Small tweaks to improve your decision making as an investor.
Spending an extra 10–15 minutes per trade on these tweaks compounds into better risk control, fewer regrets, and a portfolio driven by process—not adrenaline.
This article was written by a Financial Horse Contributor.
1. Write a One-Sentence Thesis
For every new idea, jot a single clear sentence that states the bet, the catalyst, and the time frame.
Example: “Over the next 18 months, increased AI demand will push TSMC’s EPS ≥ US$9, justifying a US$175 price.”
Benefit: If you can’t squeeze it into one sentence, you don’t understand it yet.
2. Apply the “5-Minute Contrarian”
Spend five minutes hunting for the best argument against your trade before clicking Buy.
Example: Bullish on luxury stocks? Scan the latest China consumer-confidence data for cracks.
Benefit: Short burst, big reduction in confirmation bias.
3. Use the Traffic-Light Note
Create a simple note with three sections:
- Green – facts that support the thesis
- Yellow – uncertainties (e.g., regulatory risk)
- Red – deal-breakers (e.g., accounting red flags)
Skim it before adding to the position.
Benefit: A visual snapshot keeps emotion from drowning risk signals.
4. Run a 30-Second Pre-Mortem
Ask: “It’s one year later and this investment bombed—what happened?” Write the first reason that pops up.
Example: “Competition slashed Nvidia’s data-center margins.”
Benefit: Surfaces blind spots without a full-blown scenario analysis.
5. Calendar a 15-Minute Monthly Scorecard
Track only three numbers per position:
entry price, exit/stop price, thesis status (✔ / ✖)
Benefit: Focuses on decision quality, not day-to-day noise.
6. Automate Core DCA, Manual for Satellite Bets
Route a fixed sum into broad ETFs automatically, freeing head-space for high-conviction plays that maximize your knowledge & experience as an investor.
Benefit: Guarantees participation in market upside while guarding against over-trading.
7. Install a One-Tap Research Shortcut
Bookmark a single dashboard (e.g., FinViz screener, SGX announcements, or FRED charts).
Force yourself to open it before reading social-media chatter.
Benefit: Front-loads raw data, shrinking the influence of headlines and hype.
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Putting It All Together
- Idea pops up → craft one-sentence thesis.
- 5-Minute contrarian & traffic-light note → refine or reject.
- Size & automate (core vs. satellite).
- Pre-mortem just before execution.
- Log in scorecard; revisit at month-end.
Small Tweaks to Improve Decision Making as an Investor
| # | Tweak | Why It Works | Concrete Example | Take-away Question |
| 1 | Add a “24-Hour Cool-Off” Rule | Slows impulse trades, reduces overreaction to news | You read that NVIDIA just beat earnings. Draft the trade ticket, save it, review the next day. The stock is up 9%; you realise the risk-reward is now unattractive and skip the chase. | Would I still make this trade if the price moved 5–10 % against me overnight? |
| 2 | Pre-Define Exit Criteria | Clears emotions when volatility hits | Before buying the SPDR Energy ETF, note: “Sell if oil falls below $65 or if the ETF underperforms the S&P 500 by 10 % over 6 months.” | What data point will tell me I’m wrong—and have I written it down? |
| 3 | Use a Position-Sizing Formula | Prevents one idea from sinking the portfolio | Adopt 1 % risk per trade: if your stop-loss is 8 % below entry, allocate 12.5 % of your capital (1 ÷ 8 %). | How much can I lose before this position forces bad decisions elsewhere? |
| 4 | Run a Pre-Mortem | Identifies blind spots before committing | You’re bullish on Tesla’s Robotaxi launch. Ask: “It’s 2027 and the trade failed—what went wrong?” Answers might include regulatory delays or battery shortages, prompting scenario hedges (e.g., long lithium suppliers). | What plausible events could turn my thesis upside-down? |
| 5 | Implement a Two-Person Check (or AI co-pilot) | Adds friction and fresh eyes | Before buying an Indonesian REIT, you share your rationale with a peer (or summarise it to ChatGPT and ask for counter-arguments). They flag rising IDR funding costs you overlooked. | Who (or what) will challenge my assumptions today? |
| 6 | Track Decisions, Not Outcomes | Reinforces process over luck | Maintain a simple Google Sheet: date, idea, thesis, entry/exit rules, and a 1-to-5 confidence score. Review monthly to see if high-confidence calls beat low-confidence ones on a per-decision basis. | Am I rewarding good thinking or just good luck? |
| 7 | Automate Dollar-Cost Averaging (DCA) into Core Holdings | Removes timing anxiety | Set a brokerage rule: invest S$1,000 every month into IWDA (global equity ETF). Market dips become automatic bargains without extra effort. | What % of my portfolio can run on autopilot so I can focus on high-conviction ideas? |
| 8 | Use “If-Then” Triggers for News | Translates information into action only when relevant | “If the Fed hikes > 50 bp unexpectedly, then trim 20 % of long duration bonds (TLT).” Most headlines become noise; only pre-defined triggers prompt moves. | Which specific metrics will flip my stance from hold to act? |
BTW – we share commentary on Singapore Investments every week, so do join our Telegram Channel (or Telegram Group), Facebook and Instagram to stay up to date!
Financial Horse also share great tips on Twitter.
Don’t forget to sign up for our free weekly newsletter too!
These micro-habits cost little in time or money, but they build a repeatable process that protects you from the two biggest portfolio killers—overconfidence and inconsistency.
One good habit today is worth a dozen clever trades tomorrow.