Tidbits of Information…….
Which rules your investments – Your Head or Your Heart?
Relying on emotion for your investment decisions could lead to mistakes, and derail your investment goals. Here are 3 common mistakes to avoid:
Are you being influenced by the media? There is a constant flow of information and advice from newspapers, television and the internet. Don’t be overwhelmed. Feeling the need to react is understandable, but it’s an unlikely way to reach your long-term goals. The information isn’t tailored to your specific investment goals, and the information is very often old, plus it changes daily.
Discuss your concerns and ideas with your investment representative before taking any action.
Are you thinking about following the crowd? Sometimes our friends and relatives offer well-intentioned investment advice. Just because they are investing in a particular product doesn’t mean that you should also.
*Your financial situation and objectives may differ from theirs
*Their investments may carry more risk than you can tolerate
*Timing can have an effect on the potential for a gain or a loss
Instead review regularly your investment plan with your financial representative. By doing so, you’ll stay on course for achieving your goals.
Are you staying with your plan? Many investors will go out of their way to avoid a loss. In doing so, you could be assuming extra risk by trying to avoid that loss. If you are too conservative in your investing or if you jump in and out of the market, you could miss out on potential market gains.
Instead, don’t change your investment strategy to avoid temporary market fluctuations. Speak with your financial representative about a long-term plan that’s tailored to your time frame and risk tolerance…..and then, stay the course.
