Be Guided By Facts, Not Feelings

May 6, 2013
by Michelle Perry Higgins

Start Shopping for Long-Term-Care Insurance at 45What advice would you give to a prospective do-it-yourself investor?

There are essentially three key pieces of advice I would give to the DIY investor. First, don’t ever make emotional trades within your portfolio. Create a sound financial strategy you can maintain and use that plan as your guide. You should always base your financial decision on facts, not feelings. If you don’t believe you can do that, then perhaps it’s time to hire an adviser. Second, keep your costs as low as possible within your portfolio. You might also want to consider the addition of index funds as they are highly cost effective. Finally, if you are truly going to be a do-it-yourselfer, you should manage your portfolio as if it’s a part-time job. Have a routine that you follow regularly and don’t try to wing it. To be successful, you have to give your portfolio the necessary time, attention and research that’s needed, otherwise known as T.L.C.