Here are the seven strategies and their application to financial decisions:
1. Limit the options. Purchase illiquid investments to avoid the urge to sell investments when the market is falling.
2. Avoidance. Avoid information about how the market or portfolio is performing in order to stick to a long-term investment strategy.
3. Rules. Establish and use rules to help make better financial decisions, such as spend only out of income and never out of capital.
4. Deadlines. Set financial deadlines. For example, aim to save a certain amount of money by the end of the year.
5. Cool off. Wait a few days after making a big financial decision before executing it.
6. Delegation. Delegate financial decisions to others, such as allowing an investment adviser to manage your portfolio.
7. Other people. Use other people to help reach financial goals. An example would be meeting with a financial adviser to make and execute a financial plan.
http://money.msn.com/investment-advice/7-ways-to-limit-investment-mistakes-usnews.aspx
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