Don't Let The News Impact Your Investing | Exploring Markets

Don't Let The News Impact Your Investing

You have to separate the news from the way you invest. You should never combine the two. Don't read the news and think, "I should buy that" or even "I should sell that." The news is entertainment. The news is in a constant cycle, never-ending since the start of modern man. It is there strictly so you can feel like you have some sense of the world and that you can share that sense with friends and family. Your investing strategy should be something else entirely.

Here's a great example showing what we mean:

The Dow is up 215% since the Wall Street Journal published the piece above. Think, just for a moment, about all the people who actually sold their stocks or did not buy stocks because they were scared Obama would hurt the entire market. You don't ever want to be one of those people.

Instead, you need to have a plan. You need to know why you invest and what your goals are. You need to know what kind of investments you like and the amount of time you're willing to commit to those investments. The news is fickle. People are paid every day to produce content and draw eyeballs. They rarely write with your investing interests in mind. So don't let it impact you.

Here are 5 quick tips to avoid the news cycle so you can instead focus on your strategy, and separate your investments entirely:

  1. Know what type of investor you are and want to be. Then stick to it.
  2. Have a long-term plan for what you want to see in your investments.
  3. Have a plan for getting out of your investments if they aren't working.
  4. Don't ever read the news with your brokerage account open.
  5. Try to avoid news about your investments and instead focus on earnings reports, trend, and the actual price of the stock.