In my latest entry into the “Core Rules of Investing” I outlined that you should never look back and dwell on what could have been.  If you think for a second that you will be able to  call every top and bottom out there, you are in for a miserable adventure.

There is a distinct difference between dwelling on the past and learning from the past.  Do not do the former….always do the later!  After all, learning from your experiences has made you what you are today.  Whether you learn a trick that lets you drive a golf ball 50 yards further, or learn that driving too fast will get you a ticket, you should always learn from your successes and, more importantly, your failures.

When you are investing, if you keep looking back over your shoulder and say, “If I had only kept $WPRT for another week I would have been in the money by $150 instead of in the hole by $175“.  You can not keep beating yourself up over what didn’t happen.  No matter how much you pout about it you will never realize any more gains.  In fact it can lead you to violate another core rule of leaving emotions at the door.

I did learn a very good lesson out of that $WPRT debacle.  You have to have an iron gut when playing with high risk strategies.  Options are not conservative, not in the least.  Things can swing a lot and you have to be willing to hang on for the entire ride.  Jumping off the top of a rollercoaster (or the bottom in this case) that is still functioning is probably not a good idea.  You will probably get hurt more by the hasty exit than just holding on until the ride is over.

There are times where jumping is the only option.  If you are flying in a plane and the wings fall off….well you are pretty much doomed and a panicked decision may be in the cards…but this very rarely happens.  That is why you already have your entry/exit strategies.

The point is, do not dwell on the past…it will only frustrate you more.  Learn and move forward.