Improving Your Decisions

December 4, 2008 at 7:11 am · Filed Under Educational 

What if I told you I had a trick that could help you make better decisions, not just with stocks, but with everything in life?  Okay, maybe it’s a pretty obvious thing, but it’s surprising how few people actually do it.  Are you ready for the big secret?  Here it is… think things through before you make your decisions.  "That’s stupid," you say, "everyone thinks about things before they make their decision."  True, you may think about things, but do you really quantify your reasoning behind each choice?

How do you "really quantify your reasoning" though?  The easiest way is to write a blog!  I’ve said before that I would post on my blog even if nobody read it, and I actually mean it.  It doesn’t matter how well you write or what you end up saying.  The important thing is that you have to think about what to write.  Just trying to jot down a few sentences about a stock you like can be a very enlightening experience.  There have been numerous times that I liked a stock, sat down to write about it, and then realized that I really didn’t like it so much when I had to rationalize it in a public forum. 

It also works for things beyond just stocks.  Thinking about leaving your wife for the stripper down the street?  Go write that blog post first and see if you can come up with a solid appraisal of the situation.  If you end up with a well thought out 10,000 word post that backs your decision to leave, at least you know you’re making a conscious decision to do it.  Chances are though, once you sit down and are forced to formalize your arguments you’ll realize it’s a stupid thing and you would probably be embarrassed to have any of your reasons read by everyone you know. 

I also have a selfish reason for this tip.  I have a lot of friends who are very smart and know a lot about stocks, and I want to be able to see what they’re thinking too.  But even if you don’t want to make a public blog, a private journal can also do the trick.  You’ll be amazed at how much your opinion can change the first few times you try it.  And this doesn’t even go into the benefits of having a historical record of your thoughts, but that’s what I’ll be talking about next time.  So set forth, start your blog, and make sure you give me the address.

Comments

One Response to “Improving Your Decisions”

  1. Lam Doan on December 5th, 2008 11:21 am

    You have at least one person who reads your blog everyday (me). Also, I did blog about leaving my wife for two strippers down the street. I didn’t leave my wife, but I did go for the two strippers. Brilliant! Haha. Your post does inspire me to start a blog though…