Do you know someone that is constantly checking stock prices?
I’ve known a few over the years. These are people whose line of work doesn’t involve the markets, but they are checking stocks daily. Often multiple times a day, through the day, on their phones. It’s usually the market overall, but it could be individual stocks as well. Bottom line is that they like to stay on top of the stock activity every trading day.
Oh, and they might like to comment about the market too, if not every day then a few times per week.
Do you check stock prices, or check on your portfolio, that often?
Personally, I don’t. I would say that a monthly assessment of a portfolio should be enough. It’s good to look at where you currently are with your investments and your overall financial position, and do so each month. This doesn’t mean do a deep dive analysis on the performance of everything you’re involved in. Rather, just look to see how your portfolio is doing, and if any changes or rebalancing need to happen. This is separate from budgeting-related exercises.
This also applies to checking on the market. I keep tabs on it, maybe going out of my way to spend a minute or two checking once a month. Now, admittedly, sometimes I might come across such information on the radio, online, etc – without really going out of my way to find it. So, that’s another way to track what’s going on.
But checking every day? No, I don’t see the purpose. The average everyday guy or gal doesn’t really need to know the daily ups and downs of the market. Day trading isn’t a hobby for the middle class, and just might be a waste of effort considering the costs in terms of time and trading fees, and the net benefit – if any. It can be distracting, and to some degree nothing more than dignified speculating for some folks.
I think it’s better to focus on making money – and to a degree on saving – and then less time on investing. That’s not to say that investing isn’t important, as of course it is. I write about it frequently here, as the importance of rate of return as well as asset allocation needs to be recognized. I do think that it’s VERY important to allocate time to your investments. Just not every day!
My Questions for You
How often do you check on the markets, or your portfolio?
While acknowledging that it’s important, do you agree though that it’s something that doesn’t require constant monitoring?
Do you know any people who are obsessed with the daily movements of the stock market?