1. Not worth my time to time the market.
If a group of PhD economists who study and analyze companies all day long perform as well as a group of monkeys throwing darts in stock selection, why would I bother to study and select stock?
When I share with Mini Wise Money (8 year old) the concept of day trading, she said, “that’s too much work for no guarantee more money.” She hit it right on the nail! If an 8 year old can see that it’s not worth her time to time the market, select single stocks, why would a full time doctor with full and busy life try to trade base on his/her blurry crystal ball?
2. Invest money passively.
Money is just money. It makes life easier to a certain degree. But money can’t buy everything. It especially can’t by time, company, love, happiness, or health.
Put your money on auto-pilot, KISS (keep it stupid simple), save your precious time for precious causes like your loved ones, new experiences/adventures, serving our country and the world.
3. Invest time actively.
Why waste time checking the market and buy and sell according to a guess? Why not just buy and hold the entire stock market and let it work out over long haul and bring you 8% annualized return?
For most people who trade actively, they all admit that their average hardly ever beats the passive investment model of buying and holding low cost index funds.
4. Discipline and patience win.
Research has shown those with discipline and patience do well with their investment. They don’t panic and sell when everyone else fearfully backs out of the market at sales prices. They continue to dollar cost average and faithfully put the same amount away at fixed interval of time (usually per paycheck). They also don’t frantically buy when the market is bullish and everyone is buying and bidding the price up and up.
When I focus on investing early, investing as much as possible, rather than trying to time the market in my fantasy. I am rewarded heavily over the long haul while saving my precious time for my loved ones and making myself a better person by continually learning and taking on new adventures.
5. Turnover is vanity.
Just like I don’t enjoy keeping up with fashion in clothes or accessories. I find it silly to chase the wind in investment. The market is efficient, by the time ordinary people like myself hear of the great news of how I should buy, hold or sell a particular stock, it’s too late. The to-buy stocks are already too expensive; the to-sell stocks already too cheap for me to really benefit as an individual.
Hyperactivity and turnover is just busy work without guaranteed return. Not interested.
Do you value timing the market or time in the market? Why?
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All articles by DWM are for informational purposes only and not intended as a substitute for professional advice. Please consult a professional accountant, financial adviser or lawyer, before making financial decisions.