All Articles/Investing/The Investing Fast Lane

The Investing Fast Lane

Trying to buy and sell in order to prevent losses and increase gains rarely works.

I admit it. I’m guilty of weaving in and out of traffic to try and beat whomever is in front of me in an attempt to get where I am going faster. Whether I blame it on my type A personality or my general desire to get ahead, I find myself all too often trying to squeeze out every second of my drive.

When I stop to think about it, this rarely works and only adds to my frustration and anxiety. The truth is, I often end up at the next traffic light right next to the person whom I was trying to out run. I get nowhere fast with this strategy.

The same holds true about investing. Trying to buy and sell in order to prevent losses and increase gains rarely works. Look at recent market behavior. If you sold as the market was declining, when did you get back in? The market is back in bull territory. Had you stayed in and held steady, you would have been better off.

As long as you have an appropriate allocation of your investments, that not only matches your risk tolerance but works with your financial plan for the future, there is no reason to weave in and out of the stock or bond markets. Rebalancing to maintain your risk level is needed but making substantial changes based on market conditions is a fool’s errand. Stay the course and you will get to your financial destination with less stress and more reliability.

About the Author

User Photo

Lorraine Ell

CEO and Senior Financial Advisor

Lorraine is the CEO of Better Money Decisions (B$D) and co-author of the blog Better Financial Decisions. As a principal of B$D, she is excited to continue her long career as an investment professional which started when she worked in the 1980s as an advisor with Drexel, Burnham and Lambert and J.W. Charles and as co-owner of a Registered Investment Advisory firm.

Living and working in places as diverse as Jeddah, Saudi Arabia, and Budapest, Hungary has given her a unique perspective on the world of investing. Through these experiences she has learned that life can change in an instant and having a financial guide can make all the difference between a retirement fraught with worry and one with peace of mind.

Start Making Better Financial Decisions Today

Sign up for FREE and get these reports sent to your inbox:

5 Serious Mistakes To Avoid In Retirement

Pursuing A Better Investment Experience

The 10 Steps Every Smart Woman Must Take to Ensure Her Money Lasts In Retirement