The ability to change one’s mind is probably a key characteristic of the successful investor.
Jack d. Schwager
In the financial markets, if you are wrong on a position, there isn’t a problem. But when you aren’t able to change your mind, and stay wrong, then we have an issue.
When we zoom out, we are always in trades…
A project we start, a job we are in, a point of view we express, a blog post we write, an assertion we make.
Whenever we take action, we take a position, whether we acknowledge it or not.
When the trade starts going against us, or when we realise we are on the wrong bus, often the best (and sometimes hardest) thing we can do is change our mind, and change our position.
