Last week, I said that great investors have different mindsets.

One tip? Develop amnesia.

Our memories can prevent us from making rational decisions.

Having Twitter as a public journal helps to bring accountability to my investing decisions.

https://www.fool.com/investing/general/2013/10/15/investing-like-a-psychopath.aspx

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We’ve had three significant SaaS crashes recently. Each taught me some valuable lessons:

In Dec 2018, I had too much cash on the sidelines, I got greedy and was waiting for cheaper targets that never came.

The lesson? Don’t try timing the bottom, pick targets and stick to them

In Q4 2019, I made the opposite mistake. SaaS stocks were blowing up while the market was ripping to all-time highs. I assumed that this would be another quick rotation and caught a falling knife.

The lesson? Focus on individual stocks, respect the trend, and always have a plan

Finally, in the March crash, I bought systematically all the way down. But I was so spooked by the macro news and my previous losses that I took some profits too soon

The lesson? Shut out the noise, don’t trade too much, and focus on where the stock will be in 5 yrs, not 5 wks

The advice Mark Sellers gave was deceptively simple. We’ve probably all heard the Buffett quote to “be fearful when others are greedy and be greedy when others are fearful” yet why is it so hard to act on it?

As this article explained, it can go against our very nature.

The overarching lesson here is that making decisions based on my biased memories is a bad idea.

Forget what price it was at a month ago. Revaluate your portfolio every day. Allocate according to your confidence levels, not what price you bought it at.

Stay disciplined.