You want to jump on the Netflix’s of the world to try and capture that same lightning in a bottle that led to triple digit gains. However, that emotional response should be tempered with the knowledge that there will always be lost opportunity in the stock market. It’s just the nature of the game.
It’s more important to stay focused on your individual risk tolerance and process than trying to step outside those boundaries and suffering the consequences of an ill-timed trade. A sound investment strategy takes time, tools, and discipline to implement properly and years like 2015 can test your resolve.
No matter what your style might be, you should evaluate your performance based on your ability to stick with your plan rather than the results of any particular year. That will lead to quality self-examination and the ability to make careful adjustments when needed to improve your returns or lower your risk.
This article is brought to you courtesy of David Fabian.