I’m still pretty new to investing. Intend to primarily invest in long term positions.
That said had a great result this week on a short term position. I know more about the company than just about any other, understood the dynamics of the unique situation it was in this week, knew that today would be the day where if my read was right I would lock in a profit… but in terms of how I did quite as well as I did in terms of the precise timing of the sale and therefore the level of profit, frankly that was down to luck. At the wrong time of the day, I’d have made less than half. Therefore I’m not getting carried away, my primary aim remains to invest in long term positions, with a long term purpose. I know that this will be more profitable and less risky in the long run.
Nonetheless, something goes well and it’s natural to want to do more of it. I’ve spent about half an hour trying to figure out which companies I feel that I know well enough that in similar circumstances I’d consider similar action. The truth is, I could count on one hand the number of companies I currently understand better than that one, but I then found myself trying to rationalize “well I know this one well enough”.
So my question is, if you do something outside of what you primarily intend to do, and it goes well, how do you separate looking to learn the lessons from it (which is just good common sense whenever you have a big success or a big failure), from the instinct to do more of something because the last time went well?