Saturday, December 16, 2006

Do you check your pulse everyday?

If you check your stocks every day, you're dumb. Think long-term.

Keep it simple: You need to set up a good investment portfolio with the kind of asset allocation you know about (stocks, mutual funds, real estate, whatever), and then make sure you're roughly on target with your investment goals.

You need to occasionally monitor your investments to see how they're doing. And you may want to set up automatic alerts through your broker/Google news to keep you informed on major news in the company. How often should you manually check on things? Probably every few months, with a major review every year. But not every day!!

If you’re reading in the press about the hottest investment technique or philosophy, stock, or mutual fund, chances are you already missed that particular boat. By the time everyone knows about it—whatever “it” is—its market has become efficient; no more spectacular gains to be had.

Happy investing!
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