Monday, 12 April 2010

Here is a technique to learn more about your buying and selling decision making.

You may separate all the months the market went up from the months the market went down.  Do this from the year 2005 to now, which includes the 2008 severe bear market.

From your CDS account statements, you can find out whether you were a net buyer or a net seller during these various months.

  • If you were a net buyer during the months the stock market declined, you are more likely to be a contrarian.  
  • But if you were a net buyer when the stock market did well, you may have a herd mentality.

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