Fixation, for me, is when my mind anchors to an attractive stock from Company A and uses it as a scale to measure the worth of Company B. My judgement becomes distorted and biased and I cannot seem to research untouched by the impression Company A gave me. It seems that I have already made a choice before I have already gone through all the options I have. It’s an immense flaw in judgement that I would like to get rid of.
I have gone through the Australian Stock Exchange (ASX) website to compile all the health care stock that are listed on it in order to choose one that trumps all of them. I don’t know if this is the right way to do research, but I have yet to come across a website that mentions the research processes that experienced investors use to sort through the many companies they hear of.
I am going to deviate from the topic of this article and clarify that my goal, for the moment, is to try everything until I find a method that works for me. I want to be more fluid in learning and be able to abandon a strategy that does not work for me. I believe everyone should not to be too rigid with their plans. If something does not work, it is justified to try something new. Being obstinate may be a flaw in this world.
After compiling all these companies, I highlight the ones that seem most appropriate to me and focus on them. I visit to their websites and learn everything I can about them. (Honestly, it takes me a while to read about one company because I have to refer to my fundamental analysis notes repeatedly.) When I come across Company A, with its attractive financial statements, my mind fixates on it and even when I move on to Company B and attempt to be more rational in gauging its worth, Company A is still stuck on my mind. It’s like that prediction a psychic tells you that you try to rebel against but end up molding yourself around.
I hope with time I get better with compartmentalization and sorting the longer I do this. I may have to chase rationality throughout this process.