What I called the ‘no-bullshit rule’ obviously also applied to our trades. Each trade on our portfolio had to pass these often-repeated tests: The alternative to this trade is cash, which in certain markets is a great investment (assuming the bank you save with does not go bust, of course!). When you come to work each morning, you are effectively buying the portfolio again. If you started today with cash and no securities, is this really the portfolio you would create? Are you guilty of positive affirmation in your trades – i.e., are you looking for reasons why your trade is good rather than
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