How do you make a decision? Are you conscious about it? When do you decide quickly? When does it take long?
I like quick decisions. I can decide quickly as long as I know:
- what it is about
- what the implication is
- what change goes along with
- what my benefit is
- what my liability is
- what the costs are
Fine? No! I miss following question:
How can I reverse my decision?
I believe that we should think about this before we engage.
In the financial markets liquidity and tradability are key so that your order is implemented. It means how much and how often it is traded. Ideally the trade volume is above yours and the asset is traded several times a day.
When I decide to buy, I like to have it done as quickly as possible. When I want my profit to be locked in, then immediately. And if I want minimize my loss, then I need to be sure that I get out as soon as possible.
