For many investors, the biggest risk they face is their own behavior. Unfortunately, a substantial number of people with money in the market are currently engaging in just the type of action that could cause them to experience substantial losses: Checking the market every single day.
In fact, recent research from Personal Capital revealed that 32% of investors are looking at their stocks on at least a daily basis. And as many as 40% of people have indicated they’re checking the market more frequently than before.
While this may seem harmless, or even prudent, the reality is that this behavior can set you up to make very bad decisions.
Why checking the market every day could be your biggest investment mistake
As nice as it might be, very few stocks or exchange-traded funds (ETFs) go up every single day on a nice steady path toward positive returns. Instead, stocks (and the market as a whole) have good days and bad days, or even good weeks, months, or years and bad ones. When you’re checking your portfolio balance every day, it’s easy to lose sight of this and end up making poor decisions based on emotion rather than on a sound investment strategy.