Myopic investing
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Myopic investing refers to focusing on short-term market fluctuations rather than long-term investment goals. Experts highlight the emotional pitfalls and potential financial disadvantages of this approach.
describes it as making decisions that seem rational in the moment but may not be wise in the long run. He suggests that emotional impulses often drive these choices, leading to decisions that aren't necessarily in one's best financial interest 1.
explains myopic loss aversion, where frequent portfolio checks lead investors to feel the pain of losses more intensely than the pleasure of gains. This can push them towards a more risk-averse, and potentially less profitable, investment strategy. He advises against constant monitoring of investment portfolios to avoid the emotional stress and poor decision-making it can prompt 2.
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