12 Oct 2023

Look at your portfolio everyday!

This is a popular investment advice: “Do not look at your portfolio often”. The underlying assumption is that you may panic and do something you regret later—such as panic-selling when the valuations have fallen badly.

In reality, however, the opposite has helped me.

I started investing in January 2020. For the first many months of my investment journey, I was stuck inside my house (due to Covid restrictions), so there was nothing much to do. Not only was I looking at my portfolio every day, but I was also looking at the broader market and comparing it to my portfolio.

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Fast forward to 2023. Now I don’t really care as much to look at my portfolio. Nor do I care about how the Nifty index moved or how S&P 500 moved. Because I know—from the experience of watching my portfolio closely for months—that the changes are fairly inconsequential. I am not going to sell today or tomorrow. It matters little what the market did today. Inconsequential information becomes boring very soon.

If you are mature enough to not pull the trigger at a sign of a fall, watching the market or your portfolio every day can make you a better investor. It’ll help you focus on what matters while ignoring the noise.

PS: If it becomes very hard to resist the urge to do something, follow Gaurav Rastogi’s advice #5 from this article: just buy some asset for a tiny bit of money.

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