One of the problems with emotions getting in the way is that one feels the
need to be "doing something", and that is a difficult temptation to keep in
Even Peter Lynch succumbed to it: in the first year he managed the
Magellan fund, his stock turnover was 300%. But he noticed quickly that he
was selling winners much too soon, and managed to get the turnover down to
100% in the second year. And that's another emotional thing: one tends to
hang on to one's losers too long, and sell winners too soon. Lynch calls it
"pulling up the flowers and watering the weeds."
When I get the temptation to "do something", I sublimate it by getting to
know better the companies that I own.
I try to keep in my mind something that Bejamin Graham said, which helps me
keep my emotions in check and to think independently:
right nor wrong. You will be right if your facts and reasoning are correct."