Calibration in investing is an absolute art. We must know our portfolio very well. We must look closer to know where we need to act. We need to have a decision-making mechanism. And, we must act decisively once we make up our minds.
While the steps mentioned above clearly indicate a process approach, there is an element of art that puts everything together. That element is brought in by the investor’s personality. If technology or user interface can fail miserably in investing, it is in enabling an investor to develop this personality. They simply may not be able to achieve that. Only discipline can help an investor master the art of investing.
The art of selling is heavily dependent on calibration. It needs the development of the right personality, appropriate behaviour, an effective ecosystem, and a suitable temperament. Investors who become sober with success are likely to develop into good sellers. And, when an investor becomes incrementally sober, he deals with success far better than his peers.
With every market cycle, an investor improves, moderates his behaviour, deals better with success and does whatever it takes. Effectively, investors learn calibration by doing. There is no other easy way.