Magee, who co-authored "Technical Analysis of Stock Trends", has written "An investor's New Year's Resolutions" that I think most will like to employ.
1) I will not alienate my friends and antagonize my family by reminding the world on every possible
occasion how right I was about the upturn or downturn in steels, motors, airlines, or whatever.
2) When I buy a stock, I will not mobilize all the good news to make it look pretty. I will try to
consider both the favorable and unfavorable angles as impartially as I know how.
3) I will not close out a stock position that is doing well by me for no other reason than I have a
profit. I will not cut my gains in a good position.
4) I will not hang on to a stock that is persistently going against me. I will limit my loss and will
close out any positions that seem to have gone bad before really badly before I am in danger of serious
trouble.
5) I will not be swayed, or panicked, by news flashed, rumors, tips, or well-meaning advice.
6) I will not put all my eggs in one basket, nor will I be swept off my feet to plunge into into some
unknown or low-priced stock on a particularly emotional basis.
7) I will not attempt to tell the market what a stock ought to be worth. I will try to understand
what the market has to tell me about what people are willing to pay for it.
8) I will never forget that I am not in the market primarily to prove to my stockbroker, my friends,
my wife, etc. that I am smarter than everybody else, but to protect and if possible to augment my
capital.