How You Can Be A Better Investor By Being Lazy
There is a rule the more informed you are the better decisions you make. When it comes to investing the opposite might be true. Humans tend to have a desire to be right. So when you think you might have a good investing idea but see someone else taking the opposite view it might stop you from investing in a stock, bond, or other asset. Trying to get everyone to agree with you or to get feedback before you take a risk is what might be costing you money.
See how other people’s opinion sway your investing decisions.
My journey started with a realization that the more media investors paid attention to, the worse they did. The more they analyzed, the more decisions they had to make. The more decisions they made, the more chances they had at being wrong, letting their emotions take over, and doing something regrettable. Find someone who has mastered personal finance, and you’ll find someone with a pathological ability to not give a damn.
A media investor is someone who trades by trying to gain as much information as possible and as result they make decisions based on what happens that day or hour. Absorbing too much information from the media sometimes causes investors to make poor decisions and miss opportunities. There are a million reasons why the market goes up or down for the day and it is rare that everyone agrees on the main driver. Making a personal investing strategy and sticking with it is the best way to make a good return. If you find your strategy is not working then it is time to look at the market and get feedback to make the best decision.
Learn how media investing can ruin your returns.
About Shaun Archer Tatum Shaun works in corporate finance in New York City. He has done financial consulting for several start-ups and has worked at several Fortune 500 companies. He has contributed several finance/investing articles on Seeking Alpha which have been published on Yahoo! Finance.