Kiplinger

Ignore Your Gut Instincts When Investing

One of the smartest things you can do as an investor is to stop making moves based on your gut instincts. You will probably become a much better investor, because studies show your portfolio is likely to perform better if you avoid excessive trading.

It's tough to ignore these impulses when stocks are turbulent, up one day and down the next. But if you're trying to time the market based on hunches -- your own or those you hear from friends, family or media "experts" -- you could be setting yourself to make the wrong investment decisions, causing your investments to underperform.

Emotional decisions are usually bad decisions; after

You're reading a preview, sign up to read more.

More from Kiplinger

Kiplinger5 min read
Federal Workers: Are You Playing It Too Safe with Your TSP?
A lot of people like to play it safe. That's one explanation for why the conservative G Fund remains the most popular fund among federal employees invested in the government's Thrift Savings Plan (TSP). Because the fund is invested in short-term U.
Kiplinger4 min readSelf-Improvement
To Prepare Your Heirs for Future Wealth, Don't Hide the Truth
For parents in families of multigenerational wealth, there are a lot of perceived third rails when it comes to discussing family wealth with your children. You may be afraid that when your child learns they stand to inherit a substantial amount of mo
Kiplinger3 min read
Want a Second Passport? Here Are 3 Countries You Can Buy Your Way Into the EU
One's wealth serves as a safety net for professionals and their families. However, the current geopolitical and economic landscape might mean that wealth alone, without a larger plan, may not be enough. When it comes to travel freedom, the passport