The best investment strategy is the one you’ll stick with year in year out. Remember, whether you invest 100% of your assets in either passive buy and hold, trend following or alternates means there will be years when one style outperforms the others.When that happens, our natural tendency is to jump ship, abandoning our investment approach, inevitably at the wrong time with painful results for your portfolio. That is the last thing you want.
..it's all about following instructions and sticking to the plan
How do you prevent this emotional decision from ruining your returns? That’s simply with discipline. Whether it’s losing weight, whether it’s exercising, whether it’s getting up early, whatever strategy you decide to implement, simply stick with it. As long as your portfolio is diversified to some degree, find something that works for you and enables you to sleep well at night. Then, stick with it. Let the rules of your strategy dictate your actions, not your emotions. If that’s too difficult for you, consider partnering with a cost-effective financial planner who will help you stick with your plan.
In the meantime, try not to lose sight of the bigger picture.
“Enjoyment is, after all, the end of life. We do not live to eat and make money. We eat and make money to be able to live. That is what life means and what life is for.” George Mallory, mountaineer