Kiplinger

Ignore Your Gut Instincts When Investing

One of the smartest things you can do as an investor is to stop making moves based on your gut instincts. You will probably become a much better investor, because studies show your portfolio is likely to perform better if you avoid excessive trading.

It's tough to ignore these impulses when stocks are turbulent, up one day and down the next. But if you're trying to time the market based on hunches -- your own or those you hear from friends, family or media "experts" -- you could be setting yourself to make the wrong investment decisions, causing your investments to underperform.

Emotional decisions are usually bad decisions; after

You’re reading a preview, subscribe to read more.

More from Kiplinger

Kiplinger3 min read
Cryptocurrency: Stay In? Get Out? How to Decide?
Warren Buffett is famous for saying “Only when the tide goes out do you discover who's been swimming naked.” If you invested in cybercoins, the news has not been good lately. Are you wearing your bathing suit?  What to do?  Is time to take your profi
Kiplinger5 min read
As the Market Falls, New Retirees Need a Plan
Anyone newly retired or nearly so must feel like they have the worst timing in the world. A portfolio tends to be largest near retirement, just before those savings are about to be drawn down. These days, however, most portfolios have lost value; the
Kiplinger5 min read
4 Steps for Managing Income Withdrawals in Retirement
If you’re like most Americans nearing retirement, you’re worried about whether you have enough savings. In fact, only 22% of those approaching retirement believe they’ve saved enough to retire comfortably. At a time when the stock market is down, inf

Related Books & Audiobooks