You know how people keep telling you not to look at your stocks every day? Apparently they think you are too dim-witted to understand that daily market moves are simply Brownian motion.
That may be true of people who don’t read IFO, but you know better.
Here’s why you should look daily:
* You will get headline news about each company and its industry.
* You will get a sense of the trends on a weekly and monthly basis.
* After you become familiar with each company, unusual events will jump out at you. “Whoa! That’s never happened before! What are other people saying about this – analysts, the company, financial blogs…?” You do a little more research and decide whether the news warrants a move (buy more, sell some or all?) on your part.
At the beginning or end of each month or quarter, you can step back and scan the financial horizon, look at the market indexes, do some comparisons of several companies with the indexes.
This shouldn’t take a long time – maybe an hour or so, once you get the hang of it.
There IS one danger to checking daily – you can get lulled into complacency.
“Yeah, yeah. Knew that. Saw that. No big deal. Etc., etc.” This is why you need the monthly/quarterly review.
Stand back and think about where you are relative to the market as a whole. You’ll be glad you did.
The really rich have wealth that lies very still through generations.
Not respecting one's enemies leaves one vulnerable to them, even after they’re defeated.
It doesn't take a genius to make money in a rising market.