“Patience is bitter, but it’s fruit is sweet.”
"Sometimes the best investments are the ones you don't make."
“After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It was my sitting. Got that? My sitting tight! Men who can both be right and sit tight are uncommon. I found it one of the hardest things to learn. But it is only after a stock operator has firmly grasped this that he can make big money.”
1. Every time you feel the urge to sell a stock you've just recently acquired simply because it risen in price, ask yourself "Have the fundamentals of the company changed since you first bought the stock? Has the sector or industry significantly changed to the point that the company can no longer compete? Are the reasons that you initially bought the stock no longer valid?" If the answers to the questions above are no, then be patient and remain invested.
2. Every time you get the urge to trade, stop and ask yourself "Are the technicals in place such that a trade is prudent? Are any of the momentum indicators screaming that this is the absolute perfect time to trade?" If the technicals aren't right then the timing is all wrong.
If you ask yourself the things above before you make that next reactive trade, you'll begin to realize and incorporate a certain degree of patience in your trading philosophy. What you will begin to discover is that a little more inactivity in your trading may just turn out to be beneficial to your portfolio.
This may just be something worth thinking about.