How to Stop Paying Attention to Your Stocks

Constantly paying attention to the stocks you hold is detrimental to your wealth. The more often you check your stocks, the more compelled you will be to do something. In most realms of life, activity leads to success. Investing is not the same. Trading stocks for the sake of creating activity is costly. You pay various frictional costs and trigger taxable events, which reduces the funds you have invested to compound your wealth. This article covers how to stop paying attention to your stocks.

Step #1: Realize One Day Doesn’t Matter - There are 252 trading days in every calendar year. The stock market is volatile. Every trading day, stock prices may go up, or they may go down. Step #2: Listen to Warren Buffett - “I buy on the assumption that they could close the market the next day and not reopen it for 5 years.” Step #3: At Max, Check Quarterly - The maximum you should check into a business – and I mean the actual business, not the stock price – is once a quarter. Step #4 Spend Your Time Wisely - Time is money. The more we waste, the less valuable our lives become. There is no real joy to be gained from checking stock prices. In my experience, it only causes unnecessary worry and anxiety.

Source: Guru Focus

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