Planning should reduce risk: Part II
Buying and selling investments is just an ordinary part of being an investor. Whether you regularly rebalance or employ a tactical shift in your asset allocation, having a system in place to tell you when to buy and sell will keep you from panicking and bailing out at the wrong moment.
“Emotions are going to screw you up as a DIY investor, or even a professional. Your emotions are going to mess you up and make you buy and sell at the wrong time,” Tuttle says.
A well-planned methodology will take fear and elation out of the equation.
Adopt a placid attitude and an enlightened approach to investing. “This is what I’m going to buy and when. This is what I’m going to sell and when,” says Tuttle.
Time in the market, not timing the market