Stick to your investment plan from "summary" of The Bogleheads' Guide to Investing by Taylor Larimore,Mel Lindauer,Michael LeBoeuf
The concept of sticking to your investment plan is crucial for success in the world of investing. When you create a solid investment plan based on your financial goals and risk tolerance, it is important to stay disciplined and committed to that plan, even when faced with market volatility or external factors. Many investors fall into the trap of making emotional decisions based on short-term market fluctuations, which can lead to poor outcomes in the long run. By staying true to your investment plan and avoiding knee-jerk reactions to market movements, you are more likely to achieve your financial goals and build wealth over time. One of the keys to sticking to your investment plan is to avoid trying to time the market. Market timing involves trying to predict when to buy or sell investments based on short-term trends, which is extremely difficult to do consistently. Instead, it is better to focus on a long-term investment strategy and remain patient during market fluctuations. Another important aspect of sticking to your investment plan is to regularly review and rebalance your portfolio. Over time, the performance of different asset classes may cause your portfolio to deviate from your original asset allocation. By rebalancing your portfolio back to its target allocation, you can ensure that you are staying true to your investment plan and maintaining a diversified portfolio.- Sticking to your investment plan is essential for long-term success in investing. By creating a solid plan, avoiding emotional decisions, and regularly reviewing and rebalancing your portfolio, you can increase your chances of achieving your financial goals and building wealth over time.
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