How often does this scenario happen: You hear about some stock that has dropped in price but is set to go up. You’re told to get on board now or you’ll miss out. Maybe it’s not stock. Maybe it’s flipping houses, investing in bitcoin or cannabis.
You don’t want to be left out. Do you jump at the chance?
At Zero Hedge, Tyler Durden posted an article with the following quote.
“One of the best rules anybody can learn about investing is to do nothing,
absolutely nothing, unless there is something to do… I just wait until there is
money lying in the corner, and all I have to do is go over there and pick it up…
I wait for a situation that is like the proverbial ‘shooting fish in a barrel.’”
-Jim Rogers, Market Wizards
So, is it best to just wait? To sit on your hands? To do nothing?
Most of us have grown up thinking the right thing to do is to do something. Be proactive. Take advantage of the opportunities presented. Grab the bull by the horns! Opportunity only knocks once, etc.
Durden’s article is actually an excerpt from a post written by Jesse Felder, who writes, “Perhaps the most important lesson about investing I’ve learned is when there is nothing to do, do nothing. The problem is nothing may actually be the hardest thing to do. It takes a great deal of disciplining to actually resist the urge to do something and commit to doing nothing.”
But doing nothing is the cheaper, although sometimes more difficult choice. Especially when there’s an opportunity presented, complete with social pressure! It’s hard to watch a friend make a ton of money in something you passed on.
As the article says, “Another way to think about this is to realize that the vast majority of mistakes investors make come out of a feeling of needing to do something, of being proactive, rather than simply waiting patiently to react to a truly fantastic opportunity.”
So, you jump at the chance the stock will go up and it doesn’t. You may have felt social pressure or just the need to do something. But in the end, you made an investing mistake and lost some money. You’re not alone.
The article continues, “Right now, due to the extraordinary circumstances in the world, politics, the economy, monetary policy and more, the urge to do something is even greater than normal.” Sounds like there’s plenty of us making investing mistakes. What if there was an easy way to do nothing, but still feel like you’re doing something?
Removing human emotion from your investing, iFlip’s A.I. SmartFolios use machine learning back-end technology to drive and manage stock investments. Utilizing complex mathematical algorithms makes the best algorithmic trading software work for your investing.
You can open up an investment account and feel like you’re doing something. But you’ll “do nothing” by letting the machine learning technology of A.I. give you better protection, experience and investment strategy. It’s the best way to invest for your personal retirement planning.
iFlip’s A.I. SmartFolios constantly analyze your positions and make trades without the use of your hands or brain. It’s like a self-driving vehicle mitigating risk for you. And you can do it on your desktop or with mobile stock trading.
Listen to the lessons learned from other investors. Do nothing… until iFlip A.I. does something! Jump over to iFlip to learn more.
See Also: 5 Signs you might be a bad investor