How To Stop Checking Stocks EVERYDAY! 3 Strategies I Used & The Benefits From Checking Less Often

Summary

In this video, Paul discusses the pitfalls of frequently checking one's stock portfolio, which can lead to impulsive decisions and anxiety. He admits his own tendency to check too often and shares his strategies to overcome this habit, including setting specific times for portfolio reviews, committing to long-term stock holdings, and removing his brokerage app from his phone. Paul emphasizes the importance of long-term investing, citing Warren Buffett and Charlie Munger, and encourages viewers to find their own strategies to reduce stock-checking frequency for better financial health.

Takeaways

• 😀 The speaker admits to frequently checking his stock portfolio, which he feels is detrimental to his financial health.
• 🤔 He suggests that constantly monitoring stocks can lead to impulsive decisions based on short-term fluctuations rather than long-term strategy.
• 📉 The speaker mentions that reading too much into bad news or a single stock's performance on a 'red day' can lead to premature selling.
• 🕊️ He emphasizes the importance of long-term investing, citing Warren Buffett's philosophy of buying quality companies and holding them.
• 📈 The speaker acknowledges the difficulty of timing the market, which even billionaires like Buffett avoid.
• 🚫 He shares his personal experience of trying to time the market and admits it's not his strength.
• 📅 The speaker proposes setting a specific time to check the stock portfolio to reduce the temptation of constant monitoring.
• 💼 He recommends considering the opportunity cost of time spent on checking stocks, suggesting it could be better used elsewhere.
• 🔑 One of the strategies he's adopting is to check his stocks only once a month, aiming to remove emotion from day-to-day market movements.
• 📱 As part of his new approach, the speaker plans to delete his brokerage app from his phone to further limit the urge to check his portfolio frequently.
• 🎯 He sets a goal for 2021 to buy stocks with the intention of holding them for at least one year, reinforcing his commitment to long-term investing.

Q & A

Why does Paul believe checking his stock portfolio too often does more harm than good?

Paul believes that checking his stock portfolio too often does more harm than good because it can lead to emotional decision-making, such as selling stocks too early on bad news or buying impulsively on good news. It also wastes time that could be used more productively.

What are the potential negative consequences of checking stocks too frequently?

The potential negative consequences include overreacting to market fluctuations, making impulsive decisions, experiencing increased stress and anxiety, and wasting time that could be used for other productive activities.

How does Paul compare his ability to time the market with that of Warren Buffett?

Paul acknowledges that even Warren Buffett, a highly successful investor, admits he cannot time the market. Paul uses this to illustrate that he, like Buffett, is unlikely to succeed at market timing and should instead focus on long-term investments.

What is Paul's strategy for checking his stock portfolio less frequently?

Paul's strategy includes setting specific times to check his portfolio, committing to a long-term investment plan of holding stocks for at least a year, and deleting his broker's app from his phone to reduce temptation.

Why does Paul suggest setting a specific time frame for checking your stock portfolio?

Paul suggests setting a specific time frame to reduce the emotional influence of daily market fluctuations and to make more rational, long-term investment decisions.

What is the importance of considering opportunity cost when frequently checking stocks?

Considering opportunity cost is important because the time spent frequently checking stocks could be used more productively, such as working on a side hustle or another income-generating activity.

How does Paul plan to enforce his New Year's resolution for stock investments in 2021?

Paul plans to enforce his resolution by committing to hold any stock he buys for the entire year, which will make him think more critically about his investments and avoid short-term trading.

What is the third strategy Paul uses to check his stocks less often?

The third strategy is deleting his broker's app from his phone, which reduces the temptation to check his portfolio frequently. He plans to re-download the app only once a month to make any necessary changes.

Why does Paul believe focusing on long-term investing is more beneficial?

Paul believes that long-term investing is more beneficial because it aligns with the advice of successful investors like Warren Buffett and Charlie Munger, who emphasize that significant returns come from holding investments for extended periods.

How does Paul plan to keep his audience informed about his progress with these strategies?

Paul plans to keep his audience informed by sharing updates and any tweaks to his strategies through his channel, encouraging viewers to subscribe for ongoing insights.