During these turbulent times it is easy for investors to make poor decisions, such as changing your investing strategy. In their recent newsletter, Edward Jones said that the “hardest part of investing is the one we have the most control over – our emotions.”
Historically, people make the wrong investment decisions because they act emotionally. When the market crashes, the best option is to buy stocks at their lows, but many investors panic and sell for fear of losing more money. In fact, many poor investment decisions result from fear, greed, and overconfidence. The best strategy for long-term investing is to make a financial plan with goals and action steps, find a financial advisor, and be disciplined enough to stick with your plan and advice from your financial advisor.
Through a new post series – Passive Investing – Surviving and Thriving in Chaotic times – I’ll explore the impact of “passive investing” and how to control your emotions to make sound investment decisions. Further, I’ll provide examples from Warren Buffett, financial gurus, and behavioral economists in my analysis to provide you with an understanding of how to succeed in volatile market conditions. Finally, I’ll go into detail on how to pick a financial advisor and make a financial plan.
Remember, there is a difference between being indecisive and choosing to not do anything.
Inaction and Patience are almost always the wisest option for investors in the stock market. ~ Guy Spier