Mental models are decision-making shortcuts that keep you grounded. Examples include margin of safety, opportunity cost, and inversion. Applying them reduces the odds of chasing trends or panic-selling.

Create a brief checklist of the models you rely on before buying or selling. This encourages a pause to evaluate assumptions, alternatives, and downside scenarios.

Combine mental models with written investment policies. When decisions feel rushed, revisit these guides to stay aligned with your long-term plan.