With an increase of market news posts on this platform, many people are constantly making adjustments to their portfolio based on things happening. It’s time to remind all of you: Constantly adjusting your portfolio is going to ruin your returns. The goal of investing is to have a long-term strategy with as minimal work as possible later on. You create a strategy today so that you don’t have to worry about how you’ll invest in the future. This should be the goal of every investor if they want to be successful. However it seems that many can’t follow through on this. The biggest factor to the issue is by far stock market news. There has been so many posts lately that talk about every single tiny event that’s ever happening and why you should be screaming in fear or jumping for joy over today’s market open. This needs to stop. The amount of people I see being influenced by every single news story is ludicrous, it’s teaching beginners bad investing behaviour. I’ve had people respond to me saying they enjoy seeing market news because it lets them change their strategy every time something new comes up. This is horrible practice, this will lead you to underperform the market even if all you’re doing is buying the market. That shouldn’t have to be a situation you get yourself in. Market news does not affect your strategy and shouldn’t. Your strategy should have already incorporated downturns of 10-50% and what you do if they were to happen. You shouldn’t be surprised when some major news event changes the direction of your investments, you’re supposed to plan for those. Watching every single news article to see if it’s going to be the next big thing isn’t helping you. The same people who say “ignore the noise and keep buying” are also the ones who regularly post short term news or jump onto every new hype train. Market news is not the only culprit either, so many beginner investors constantly jump to each new investment they find online. This is even worse for your returns as you’re constantly making trades in and out. The likelihood that you made the best trade at the right time goes down significantly with every new trade. You’re not going to get every investment right every time, you’re setting yourself up for failure. Once again, you’re not going to be chasing every new company in 40 years, so have a plan now that lets you be stable in the future. Stop running after massive gains when you can’t even sustain positive returns with what you own now. Rather than saying you’re a long term investor, start actually being one. The best thing you can do is turn everything off and actually let the investments do the work for you. As always, do your research and happy investing!
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21 Comments
le bib@le_bib · 1yr
One of my favourite quote: "There are two kinds of forecasters: those who don't know, and those who don't know they don't know."
Ian Bremner
@Bremsey · 1yr
"Your portfolio is like a bar of soap. The more you handle it, the smaller it gets"
Avy
@avalueinvestor · 1yr
Like they say- Calling someone who trades actively in the market an investor is like calling someone who repeatedly engages in one-night stands a romantic.
Adrian B
@ady_b · 1yrEdited
With all due respect…I beg to differ on this. In my book…buy and hold strategy doesn’t work anymore. If the market crashes on you…it will take years to recover! The marjet is never at standstill and you need to work pending on the market. Not to time the market, but to rotate your assets! Why would I stay in something losing money, when there are new, different opportunities…such as gold, silver, oil, precious metals, uranium right now! Again…in case of a market downturn…the buy and hold strategy may lose you a ton of money…with years to recover!!! I don’t pretend I know it all…far from that…but just a different perspective for our fellow investors. At the end of the day, the choice is yours! And yours alone!!! Cheers ✅✅✅
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