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Stay informed but don't overtrade from "summary" of A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing (Twelfth Edition) by Burton G. Malkiel
It is essential for investors to stay informed about market trends and economic developments. Keeping abreast of the latest news can help individuals make more informed decisions about their investments. However, there is a fine line between staying informed and overtrading. Constantly buying and selling securities based on short-term fluctuations can lead to high transaction costs and potential losses. Overtrading is often driven by emotions such as fear and greed, rather than rational decision-making. Investors may feel compelled to act impulsively in response to market volatility, leading to impulsive trades that are not based on careful analysis. This can result in a portfolio that is overly concentrated in risky assets or subject to frequent turnover. Instead of succumbing to ...
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