This is a terrible way to invest. But after a few early financial haircuts and the subsequent 20 years of reading an investment book or two every year, I’ve come to appreciate the much more boring and successful strategy of extremely long-should i invest with betterment investing in extremely low cost index funds. Nowadays, I don’t just avoid trying to guess the short-term movements of individual stocks.
I avoid looking at financial markets and news entirely, for weeks or months at a time. This is a much better way to invest. In fact, doing just this will not only put you ahead of most average Joes, but you will also beat the vast majority of expensive personal financial advisers and professional investors as well. The reason is simply that you minimize the main sources of potential loss: human error and our flawed boom-bust psychology, fund fees, capital gains taxes, and broker commissions.