All too often, we see investors who are underperforming because they let fear and greed drive their decisions. Because of this psychological entrapment, they are buying when prices are too high and selling when prices are too low. One of the main reasons for this phenomenon is that they are focusing too much on the noise of financial news. In our current technological age, where everyone has a voice, and every fact and opinion is just a click away, can it be that we have too much access to information?
Behavior analyst Daniel Crosby, Ph.D., wrote an article on the overconsumption of financial media, warning investors about when and what and how much to listen to when it comes to your investment information.
Crosby recommends to simply, “turn your TV off.” This would probably include your smartphone and tablet as well. But he realizes most people have a hard time being that disciplined. The allure to indulge in the bevy of websites, apps, channels and pundits proves