I was alarmed to see that the value of my investment had plummeted more than 3%. I was not ready for the feeling of distress and the immense temptation I had to sell my asset.
This impulse is intense. It is a constant nudge. An itch I am finding hard to ignore. However, since I am trying to be less rash when it comes to making decisions, I will wait until the value of my asset reaches the lower limit I have set for myself (I learned from my online class that this helps letting go of stock easier). I fear falling into the trap of attaching too much value to my stock to the point where I am unable to let it go.
I am aware that I may be responding to sporadic noise and not information that is impactful. However, because I have one asset, I am keeping a close eye on the security. Watching the daily fluctuations is a highly stressful situation. Despite this, I have no choise but to endure this until my portfolio is more diversified.
Another impulse I am experiencing is the urge to buy another stock to attempt to tip the scale into a more balance position. Where this illogical thought is coming from, I do not understand. As a way to deal with my impulses, like I said before, I have ordered a stock, which I have to cancel in a few hours.
As a way to learn more about impulses and control, I have decided to learn about making decisions under uncertainty. I have already borrowed Daniel Kahneman, Paul Slovik and Amos Tvesrky’s Judgment under Uncertainty: Heuristics and Biases from the university library. Hopefully knowing more about my flaws will help me be more reasonable in making decisions.