A note from Daniel

The problem for the portfolio managers has an obvious solution. They need to track their selling decisions as rigorously as they are tracking their decisions to buy. Traders sometimes create shadow books of the things they were thinking about buying but didn't, to track how those decisions might have gone. A solution I've recommended to clients working in financial markets is to use the same strategy to solve the feedback problem on sell-side decisions. Create a book that tracks those sell-side decisions and see how they're doing compared to a benchmark of how they would have done if they randomly sold something different in the portfolio at the same time.

Daniel Quit, page 64 · August 25, 2024 Save to shelf
Notes like this take four seconds in Booksense. Scan the paragraph, it lands on the right page, and comes back for review later. Take your first note

More from readers of Quit

Daniel p. 247

Chapter 11 Summary: • Goals, when set, are a proxy for an expected-value equation, balancing the benefits that you're trying to gain against the costs you're willing to bear. • Inflexible goals aren't a good fit for a flexible world. • With better advance planning (like identifying monkeys and pedestals and kill criteria) and the help of a good quitting coach, you can make goals more flexible, setting at least one "unless" and planning regular check-ins on the analysis that initially led to setting the goal.
Daniel
Daniel p. 247

Chapter 11 Summary: • Goals can make it possible to achieve worthwhile things, but goals can also increase the chances that we will escalate commitment when we should quit. • Goals are pass-fail in nature. You either reach the finish line or you don't, and progress along the way matters very little. • Don't just measure whether you hit the goal, ask what you have achieved and learned along the way. • Set intermediate goals and prioritize goals that allow you to recognize progress along the way or acquire something valuable even if you don't reach the goal.
Daniel

More from Daniel

See their profile
Ultra Successful p. 60

The False Constraints That Limit Your Potential: - How Quickly You Can Scale Whether it's your business or your career, there are unspoken timelines that people accept as gospel.They are all untrue: "You can only really grow at 10% a year." "You need to pay your dues for a decade before getting promoted." These artificial limits keep people moving at a crawl when they could be sprinting or pushing for more. The most successful people I know refuse to accept conventional wisdom about timelines, and oddly enough, they break them all the time.
Daniel

Stop losing the best parts of what you read.

Booksense pushes your highlights back to you for review, so a note from page 174 is still yours a year later. Free on iOS.

Get Booksense free
Daniel on Booksense 5,999 notes 387 hours of reading