfumes. Why don't you take some for your wife. I can't take them on the plane." Opens trunk. "Take as many as you want. There's cologne for men too. Take some." "No I don't want any; I don't use cologne and my wife selects her own." "Well take them as gifts. I don't care. I can't take them back with me." "Ok, I'll take a couple of bottles." (I grab two or three.) Thanks. ....(pause and he turns away. Turns back. "You know I've got some really expensive perfumes here by the top names (mentions designers). They're worth hundreds. Take a bottle for your wife or the men's cologne. How about giving me something for one of them though. Say $20." "Uh no, I don't think I'll use them." "Let me put the one's you've got back and take one of these. You'll be really pleased and be doing me a favor, and letting me repay your kindness." "Uh..." $40 dollars later the guy is getting somewhat angry that I'm not buying more. I leave to go into the restaurant. Wow, classic "Influence". Very impressive. Guy was so smooth (smoother than I write here), and I just didn't have the couple extra brain cells to stop myself. OhwhatajerkIam. Later at home I pull out the "Influence" book. A roadmap of what happened. And of course the perfumes were cheap knockoff's. Smell good though. Well, it would never happen to you guys. You're too astute to be taken in by a con man.

To: Spekulatius who wrote (70714)	7/22/2022 12:43:52 AM
From: petal	Respond to of 79013

The deal or whatever it is will always be around tomorrow, regardless of what they say. And when you buy a stock straight away, feeling that "it might get away from you", it almost always falls quite a bit afterwards, no? That's been my experience, anyway. So I try to "get comfortable with the position" (as Paul Sr. says, I think?) before making it a full position. That means getting to know the stock – the behaviour of it – as well as the company. Many times, this will give one a chance to add to the position on those precious down days where you – when the position is already a full one – wish you could add more. And maybe you do – and then it keeps falling, and you may add some more still. And all of a sudden you're sitting there with a too large position, and might get a feeling of nausea and, in a moment of weakness – or in some cases, sudden insight – rashly decide to sell. I think that I should personally try to get into the habit of always keeping my positions a little smaller than I'd like 'em. Really push my own patience. That way, I'll be around, flush with cash, for those two digit down days where you really want to get in to the stock. Because if you're on the other side of that equation – if you're the one that's already fully invested – that might really play tricks on your mind. You begin to doubt your initial judgment of the stock, and start to overthink, maybe coming up with excuses in order to allow yourself to sell. Sometimes, these may be valid reasons too, and sometimes they are just the doubts you get on the bottom, when it seems to be no end to how low the stock can go. The difference between correcting a real error of judgment and panic selling ("get me out, now! I don't care at which price.") can sometimes be slight. Keeping your position sizes slightly smaller than you'd want them – always keeping the possibility of adding more without becoming "fat" available but unused – may help you keep a clear mind and your emotions calm. Also, it's a good way of keeping cash for new positions.