Investors are bombarded with opinions:
Sell this, sell that, buy this, buy that, the market is going up, the market is going down, the economy is doing well, we are on the verge of a financial crisis, this is the best sector to own, this is the best sector to sell…etc.
Opinions are fine, acting on them is another thing.
So here is the Note-Card challenge…the next headline or article that creates an urge to do something, write down that urge on a note-card. Write down the prediction made or advice given as well as any data surrounding the issue. Keep it simple so you can stick to it… Somebody is telling you bank stocks are dangerous and should be sold? Make a note of what stocks he mentioned and the current price. Somebody warning of a looming financial crisis? Jot down the current economic and market environment.
Write them down. Hold on to it. Revisit in 6 months. See how accurate the predictions were. Attention grabbing headlines are designed to do just that, grab your attention. Your well being is not the focus.
Acting in a way that increases your probability for success should be a priority, and decisions in the heat of the moment tend to work against you. The Note-Card challenge may help with that…
When it comes to investment success – Behavior Matters & Simple Beats Complex.