MINT HILL, NC – Emotions can play a huge role when it comes to making decisions whether we like it or not. As human beings, we experience ups and downs just like the stock market. Our behaviors tend to dictate our decisions. Here are a few behaviors that are noteworthy:
Overconfidence: Do you rate yourself “above average” when it comes to investing? Confidence is a great behavior, but too much of a good thing can be bad. When it comes to investing, overconfidence can lead investors to focus only on the upside and to underestimate the possibility of poor performance.
Short-Term Focus: Are you online checking your portfolio performance daily, noting every daily market fluctuation? Today’s technological advancements make it easy for investors to constantly monitor investment performance. It is always recommended to regularly evaluate a portfolio to be sure it is achieving its goals; however constant scrutiny could lead to short-term investor behavior such as frequent trading.
This article was written by Voya for use by your local Cambridge Investment Research Financial Advisor.
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