Getting investment ideas from your news feed? You’re playing ‘shiny object Whack-a-mole’ while trying to get a drink from a firehose. It goes something like this: You get drawn into an investment idea you see in the newsfeed on your phone (get excited chasing the latest shiny object). You make the investment (WHACK!). It goes down (WHACK!) and suddenly you are in damage control mode. No problem the newsfeed ‘firehose’ will show you another idea within minutes. Like gambling you get excited and feel compelled to act to make up for the most recent loss (buy or sell something – WHACK!). You’ve developed a bad case of ‘circling the drain syndrome’.
When investing, there is rarely a need to act quickly. If you find yourself excited about an idea that appeared in your newsfeed set it aside and look at it again in 10 days. If it is a good idea today, why wouldn’t it be a good idea in 10 days? You may miss a small upward move over the next 10 days but if it is as good as it appears holding it for three to five years will probably more than make up for what was missed over 10 days. While you wait for the 10 days to pass check on the credibility of your investment approach. Ask yourself, “Would a friend or spouse understand and support my investment selection process?” If you cannot articulate your process convincingly to a third party go back and work on it until you can.
Chasing investment ideas that appear within your news feed is just another form of a carnival game without a barker to draw you in. What have you got to lose? Time and money.
Get serious about investing. Stop wasting time playing a carnival game. Contact us today.
…and then there is this….
A young married man recently asked me to suggest a flyer stock to invest $5,000 (I heard, “got any shiny objects to invest in?”). Implying that he was willing to place a ‘bet’ in the investment market ‘casino’. I suggested that because the chance of a positive outcome of such an approach was small and that the resulting requirement of explaining what happened to the money to his wife would exist forever a better approach would be to simply give the money to his wife to do with whatever she wants. The money may eventually be gone but he wouldn’t have to explain where it went.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
No strategy assures success or protects against loss.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
No strategy assures success or protects against loss.
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