Stick to your investment plan and avoid emotional reactions from "summary" of Random Walk Guide To Investing by Burton G Malkiel
Investors are often tempted to make impulsive decisions based on emotions rather than sticking to a well-thought-out investment plan. This can lead to costly mistakes that can derail long-term financial goals. When the market experiences fluctuations, it is crucial to avoid knee-jerk reactions and stay focused on the original investment strategy. One common emotional reaction is panic selling during market downturns. Investors may see their portfolio values decline and feel compelled to sell off investments to minimize losses. However, this reactive approach can lock in losses and prevent investors from benefiting from eventual market recoveries. It is important to remember that market downturns are a normal part of investing, and staying the course can lead ...
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