Your mental "tricks" to avoid doing dumb things?

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elliott1234
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Your mental "tricks" to avoid doing dumb things?

Post by elliott1234 »

Over time I have identified my triggers for wanting to do dumb things...

1. Big market drop - "If I sell now I can buy back in later!"
2. Crazy market stuff (like GME) - "I should take a % of my money and get in this!"
3. Seeing posts on here about folks with 7 figure accounts - "I will never get there if I don't do crazy stuff!"

My tricks to avoid the urge to do something dumb...

1. I look at my investment plan like the Constitution that needs a really good reason to change.
2. I am a vegetarian so I look at being a Boglehead the same way... just because I see an appetizing looking steak, I'm not going to eat it.
3. I have every dollar accounted for and keep no money in settlement accounts. It is either in my savings account, checking account, or retirement account so there is no extra money tempting me. The extra step of having to move money over is an impediment to rash action.

Do you have any tricks to stay on track?
UpperNwGuy
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Re: Your mental "tricks" to avoid doing dumb things?

Post by UpperNwGuy »

My trick: Don't think about all those possibilities. Just be content with your portfolio as is.
livesoft
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Re: Your mental "tricks" to avoid doing dumb things?

Post by livesoft »

My biggest mental trick is to use the well-regarded RBD strategy which prevents me from buying equities and rebalancing on really bad days, but forces to me buy equities and rebalance on Really Bad Days.
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Topic Author
elliott1234
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Re: Your mental "tricks" to avoid doing dumb things?

Post by elliott1234 »

I'm 37 and it took me a while to get there but I am 100% equities because it seemed silly to carry 5 or 10% bonds. If you are "all in" so to speak then RBD rebalancing is not really an option correct?
ManOfIron35
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Re: Your mental "tricks" to avoid doing dumb things?

Post by ManOfIron35 »

Ask people who brag about how much money they made off GME trades and they refuse to show you... They probably lost in those scenarios.

The Boglehead philosophy has vastly outperformed my peers who speculate vs. invest.
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Re: Your mental "tricks" to avoid doing dumb things?

Post by BolderBoy »

elliott1234 wrote: Tue Feb 02, 2021 9:53 amI'm 37 and it took me a while to get there but I am 100% equities because it seemed silly to carry 5 or 10% bonds. If you are "all in" so to speak then RBD rebalancing is not really an option correct?
Right. 100% equities forestalls rebalancing at all.

And thereby losing out on potential 'sell high, buy low' opportunities. Instead, you ride the market down then back up.
"Never underestimate one's capacity to overestimate one's abilities" - The Dunning-Kruger Effect
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Re: Your mental "tricks" to avoid doing dumb things?

Post by rich126 »

I think the worst thing people do is to look at their accounts daily. And this is especially true for people years away from retirement. The worry over a 5%, 10%, whatever drop when you are 20s/30s/early 40s is pointless when you got decades to go before retirement.

I use multiple accounts. Some, like my TSP account, I usually set up and leave it alone. Others that I invest in stocks I'm more active (far from any kind of day trader) in. Right now I have too many accounts and I'm trying to consolidate them (they came about from trying out various brokers, a new job and gaining account bonuses).
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international001
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Re: Your mental "tricks" to avoid doing dumb things?

Post by international001 »

What is RBD?

My mental trick is keeping tilts with several similar funds/etfs. IT helps me to TLH, to build nice spreadsheets that help me being active in which is the next fund/etf I have to make a contribution. For now, it helps me to have a feeling I have control and, on the side, optimize things a little .
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Brianmcg321
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Re: Your mental "tricks" to avoid doing dumb things?

Post by Brianmcg321 »

I keep my TV on the golf channel.
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3funder
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Re: Your mental "tricks" to avoid doing dumb things?

Post by 3funder »

I consider the fact that I chose my AA for a reason, and as long as I maintain a close approximation, I'll be fine.
Global stocks, US bonds, and time.
Trader Joe
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Re: Your mental "tricks" to avoid doing dumb things?

Post by Trader Joe »

elliott1234 wrote: Tue Feb 02, 2021 9:45 am Over time I have identified my triggers for wanting to do dumb things...

1. Big market drop - "If I sell now I can buy back in later!"
2. Crazy market stuff (like GME) - "I should take a % of my money and get in this!"
3. Seeing posts on here about folks with 7 figure accounts - "I will never get there if I don't do crazy stuff!"

My tricks to avoid the urge to do something dumb...

1. I look at my investment plan like the Constitution that needs a really good reason to change.
2. I am a vegetarian so I look at being a Boglehead the same way... just because I see an appetizing looking steak, I'm not going to eat it.
3. I have every dollar accounted for and keep no money in settlement accounts. It is either in my savings account, checking account, or retirement account so there is no extra money tempting me. The extra step of having to move money over is an impediment to rash action.

Do you have any tricks to stay on track?
No I do not.
KneeReplacementTutor
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Re: Your mental "tricks" to avoid doing dumb things?

Post by KneeReplacementTutor »

My mental trick to avoid doing dumb things is to remember that some of the dumbest things are the ones that seem to be the smartest at the time. :happy
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Re: Your mental "tricks" to avoid doing dumb things?

Post by sailaway »

UpperNwGuy wrote: Tue Feb 02, 2021 9:47 am My trick: Don't think about all those possibilities. Just be content with your portfolio as is.
This. Besides, if I did have an itch, I would have to discuss it with my husband. Yesterday, he was so stressed with work he couldn't make a decision about recycling a box, much less anything so serious as messing with our plan. I love not being in constant decision making mode with finances: that was one of the greatest benefits of getting out of poverty!
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Re: Your mental "tricks" to avoid doing dumb things?

Post by KneeReplacementTutor »

international001 wrote: Tue Feb 02, 2021 10:05 am What is RBD?
RBD = Really Bad Day

Livesoft has a dynamic worksheet that calculates RBD's for the purpose of optimal rebalancing (I think).

https://www.gebele.com/charts-and-graphs/rbd-alerts
Last edited by KneeReplacementTutor on Tue Feb 02, 2021 10:18 am, edited 1 time in total.
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arcticpineapplecorp.
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Re: Your mental "tricks" to avoid doing dumb things?

Post by arcticpineapplecorp. »

international001 wrote: Tue Feb 02, 2021 10:05 am What is RBD?
Really Bad Day.

when the stock market drops by a significant amount (to be defined by you)

could it also be Rebalancing Band Disrupted?
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mmmodem
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Re: Your mental "tricks" to avoid doing dumb things?

Post by mmmodem »

My trick is to consult the "experts" on Boglehead's before I make a financial decision. Just about every move I wanted to make someone has done it before or thought about before me.

I took advantage of last March's lows by front loading my 401k and Roth IRA contributions after seeing RBD and multiple capitulate selling posts here.
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Re: Your mental "tricks" to avoid doing dumb things?

Post by BogleFan510 »

Repeat the mantra, "all available information is already priced into the assets available..my trading insights are useless. Buy and hold a quality portfolio and ignore any noise until we need the money is the winning strategy."
Afty
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Re: Your mental "tricks" to avoid doing dumb things?

Post by Afty »

My trick is to avoid any news or discussions about the market during a drop, GME, whatever. They just stress me out and tempt me to break from my plan.
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Re: Your mental "tricks" to avoid doing dumb things?

Post by NAVigator »

When I was working, I looked at the money I was investing. That was a difficult way to look at it. After a while, I learned how pleasant it was to look at the returns instead. This is the money that is added to my portfolio that I DIDN'T have to work for. This is the money my investments contributed to my future. Compound interest is an important part of investing.
"I was born with nothing and I have most of it left."
H-Town
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Re: Your mental "tricks" to avoid doing dumb things?

Post by H-Town »

elliott1234 wrote: Tue Feb 02, 2021 9:45 am Over time I have identified my triggers for wanting to do dumb things...

1. Big market drop - "If I sell now I can buy back in later!"
2. Crazy market stuff (like GME) - "I should take a % of my money and get in this!"
3. Seeing posts on here about folks with 7 figure accounts - "I will never get there if I don't do crazy stuff!"

My tricks to avoid the urge to do something dumb...

1. I look at my investment plan like the Constitution that needs a really good reason to change.
2. I am a vegetarian so I look at being a Boglehead the same way... just because I see an appetizing looking steak, I'm not going to eat it.
3. I have every dollar accounted for and keep no money in settlement accounts. It is either in my savings account, checking account, or retirement account so there is no extra money tempting me. The extra step of having to move money over is an impediment to rash action.

Do you have any tricks to stay on track?
Just one thing: focus on what you can control. Forget about what are out of your control.
Time is the ultimate currency.
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BrooklynInvest
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Re: Your mental "tricks" to avoid doing dumb things?

Post by BrooklynInvest »

My one trick, which took me a lot of time to develop:

First, do nothing.
livesoft
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Re: Your mental "tricks" to avoid doing dumb things?

Post by livesoft »

KneePartsPro wrote: Tue Feb 02, 2021 10:13 am
international001 wrote: Tue Feb 02, 2021 10:05 am What is RBD?
RBD = Really Bad Day

Livesoft has a dynamic worksheet that calculates RBD's for the purpose of optimal rebalancing (I think).

https://www.gebele.com/charts-and-graphs/rbd-alerts
For the record, that is not my spreadsheet and I did not create it.
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ruralavalon
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Re: Your mental "tricks" to avoid doing dumb things?

Post by ruralavalon »

I don't keep the TV on any news channel. I keep the radio or Pandora on music I enjoy.

If I get an investing idea, I don't act I just wait.
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JoeRetire
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Re: Your mental "tricks" to avoid doing dumb things?

Post by JoeRetire »

elliott1234 wrote: Tue Feb 02, 2021 9:45 am Do you have any tricks to stay on track?
I make a financial decision after weighing the options, then I don't look back.

Most of my tricks to avoid doing dumb things are non-financial.
- When I come in the house, I always put my keys and wallet in the same place every time. That way I don't lose them
- I keep my phone in my pocket until bedtime. Then I put it on a charger with my keys and my wallet
- I write notes to myself about everything I need to remember
- I bite my tongue whenever I feel the urge for a snarky response to something my wife says
- I write a lot of emails that I never actually Send
This isn't just my wallet. It's an organizer, a memory and an old friend.
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retired@50
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Re: Your mental "tricks" to avoid doing dumb things?

Post by retired@50 »

elliott1234 wrote: Tue Feb 02, 2021 9:45 am
3. Seeing posts on here about folks with 7 figure accounts - "I will never get there if I don't do crazy stuff!"
I think 7 figures is within reach for many investors, without doing crazy stuff.

If you follow the Boglehead principles and contribute to your accounts regularly, you'll get there too. :happy

Regards,
If liberty means anything at all it means the right to tell people what they do not want to hear. -George Orwell
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C4NT
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Re: Your mental "tricks" to avoid doing dumb things?

Post by C4NT »

I'm not sure if this is a trick, but we don't have any extra money to do anything dumb with.

We invest in retirement accounts.

Leftovers go for saving for:

(1) Renovations that we want to do in ~1 year
(2) newer car we will need in ~2-3 years

Maybe I'll get to do something dumb in few years
GrowthSeeker
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Re: Your mental "tricks" to avoid doing dumb things?

Post by GrowthSeeker »

If I'm tempted to do something dumb, but I think maybe it's not dumb, but I'm not sure; I defer the decision to the next day and sleep on it. I usually end up doing nothing.

---
Don't just do something, stand there.
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KneeReplacementTutor
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Re: Your mental "tricks" to avoid doing dumb things?

Post by KneeReplacementTutor »

livesoft wrote: Tue Feb 02, 2021 12:02 pm
KneePartsPro wrote: Tue Feb 02, 2021 10:13 am
international001 wrote: Tue Feb 02, 2021 10:05 am What is RBD?
RBD = Really Bad Day

Livesoft has a dynamic worksheet that calculates RBD's for the purpose of optimal rebalancing (I think).

https://www.gebele.com/charts-and-graphs/rbd-alerts
For the record, that is not my spreadsheet and I did not create it.
Thank you for clarifying.
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Svensk Anga
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Re: Your mental "tricks" to avoid doing dumb things?

Post by Svensk Anga »

During the 2008/09 crash, when I was tempted to bail out of equities, I would ask myself, “but what if today is the low?” IOW, today might just be the very worst time to sell, better to be buying instead.

It helps to bear in mind that the impressive historical returns on stocks include holding through all the unpleasant periods.
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ruralavalon
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Re: Your mental "tricks" to avoid doing dumb things?

Post by ruralavalon »

Also read books, watch movies, go for a walk, exercise, get a hobby.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
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Re: Your mental "tricks" to avoid doing dumb things?

Post by SnowBog »

Mines not so much a trick as it was a learning moment.

I used to be more concerned with things. Worried "stocks were too high" or a "crash was imminent". Worried I wasn't invested in the right stuff.

When I found Bogleheads, and in particular the book/guide to the three fund portfolio... And then saw the article on the "worst market timer ever" (only bought low cost index fund at peaks right before crashes, but never sold)...

Those two "clicked" for me. Slow and steady wins the race and beats out the vast majority of people who do otherwise.

I forget the exact quote but Bogle said something like "there may be better portfolios, but there's an infinite number of worse ones".

(Sure, someone will get rich on something like the next GME. And some might even realize that was luck and not "bet the farm" on the next big thing that flops. But most are going to lose playing that game... )
anna.day
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Re: Your mental "tricks" to avoid doing dumb things?

Post by anna.day »

I never check my accounts when the markets are down. As a result, I have never sold during a market drop. If for some reason I need to check them during a down turn (like to make sure a deposit cleared), I make my husband do it and report back. It’s a little crazy but it works for me, and I handle all the investing for our family.
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Re: Your mental "tricks" to avoid doing dumb things?

Post by SantaClaraSurfer »

Remind myself that there's nothing in our AA that we would ever need to sell with any urgency.
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Re: Your mental "tricks" to avoid doing dumb things?

Post by 4ransom »

When I come u[ with a brilliant idea I write it down, date it, then come back and rethink it in a month. If I still the think it's brilliant I implement it. Ninety percent of the time I decide to do nothing.
JayDee37
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Re: Your mental "tricks" to avoid doing dumb things?

Post by JayDee37 »

Having a thoughtfully considered AA and well-defined rebalancing plan is key. Also, really maxing out what you are able to contribute to your eventual retirement (while still supporting your current quality of life and planning for other types of expenses) leads to a kind of "welp, I'm literally doing all I can" fatalism, which sounds depressing but can be kind of freeing too.

I am generally not tempted to mess with stuff in any meaningful way--I am especially not bothered by holding during a big drop or rebalancing out of equities when they've been surging, because for whatever reason my default way of conceptualizing those transactions is "locking in" the gains or losses. I don't know if this is mental trick per se, since it's just what my brain does. But my brain is like, "Dude, you haven't ACTUALLY LOST any money UNLESS YOU SELL NOW. DON"T SELL, THAT IS WHAT CREATES THE LOSS!!" And with my brain shouting at me like that, it's pretty easy to just ride out the drop (unless/until it breaches a rebalancing band, which is why having those is key). I am also helped by being 20 years from retirement, so not worried about sequence of returns risk quite yet. It will be harder to tolerate large drops once I'm within the SRR range.

It's similar to rebalancing out of equities when their ups have triggered a rebalancing. Brain starts officiously reminding me that it's not real money unless I make some sales.

Actual, intentional things I do to counter the occasional desultory urge to meddle:
-I don't keep a robust settlement account.
-Other than regular account maintenance stuff (every two weeks the day after payday) I only look at my portfolio on days when the market is up a lot, just to feel a little more confident about being able to retire eventually.
-Other than the standard EF, my cash flows and savings are heavily earmarked for specific upcoming expenses.

Finally, I try NOT to read any boglehead threads focused on Rich People Problems, since their situations are not relevant to my own, and I find them equal parts anxiety-provoking and annoying. I mean, congrats on being in such good shape, and I know most people on this forum who are really well off got there through hard work and disciplined investing practices, and they have as much need for and right to advice and support as anyone else. I'm not knocking them; I admire them and aspire to someday join that club, however unlikely that may be. But reading those threads is just not helpful to me at all.
Tell me, what is it you plan to do with your one wild and precious life? | ~Mary Oliver
Gato
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Re: Your mental "tricks" to avoid doing dumb things?

Post by Gato »

[MOVED TO MAIN GME THREAD]
Last edited by Gato on Tue Feb 02, 2021 4:08 pm, edited 4 times in total.
MathWizard
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Re: Your mental "tricks" to avoid doing dumb things?

Post by MathWizard »

I remember when doing nothing was the right move.

I was certain that the market would crater in 2020, but it did not.

I made 15% on my portfolio last year, when I was expecting a 20% loss.

Staying put, other than rebalancing, made me a lot of money.
So much money for "Doing Nothing".

It is possible that I have been trained not to expect money for
"Doing Nothing" but that is what passive investing is. Basically, lash the
wheel and periodically make course corrections if you drift off course
(rebalance when your AA moves due to gains/losses).
DarkHelmetII
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Re: Your mental "tricks" to avoid doing dumb things?

Post by DarkHelmetII »

Hold a little bit of in bonds. Even 5 or 10% can satisfy the urge to "do something" by way of rebalancing.
Dr. Dad
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Re: Your mental "tricks" to avoid doing dumb things?

Post by Dr. Dad »

The thing that has helped me: Taking my time to create an Investment Policy Statement that accurately reflects my wants, needs, judgement and style. And then rereading it as often as needed to stay the course.

Good luck,
DD
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FelixTheCat
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Re: Your mental "tricks" to avoid doing dumb things?

Post by FelixTheCat »

Dr. Dad wrote: Tue Feb 02, 2021 2:13 pm The thing that has helped me: Taking my time to create an Investment Policy Statement that accurately reflects my wants, needs, judgement and style. And then rereading it as often as needed to stay the course.

Good luck,
DD
+1 on investment policy.
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Re: Your mental "tricks" to avoid doing dumb things?

Post by dboeger1 »

1) I'm 29, so still young, but in March 2020, I reread Bogle's "Little Book of Common Sense Investing". It calmed my nerves immensely, as I remembered why I had been so thoroughly convinced of passive index investing in the first place. Made it through with a 100% stock portfolio easy peasy (although it was admittedly a very short-lived crash).

2) At times, I've thought about putting some funny money on individual stock picks. I never did, but nonetheless, I followed some of my hunches out of curiosity, and got lucky on a number of them at first. I thought about buying Nvidia and AMD years ago. I considered buying Barnes & Noble just a few days before they got acquired. I nailed the bottom for cruise stocks (though that game may still be in its early innings the way cruises are still getting cancelled). I forget what the others were but I had some lucky picks. Want to know what my last brilliant idea was? Shorting Gamestop ;) I still think it has virtually no chance of surviving, but boy, was my timing bad on that one. I didn't really understand the extent to which it had been shorted. Good thing I never put real money on it! I think that scared the stock picker out of me for now.

3) Remember there are so many other ways to make money. I think sometimes as Bogleheads and passive investing nerds, we get so caught up in passive equity investments that we forget there are these things called jobs where you actually do something for money. I realize most of us have them, but even if we can't boost our income at work, we can try out side hustles. Some can even be relatively passive, like equipment rentals or vending machines. I'm 100% stocks because bond yields are so low, so I'm looking for simple ways to generate "safe" income. I'm thinking about taking up woodworking on the side. It really doesn't have to be a very competitive business as I'm just doing it to supplement my primary job income, so if I can learn to produce 1 or 2 items well, I can recoup the cost of the equipment fairly quickly, while learning new skills in the process. I really don't need to screw around with my precious retirement savings to do that.
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Re: Your mental "tricks" to avoid doing dumb things?

Post by Sandtrap »

My protocols to avoid doing "dumb things" are the following:

1. Realize that no matter how smart I think I am, no matter the IQ level, no matter what my perceptions. . . I'm going to do "dumb things".
2. Realize that despite a deep study of behavioral psychology and cognitive errors and the human ego, that everyone else around me, might believe with firm conviction in the rightness of their opinions, input, advice, and so forth, can only throw input my way from that single subjective source. So, take that in context.
*The Ant and Antdom Metaphor.
3. Realize that there are around 8 billion people on the planet, and like 8 billion ants on an ant mound, the idea that one ant thinks he's got the "answers" and is smarter than all the other ants, is just silly and myopic and very ant like. So, realize that I am one of those ants, and so are other ants that tell me they know better than I, or anyone else, or all the other ants.

Given #1-3, what's an ant to do?
(on topic and actionable)

1. Approach everything and everyone with humility, compassion, understanding, and pure intention, with that comes clarity.
2. Recognize in others, those perhaps rare moments, or those special people, that radiate #1, and ask for advice and another viewpoint.
3. Recognize human ego, the need for self esteem, identity, and security (feeling safe and protected within oneself though an artificial construct) in self and others. All ants are created under one ant image. So, protect other ants and also one's own antness (technical term) from the fascade of ant things that distract and temp to do "dumb ant things, dumb ant behaviors, and dumb ant perceptions".
3. Proceed with a well thought out plan and goals, methodically, carefully, and deliberately, with conviction and commitment, and the humility to change direction or stop at any time, and recognize it as "a dumb thing", because many things reveal themselves as "dumb things" in the doing and not before.
4. Have a sense of humor and ability to laugh at oneself and forgive oneself for doing yet another "dumb thing", it won't be the last.

With the above, we will always do dumb things, but hopefully avoid big dumb things and also dumb things that are irreparably hurtful to others and self.

I think there was a "disney?" movie called "Antz" or something like that. It was very cool.
j :D
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qwertyjazz
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Re: Your mental "tricks" to avoid doing dumb things?

Post by qwertyjazz »

In your entire life, have you ever done something stupid?
If so, then remind yourself of it next time you think you are smarter than the market and want to try to beat it.
G.E. Box "All models are wrong, but some are useful."
JnyVuko
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Re: Your mental "tricks" to avoid doing dumb things?

Post by JnyVuko »

3funder wrote: Tue Feb 02, 2021 10:07 am I consider the fact that I chose my AA for a reason, and as long as I maintain a close approximation, I'll be fine.
+1
JnyVuko
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Re: Your mental "tricks" to avoid doing dumb things?

Post by JnyVuko »

elliott1234 wrote: Tue Feb 02, 2021 9:45 am Over time I have identified my triggers for wanting to do dumb things...

1. Big market drop - "If I sell now I can buy back in later!"
2. Crazy market stuff (like GME) - "I should take a % of my money and get in this!"
3. Seeing posts on here about folks with 7 figure accounts - "I will never get there if I don't do crazy stuff!"

My tricks to avoid the urge to do something dumb...

1. I look at my investment plan like the Constitution that needs a really good reason to change.
2. I am a vegetarian so I look at being a Boglehead the same way... just because I see an appetizing looking steak, I'm not going to eat it.
3. I have every dollar accounted for and keep no money in settlement accounts. It is either in my savings account, checking account, or retirement account so there is no extra money tempting me. The extra step of having to move money over is an impediment to rash action.

Do you have any tricks to stay on track?
I don't know if you'd classify these as "tricks".

1) Set my AA to what I'm comfortable with. If drops/rises within my 5% band leave me uncomfortable then I need to set a new AA. One that I'm comfortable with so I don't get the urge to fiddle.
2) Someone told me once "Doing nothing is doing something." Think about it.....

Good luck.
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bligh
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Re: Your mental "tricks" to avoid doing dumb things?

Post by bligh »

elliott1234 wrote: Tue Feb 02, 2021 9:45 am Over time I have identified my triggers for wanting to do dumb things...

1. Big market drop - "If I sell now I can buy back in later!"
2. Crazy market stuff (like GME) - "I should take a % of my money and get in this!"
3. Seeing posts on here about folks with 7 figure accounts - "I will never get there if I don't do crazy stuff!"

My tricks to avoid the urge to do something dumb...

1. I look at my investment plan like the Constitution that needs a really good reason to change.
2. I am a vegetarian so I look at being a Boglehead the same way... just because I see an appetizing looking steak, I'm not going to eat it.
3. I have every dollar accounted for and keep no money in settlement accounts. It is either in my savings account, checking account, or retirement account so there is no extra money tempting me. The extra step of having to move money over is an impediment to rash action.

Do you have any tricks to stay on track?
1) Big Market Drop
My asset allocation just got more conservative automatically.. hope it falls more so I can rebalance.

2) Crazy Market stuff (like GME)
It's not investing, it is gambling. Play with only as much as you would be willing to play with in Vegas.

3) Seeing posts on here about folks with 7 figure accounts
If staying the course is working for them and lets them sleep at night with so much invested.. it sure as hell will work for little fish like me.
drk
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Re: Your mental "tricks" to avoid doing dumb things?

Post by drk »

Here's my trick from one of the GME-related threads:
drk wrote: Wed Jan 27, 2021 11:08 am I avoid FOMO by knowing that I would have sold when it doubled, or at least well before it quintupled or decoupled, and I wouldn't have put in much money in the first place, so I'm realistically only missing out on a few thousand dollars in gains.
Know thyself, master FOMO. :beer
A useful razor: anyone asking about speculative strategies on Bogleheads.org has no business using them.
backpacker61
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Re: Your mental "tricks" to avoid doing dumb things?

Post by backpacker61 »

Someone said that you become the average of the people you most associate with.

Choose carefully.
“Now shall I walk or shall I ride? | 'Ride,' Pleasure said; | 'Walk,' Joy replied.” | | ― W.H. Davies
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GerryL
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Re: Your mental "tricks" to avoid doing dumb things?

Post by GerryL »

JnyVuko wrote: Tue Feb 02, 2021 6:45 pm
I don't know if you'd classify these as "tricks".

1) Set my AA to what I'm comfortable with. If drops/rises within my 5% band leave me uncomfortable then I need to set a new AA. One that I'm comfortable with so I don't get the urge to fiddle.
2) Someone told me once "Doing nothing is doing something." Think about it.....

Good luck.
Yes. This.
I once heard #2 called "doing nothing with conviction."
Sort of what I think of as "embracing my ignorance." I've got no idea whether this reaction or that reaction is better, so don't react and stick with the plan.
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abuss368
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Re: Your mental "tricks" to avoid doing dumb things?

Post by abuss368 »

I simply block out the noise. I have learned over the years this is best and will prevent me from making costly emotional mistakes. Own total market index funds. Ignore the Wall Street marketing machine.

Tony
John C. Bogle: “Simplicity is the master key to financial success."
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