Over the long run, patience is a virtue when it comes to investing. That's why financial advisors always advocate the benefits of starting young in one's investing journey. This will allow wealth to be accumulated and compounded over decades.
Unfortunately, humans are emotional beings and we tend to interact with one another more than ever before, thank to the widespread use of social media these days. As a result of high frequency trading, algorithm bots and easy access to international market news flow, fear and euphoria can perpetuate at an alarming speed around the world. Hasty decisions made in heat of the moment are rarely right.
Volatility is a fact of life. Investors tend to over-react in either direction. Therefore, we must perform thorough due diligence on our targeted companies and tune out the 'noises'. This will help us avoid making emotionally-driven decisions. With absolute clarity on our investment objectives, we reduce our chances of ......